Every online business starts somewhere small, where the stock is kept in a room or a garage. It eventually expands to occupy the entire store or shop. This expansion undoubtedly brings profit, but also adds the burden of managing the massive stock, which is placed in different locations to optimize the delivery costs. Especially when it comes to an international e-commerce business, they have their stock stored in different places, and inventory control hence becomes even more challenging. This blog is here to solve your problems regarding the MultiChannel Inventory Management System.
Building the Base: Multi-Channel Inventory Management
Multichannel inventory management as a term might seem heavy, but it is a pretty simple one. Let’s break it down to understand it better:
- Multi-Channel: it refers to different channels, and here in e-commerce, multichannel refers to different sales channels.
- Inventory Management: It is the management of stocks such that the data and availability of the products can be tracked at any time.
Automated inventory management system is something that helps the seller manage their stock levels, keep track of product numbers, and manage the warehouses across different sales channels. It offers a variety of benefits to the business, which you can explore in the further sections.
How Does Multichannel Inventory Tracking Help with Business Promotion
As a seller, you need a reason to incorporate something new into the business. Now, incorporating a stock management system for all the existing sales would require strong reasoning. Here’s what the inventory administration brings to the table:
1. Escalation of Sales Opportunities
With updated stock levels and well-managed inventory, sellers can improve their scope of sales. As customers’ frustration spike as they discover that the product is out of stock. With systematic management of stocks, the all-time availability of the products can be ensured, increasing the scope of conversion.
2. Driving Decisions Driven by Facts
Inventory is the reflection of business performance, and the data with respect to the same can be studied to understand the needs of the business to make well-informed decisions. Data analysis is simplified with MultiChannel Inventory Management Software, which can prepare the report and present it in a readable form to the sellers.
3. Stock Optimisation
Optimisation is a major cost saver for sellers, as both under-stocking and overstocking are not good for business. Understocking leads to stock-outs, especially in the sale season, and overstocking leads to piled-up unsold products, lowering the cash flow into the business.
Strategizing to Witness Rising Sales
Every business looks forward to availing the benefits of stock management, but it involves the right strategy, and here’s a comprehensive list of strategies you would want to add to your plan:
1. Maintain Accuracy with Product Data
Product data denotes the accuracy of real-time inventory management. Errors in this area bring a lot of chaos. Maintaining uniformity with product data helps with streamlining stocks and related numbers across different channels. Also, mapping of different channels on a centralized platform is possible only if the product data is accurate.
2. Warehouse Organisation
Warehouses store the products for online business owners, and managing the same is vital for the management of stock as well. It allows streamlining of operations, reduction of errors, and improvement of overall productivity. There are a few common techniques used by businesses to optimise their warehouse:
- FIFO - First in First Out system: to make sure that older stock goes out first
- Proficient Pick paths: to optimise the energy and travel time of parcel pickers.
- Technological Support: to eliminate unnecessary efforts made by human resources through automation.
3. Use Wider Shipping Options
Wider shipping options improve the scope for faster delivery, suitable when managing products present in different places on different sales channels. This allows flexibility to provide faster fulfillment, driving customer satisfaction. Here are some options that sellers can opt for:
- Amazon MCF/FBA
- Third-Party Fulfillment Providers
- Local Pickup
- International Shipping Options
4. Maintenance of Inventory Audits
Regular audits allow the seller to have control over products and their numbers. It eliminates the chances of errors and discrepancies. Also, the earlier strategy of accuracy with product data will be implemented effectively. Audits can be conducted in two ways:
- Complete Recounting: involves physical counting, but it is very time-consuming and error-prone.
- Cycle Counting: includes counting smaller parts on regular intervals, but this can lead to discrepancies due to missed stock.
So, one needs a technological solution to this.
5. Selection of the Right Multichannel Inventory Management System (MIS)
Sellers already have a lot on their plates as they compete with millions of sellers in the online space. On top of this, managing multiple channels and their inventory comes up as a challenge. Technology is the only solution here, and selecting the right software might seem difficult. But this is a simplified list of features one must look for:
- Versatility with Sales Channels
- Catering to All Inventory sizes and complexities
- Exclusive Features
- Scalability
- Affordable
Your Business Needs Multi-Channel Inventory Management
To summarize this blog, one can say that online businesses from medium to large scale require multichannel inventory management in order to scale and organize their business. It also plays a considerable role in sales expansion. While finding a versatile software can be a bit problematic, MapMyChannel provides everything under one roof. It allows stock management across multiple channels at an affordable price while supporting different sales channels like Amazon, Shopify, TikTok Shop, etc.
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