Any growing organization with ecommerce platforms needs to monitor and track its inventory as a priority. Whether you believe it or not, a fragile ecommerce inventory management system can impact the online business enormously. If you are selling in the online space, it would be very helpful for your organization to understand the importance of the wholesale order management system on time before your organization lands at any significant loss.
Hence, an online seller must possess extensive knowledge of inventory management. It is necessary to fulfill customer orders, initiate shopping on time, and manage the warehouse. Additionally, it could also be beneficial in restricting the waste of the product. It can help organizations manage their inventory, further increasing business efficiency. Fulfilling the customer’s demand without making excessive or overstock inventory is the primary objective of this software. You must understand every aspect of ecommerce order processing software to establish a sustainable, profitable, and scalable online business.
So, here in this blog, we will go through the workflow of this software and the significant challenges you might experience while inventory management.
Workflow Of An Wholesale Order Management System
You already know that inventory refers to the goods or supplies an online business plans to resell to clients to make money. The ability to track goods from producers to warehouses is a critical component of the entire supply chain. Having appropriate products available at the right location and time is the core objective of inventory management. We have discussed the workflow for inventory management here and in the following points.
Acquiring Inventory: The initial and most crucial step is buying goods from 3rd party vendors, wholesalers, and manufacturers and delivering them directly to the storehouse or warehouse.
A Stockpile of Inventory: Inventory must be stored until required. Materials and products are transferred to different fulfillment centers across the nation until they are ready for shipment.
Gives Correct Inventory Report: Accurate inventory information could only give you clear insight into the stock-out condition that could make the customers satisfied and happy with the services.
Inventory management may be one of the most valuable aspects of your eCommerce business. Whereas having too many things on hand can hurt your company’s bottom line, having too few can make your customers very unhappy. You require an inventory management system to manage all these inputs and outputs, especially large scale deals.
Challenges Without Inventory Management Software
Overstocking and Downstocking
In the eCommerce industry, you need substantial inventory control and an understanding of your customer’s buying preferences to avoid being able to meet demand or overestimating how much inventory you’ll need at any given time to do so. Having a large inventory can be meritorious, but it can only be helpful if you have out-of-date products in storage. The likelihood of having too much dead stock on hand rises. When you have enough inventory and sufficient demand, you have deadstock, which you cannot sell. It occurs when shopper preferences and market trends change. Alternatively, less stock or down stock immediately impacts the market reputation of an organization, and you might lose the customer’s trust.
Lack of Visibility Across Multiple Channels
As demand rises and managing inventory across numerous eCommerce platforms becomes more complex, you need more visibility. As your company grows, you may offer your goods on various online marketplaces, including Amazon, Myntra, Flipkart, Snapdeal, etc. However, if you employ eCommerce inventory management software, which can assist you in managing your inventory through its centralized function, keeping track of sales and orders from each platform can be difficult.
Lack of Inventory Data Insight
Lack of inventory data insights is a problem that sellers frequently have with inventory management. You must take the power of inventory data into account if you want to grow your company. It would help if you comprehend how your inventory varies over time, how demand changes, estimate future requirements, know when to place product reorders, and other factors to increase revenue and satisfy your customers’ needs. You need inventory data knowledge to carry out all of these processes.
What Does Inventory Management Software Do?
Restrict Overstocking & Downstock
You can quickly determine how much inventory you need to stock up on with the outstanding function that offers precise inventory reports. It automatically gets rid of down stocks and overstocks. Consequently, you will be able to save a significant amount of money to invest in enhancing the other facets of your company. Overstocking might also put you in a position where you have to deal with dead stock issues. On the other side, low supply levels can severely cause you to lose essential clients.
Ensure Order Fulfillment
One of the critical components of every eCommerce firm is meeting the product delivery date. It can be terrible if you can’t satisfy your consumers’ needs since you risk losing those valued clients. Wholesale order management system synchronizes any order with your inventory to ensure order fulfillment. It gives you a crystal-clear view of the products that are and are not available. Doing this will make it simple to deliver orders to clients on schedule.
You must effectively manage your inventory to grow your online business. If you prioritize this issue, you can avoid finding yourself in a precarious scenario where you lose consumers and money. You can even use wholesale QuickBooks POS ecommerce integration to reconcile your inventory. It can assist in balancing claims, disputes, damage, and return information. You need to comprehend this substantial software’s significance and advantages.