the location and warehouse location level, ensuring you can accurately match demand and delivery, and reduce overselling and underselling.
Combine good inventory visibility with some inventory management best practices, and you have a recipe for success.
What are inventory management best practices?
Visibility is critical to your inventory management efforts, but there are a few other best practices to consider. Here’s what to keep in mind as you plan your inventory management strategy:
Quality control: It’s essential for businesses to thoroughly check all inventory for defects or any other potential issues before selling products to customers. Without quality control, customers may end up purchasing damaged goods, which leads to negative reviews and a tarnished reputation.
Inventory should be inspected as it arrives at your warehouse facilities, but quality control should also be prioritized throughout your handling, storage, and shipping processes. This includes proper packaging and working with reliable shipping partners who handle your inventory with care.
Connected systems: By connecting your inventory management america phone number list system with others in your ecommerce stack, you create a transparent, holistic view of your business for cross-functional teams. It’s much easier to gain insights that will drive your business forward when inventory management is integrated with your customer relationship management (CRM) platform and order management system.
Monitor and optimize: Inventory management isn’t a “set it and forget it” task. Market conditions, customer demands, and business goals change. If you are continuously monitoring and improving your inventory management practices, it’s much easier to adapt. Collect and analyze feedback, data, and track metrics to identify improvement opportunities for your business.
How to track inventory management success
Wondering how you gauge the performance of your inventory management systems and operations? Here are a few key performance indicators (KPIs) to track:
Stockouts: A stockout is when a product is unavailable — which can be frustrating for customers and damaging to brand loyalty. If and when stockouts occur, investigate why there wasn’t enough of that product and use trend forecasting to stay on top of demand. By better predicting when sales will increase, you’ll have time to adjust your inventory in advance.