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Most Prominent Inventory Management Mistakes in Global Online Selling
In today’s internet-driven world, online shoppers happen to be most concerned about what happens after they have successfully placed an order on an international Ecommerce platform. Sellers or brands are recognized and rewarded by the way they deliver high-quality end-to-end customer experience. Though most global Ecommerce sellers or brands understand the importance of packaging and delivery for customers, they often tend to overlook another area of order management that should ideally hold equal importance. To be a forerunner on the top international Ecommerce marketplaces, an extra mile needs to be taken; proper inventory management can set a seller or a brand as a marketplace leader.
Significance of Inventory Management
Inventory or stock is the most crucial component of any Ecommerce business and when it comes to selling online internationally, it matters even more. To be specific, inventory is considered the most vital component because during the entire buying-selling cycle in cross-border Ecommerce, inventory helps to generate the much-needed revenue for a business to keep going. Inventory Management, as such, refers to the entire process of careful planning and co-ordination of the availability of products for business. Without efficient inventory management, a global Ecommerce business cannot achieve optimal growth. There has to be a consistency of stock across all sales channels for being able to sell the right set of products at the right time.
Most Common Inventory Management Mistakes
Inventory Management, especially in global Ecommerce, might be too complicated a subject than it might seem. However, by avoiding a handful of the most noticeable inventory management mistakes, global online businesses can improve their operational efficiencies for earning higher overall revenue. Some of the most common inventory management mistakes are listed as following:
Absence of proper planning:Shortcomings in forecasting can hamper the lack of proper planning required for proper inventory management. Reviewing the same old reports for back-orders and trying to find ways to cover up the losses is of no help for the long run. Having robust planning as a long-term solution is important.
Weak visibility to inventory:In an era of multi-channel selling, poor visibility to inventory can be a big profit-dampener. Strong visibility to current inventory status is utmost required by sellers or brands. This makes it easier to plan for sales in a much more organised way, thereby allowing customers to stay informed about products across all sales channels.
No automation:Tracking inventory manually using MS Excel or some other process might be really time, energy and money consuming. Wasting resources on going through papers and entering them on spreadsheets and fixing them one by one for any error is an impractical approach to inventory management. An automated system enables tracking multiple products across multiple locations and monitoring all kinds of fulfilment services relating to it.
Lack of performance measurement:No initiative to track performance measurements of products is a serious concern for effective inventory management. Two metrics that really matter in this regard are daily fill-rate and inventory turnover. There should be continuous monitoring of these two for better improvisation.
Lack of real-time reporting:Negligence in capturing real-time insights about inventory can be harmful. Sellers or brands should prioritize real-time reporting mechanisms for getting better visibility to the operational processes. Real-time insights can help online businesses to effectively cater to the requirements of customers for global Ecommerce.
Improper tracking of the supply chain management process:Monitoring only a small portion of a supply chain can prove to be a serious mistake. Proper tracking of supply chain implies tracking the stock of both the raw materials as well as finished products. Also, keeping a constant check on changing the shopping habits of customers and how it affects inventory needs and supply can also be very useful.
Inefficiency to scale up:Inability to scale up in inventory for special sales periods or seasons can be a great hindrance to growth in revenue of global Ecommerce. Scaling up refers to having adequate stock for peak sales periods or seasons on the international online marketplaces.
Reliance only on in-house resources:For every growing global Ecommerce business, it is prudent to allow a knowledgeable and experienced inventory management service provider to take care of the needful. Eunimart seamlessly manages inventory across all the marketplaces; it offers highly systematized and organised inventory management solutions for more intelligent, profitable and scalable operations.
Right Inventory Management Leads to Higher Profits
Proper inventory management is one of the most essential components to avoid stunted revenue growth in cross-border Ecommerce. Though it might seem a daunting task with the aid of inventory management service providers like Eunimart, achieving new heights on international online marketplaces is indeed possible!
Image Source: Staff Force