How To Improve Inventory Management?
As a necessary part of fulfillment, inventory management plays an important role in the global business, especially in the global dropshipping business. How to improve inventory management effectively becomes a bane of business owners because it can directly affect the review of customers.
This page will take a deeper dive into inventory management which will give you some practicable and available tips to a great degree if you want to operate a global dropshipping business but don’t want to be bothered by the same bane.
What is Inventory Management?
Inventory management means the management of the number of goods in the logistics process. And it can track inventory from purchase to sale of goods. The inventory is large, the capital is occupied, and the interest burden is increased. However, if the inventory is reduced too much, there will be a gap. So for most companies, the practicable function of inventory management is to keep the balance between stock and sale so that the orders from the customers can be delivered punctually.
And modern management such as MBA, CEO12, and EMBA think that zero inventory is the best inventory management.
What is Inventory Management System?
An inventory Management System is a database system used by enterprises and units for decision-making and management.
Its main functions are warehousing management, delivery management, receipt and payment management, commodity data management, user information, and customer data management, other income management, and expenditure management, as well as various detailed account queries and other functions.
Why is Inventory Management Important?
How to Improve Inventory Management Level?
By putting your inventory into optimized groups, you can clearly know which products you need to source more in amount and frequency, and which are more important to your business but may cost more and move forward more slowly. Generally speaking, experts specialized in the field usually suggest business owners segregate their inventory into A, B, and C groups. Products in group A usually are higher-ticket products that they need. Products in group C usually are lower-cost products that turn over quickly. Products in group B usually are moderately priced, and the sales amount of the products in group B usually is lower than the products from group C and higher than the products from group A.
Once an order is placed by a customer, professional and reliable 3pl services can help dropshipping business owners track product information in the inventory. About the typical example of a 3pl service, supplier is Honest FulPhilment. As a professional and reliable 3pl service supplier, Honest Fulphilment receives good reviews from dozens of customers from all over the world.
It is necessary for business owners to audit their inventory because it can help business owners to effectively grasp the running state of the company. The work will be good for their business growth.
An unreliable supplier can make trouble for your inventory. To avoid the troubles from inventory, if you have a supplier who is always delayed in delivery or shorts your order frequently, you’d better discuss the issues with your supplier and analyze the reason caused the problems.
In business, 80% of profits come from 20% of inventory. So, it is necessary to optimize inventory management of this 20% of items. You should clearly know the complete sales lifecycle of these products and closely monitor them.
It is necessary for business owners to ensure all staff can receive, inspect and record goods with a strict standard, and that can help you ensure consistency between inventory and sales.
It is necessary for business owners to track sales of each product so that the inventory and the sales in your company can keep a balance. You’d better clearly know the trend of your inventory and update your inventory totals at a regular period, and that can help you effectively grasp the running state of your company.
To provide qualified and enough goods to your customers, it is necessary for you to restock your inventory. As a professional and reliable dropshipping supplier, HonestFulphilment can help you avoid the problem of restocking to a great degree because the company can help you find professional and reliable suppliers, and you needn’t worry about restocking.
It is necessary for you to invest more in inventory management technology because it can help you save more time, energy, and capital in inventory management, and you can spend more time, energy, and money on expanding your business.
It is sensible for you to adopt some integrated technologies in inventory management because it can help you release the burden of your work and effectively improve the efficiency of inventory management. The Honest Fulphilment app can grasp inventory information clearly.
4 Best Inventory Management Systems for your Dropshipping Business
If you want to spend more time expanding your business, it would be wise for you to employ a professional and reliable inventory management system. Hope the following content can give you a reference.
As a professional and reliable provider of the inventory management system, ShipBob can help users effectively improve the delivery time, reduce shipping costs, and improve the overall shopping experience of customers. At present, ShipBob adopts a powerful combination of connected technology, strategically-located warehouses, and dependable fulfillment services. With ShipBob, inventory management in your business will be easier.
As a type of cloud-based order fulfillment software, ShipHero adopts integrated modules for order management, inventory management, shipping management, and returns management. With ShipHero, you can clearly know the inventory state in your business, and your inventory management will be easier and more efficient.
As a type of manufacturing ERP software, Katana allows users to make inventory adjustments and automatically calculate operation costs. It can help users effectively handle inventory management such as raw material tracking, production planning, and stock support. With Katana, your inventory can be controlled effectively, and it is good for your business.
Honest FulPhilment provides 3PL Inventory Management Services. Third-party logistics (3PL) is the process of outsourcing logistics services. This includes anything that involves the management of one or more elements of a business’s procurement and fulfillment activities, including storing and shipping items around the world. You can get more service on Honest Fuphilment.
Honest FulPhilment Provides better third-party logistics services to meet the diverse needs of customers, which is conducive to increasing the number of orders and increasing the rate of customer repurchase.
Inventory management is a bane of business owners, especially for global dropshipping business owners. So, the passage mainly talked about inventory management from its definition to its benefit, how to manage the level of inventories effectively, and some professional inventories management systems that can be worked with. Hope the above information can give you a reference. About inventory management, if you want to more, welcome to contact us.
Inventory Management FAQ
What are the 4 types of inventory management?
The four types of inventory management are just-in-time management (JIT), materials requirement planning (MRP), economic order quantity (EOQ), and days sales of inventory (DSI).
What is an inventory checklist?
An inventory list is a record of items stored in a company. In order to track and control the goods in an organized manner. Can also be used for inspection, as all items in the inventory are recorded here.
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