Top 3 Big Inventory Management Questions and Answers
09 Apr 2021
It is not big news that inventory management plays a vital role in the profitability of businesses. There are always certain inventory management questions and answers bothering most retailers.
Each retail business has its own method for keeping track of inventory. One, for example, may prefer keeping small amounts to avoid the overhead costs. The others may choose the opposite. This is referring to those who hold too much inventory. Subsequently, they assume they can meet customer satisfaction easily in that way. Therefore, they may end up with obsolete inventory. This is just one example of poor inventory management. Apart from it, there might occur multiple other issues while keeping track of inventory.
Now we hope the extracted top three inventory management questions and answers will help you for your ease of reference.
What is the Best Way to Manage Inventory?
The best way to track inventory accurately is to use proper stock management software. The use of omnichannel software solutions becomes a must-have nowadays. This is true especially for the cases when you are starting to deal with huge sales volumes. There is no way to succeed with manual operations in that case. Even if the businesses consider hiring new human resources there are fewer chances to manage the stock accurately. The more the human impact is, the more are the chances your job will be full of errors.
eSwap as a SaaS software solution provides all the benefits of automated systems for eCommerce businesses. Automation becomes possible with the application of AI (Artificial Intelligence).
Apart from it, you can track your stock levels with real-time stock updates due to cloud-based software features.
The retailers have the chance to control overall stock from one dashboard. It refers to sales control with sales channels first of all available with the integration opportunity.
For those who have stock on sale on multiple channels, you can manage them from a single dashboard, instead of going manual to make updates from these sales accounts one by one. Forget going manually to your eBay store, then Amazon store, then Shopify to make sales orders or other operations.
How to Keep Track of Inventory Located in Multiple Locations?
The second frequently discussed topic among inventory management questions and answers is “How to Keep Track of Inventory Located in Multiple Locations?”
The sales growth assumes that the companies will ask for more space for their inventory. However, relying only on one warehouse even if it’s at the best possible location as your business grows is not a resolution. Here is why you need to add more locations to manage your stock more accurately. The best variant is about using cloud-based ERP systems.
There are multiple methods to manage your stock at multiple locations. Let’s discuss them one by one now:
Using cloud-based systems means having access to your stock from anywhere in the world. As the locations of your warehouses enlarge, it becomes a necessity to remove the physical boundaries. eSwap, as cloud-based software, enables the users to update and view the inventory status in real-time. Due to eSwap’s order management feature, you can be sure you are minimizing the fulfilment costs and saving your time.
Integrate with Suppliers
As your stock levels grow, the management becomes more difficult. You can handle the process only by using courier integrations. The warehouse management feature is available on eSwap that puts everything into practice. It allows you to have information about your inventory value, availability, lead times, backorders and many more.
Inevitably, you can maintain your stock without difficulties and make the inventory pricing more accurate. It becomes possible with the shipping couriers like UPS, USPS, FedEx and many others. Apart from it, it’s good to apply good warehouse management systems (WMS) to be sure you can control and monitor warehouse operations effectively.
As long as you put customer satisfaction as a top priority, you can be sure it’s possible with those couriers.
Application of Inventory Analytics
In order to make strategic decisions, high-quality data becomes a must-have. It refers to all the aspects of businesses. Inventory management is not an exception either. Cloud-based ERP systems like eSwap, make it all possible effortlessly. Due to Analytics and Reporting software feature, it may give you data on various turnover rate issues. The turnover rate shows you how many times your company turned over its stock throughout the year. And if the companies discover it’s low, for example, your reports reflect that data.
What are the Benefits of Using Inventory Management Software?
Tracking your stock on a regular basis saves from a lot of nightmares. Accuracy is what the businesses need first and foremost. Solid inventory management makes it possible. You can have the exact stock and order amount to meet customer demand.
Costs reductions are another asset for businesses. It goes without saying that stock costs money until it sells. With the help of inventory management software solutions, the process becomes more effortless. You don’t need to worry about stockouts and excess stock, for example. Apart from it, you can have better insights and reporting. This simply assumes that you can spot sales trends or track recalled products or expiry dates.
As long as the businesses have accurate data on their stock demand they can have better customer feedback. It basically means they will be able to provide the right amount of stock at the right time, which is essential. Better insights are essential not only for customer demand but also for better terms with vendors. As long as you have accurate stock data, you’ll know what products to sell and at which volumes.