4 Reasons Why You Need Inventory Management Software for Your Online Retail Business
eCommerce is evolving rapidly. Technologies are improving to accommodate greater diversity in an intuitive way making it easier for anyone to take their products and services online. Having increased by 44 percent in 2020 alone, online sales are trending dramatically upwards which means the logistics surrounding each sale have been forced to improve. This is good news for retail business owners— that is, if they are taking advantage of the solutions available.
For those who have grown an online retail business, many would agree that inventory and distribution presented some of the largest hurdles in the beginning. Perhaps at that juncture, the issues were to the tune of insufficient funding or lack of integrated partnerships with delivery companies. However, as revenues increase, the tune changes, bringing focus back to the basic economic principle of supply and demand. As inventory grows, it becomes increasingly important to properly manage it. Failure to do so can have a direct impact on the overall success of an operation. Here are some reasons why your online retail business should consider implementing inventory management software to help streamline your operation.
1. Actionable Insights
Aside from the critical benefit of inventory accuracy, inventory management solutions provide greater tracking and stock control. This makes it much easier to spot sales trends, track returns, reduce the risk of overselling, and avoid excess stock. Such insights can be used to forecast future buying climates as well as identify customer buying behaviors. They can also be leveraged to negotiate better terms with suppliers. When an organization is focused on following antiquated procedures, these insights are much more difficult to rescue.
2. Cost Reduction
If stock isn’t selling, it is costing the company money. Carrying costs in the form of occupied space and time quietly impact profitability. In an ideal world, the product will sell shortly after it is received by the seller— not much sooner, not much later. Having a bearing on inventory is crucial to making necessary supply chain adjustments— adjustments that can lead to higher inventory turnover, increasing profits. In addition, better inventory tracking can positively impact quality control, reducing returns and subsequent buyer dissatisfaction that discourages future purchases.
Organization increases efficiency. When everything is in its right place and accounted for, the entire operation moves more smoothly. Orders take less time to process and fulfill while the replenishment of stock carries out seamlessly within a steady workflow. With a good inventory management software, time savings are significant— a thing directly related to organizational improvement within the warehouse.
4. Better Customer (and Employee) Experience
It’s no secret that customers who receive their orders on time are more loyal. If orders are poorly managed, the seller is already one step behind. Employee experience is also an important thing for organizations to consider. High employee turnover is often a result of strained systems and processes. Workers aren’t built to memorize the whereabouts of products reaching thousands in number any more than they are built to juggle a dozen balls with a single hand. If inventory management is labored, then worker job satisfaction is likely in a similar state.
Good inventory management tools and practices significantly benefit the health of online retail businesses by providing an accurate inventory tally. Moreover, when such solutions are integrated with a flexible ERP system, inventory can be optimized and operational harmony, achieved. Sequoia group offers a wide range of distribution management solutions that help organizations reach their growth objectives. For more information about our inventory management software or other solutions, contact us at 801-571-2300 today.