From Chaos to Kaos to Control

Overcoming inventory woes in ecommerce

Chaos: A state of complete disorder and confusion.

Kaos: A state of flux, where old structures are broken down and new ones are formed.

Control: If you were in Control your Kaos would already be dead!

At Logistics Cloud Co. we solve inventory and warehouse management problems.

Inventory management is the backbone of any successful ecommerce business. Yet, it's a common pain point that can lead to headaches, operational inefficiencies, waste, and lost revenue. In this report, we'll delve into the challenges of inventory management in the ecommerce realm and provide actionable tactics to help you overcome these obstacles.

Whether you're struggling with stockouts, overstocks, inaccurate inventory, or slow fulfillment, at Logistics Cloud Co. we've got you covered with practical solutions to streamline your operations and drive ecommerce success.

Tactic 1: Embrace Systems & Automation

Tactic 2: Implement an Inventory Planning Process

Tactic 3: Optimise Your Warehouse Operations

Tactic 4: Enhance Supplier Relationships

Tactic 5: Leverage Data for Operations Improvement

Tactic 1: Embrace Systems & Automation

Systematise then automate your repetitive inventory management tasks. Transfer your expert business knowledge into your systems. This will significantly reduce human error, improve efficiency, and free up valuable time for strategic decision-making. Your inventory control systems should include four key systems all integrated together:

1.???? Inventory Management System handling the flow of inventory related money flows into and out of your business so you that you track your costs, sales and profitability. Key modules include Purchase Orders, Sales Orders and Inventory.

a.???? Pure play ecommerce businesses may be able to keep it simple with a webstore and accounting system in place of an IMS.

2.???? Inventory Planning System using time phased forecasting and the data from your inventory system to automate the calculation of purchase orders so that you hold the right amount of stock for the service level you aim to provide.

3.???? Warehouse Management System tracking physical stock in real time with efficient mobile workflows using barcode scanning for receiving, put-away, replenishment and picking.

a.???? AI Optimisation for WMS is now available to speed up your warehouse with faster picking packing and shipping.

4.???? Freight Management System automating the consigning of shipment data from your WMS and sending it to your carriers.

5.???? (Bonus) If your business has a lot of customer returns as part of your business model you may need a Returns Management System to streamline your customer returns process.

Key Actions for Automation

1.??? Evaluate your current inventory management processes and identify areas that can be systematised and automated, such as order processing, purchase planning for stock replenishment, and warehouse processes. Robot automation is now a viable option for even smaller businesses.

2.??? Research and invest in inventory management software that aligns with your business needs and budget. Look for features like real-time inventory tracking, automated purchase order calculations, and integration with your ecommerce platform and accounting system. Some systems to look at include: Cin7 (Core or Omni) and Unleashed.

3.??? Train your team on how to use the new automation tools effectively. Provide comprehensive training sessions, time to learn, and ongoing support to ensure a smooth transition. Get expert implementation support and consider hiring a project manager if you don’t have the skills or time to run the project in house.

4.??? Establish KPIs to monitor the performance of your inventory systems and adjust your business processes as needed. Stay proactive in addressing any issues or inefficiencies that arise.

5.??? Continuously explore new automation technologies and tools to stay ahead of the curve and optimise your inventory management processes further. Key technologies include Returns Management, Inventory Forecasting & Planning, Warehouse Management, WMS Optimisation, robots and automated storage and retrieval systems.

Recommendation

Embracing automation is not just about saving time and reducing errors; it's about empowering your team to focus on strategic initiatives that drive growth. By investing in the right automation tools and technology, you can streamline your inventory management processes and position your ecommerce business for long-term success.

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