Multi-channel inventory management is one of the most difficult tasks in e-commerce. Regardless of the channel via which orders are placed, efficiently satisfying demands needs knowing how much stock you have. And to execute and know all this, multi-channel inventory management must be mastered. Otherwise, future repeat purchases are in danger due to carrying expenses, reverse logistics, and a bad customer experience.
In this article, we will see how multi-channel inventory management helps in knowing about stock requirements and customer satisfaction.
What Is Multi-Channel Inventory Management?
Multi-channel inventory management, often called multi-source inventory, is the procedure by which organizations keep track of and account for orders from numerous sales sources. It includes marketplaces, e-commerce, retail, and wholesale.
You Need an Inventory Management System
An inventory management system synchronizes your entire business with the goods it sells:
- Operations managers can use inventory KPIs to boost efficiency by making the necessary modifications.
- Purchasing managers can see how much and how frequently to order from vendors.
- Managers of warehouses may quickly assign jobs and observe where things are located and how they are being handled.
- Staff in the warehouse can complete their tasks swiftly and without relying on numerous systems.
- Those working in retail can assist clients swiftly with the most recent information.
Benefits of Multi-Channel Inventory Management
The following are some advantages of using a multi-channel inventory management solution:
1. Real-Time Visibility and Synchronization
To fulfill orders across channels, you need to see the locations and quantities of your inventory. Manually updating and synchronizing inventory counts between locations and platforms is impossible. Multi-channel inventory management prevents costly out-of-stock, deadstock, and return orders.
2. Improve Inventory Forecasting
Brands can better measure their inventory turnover ratio, an important indicator of their business's health, with improved inventory visibility. Profitability is increased by using this kind of knowledge to inform future restocking and product pricing decisions.
3. Place Inventory Closer to Customers
You need the appropriate inventory at the right places to transport goods more quickly and affordably. Having several carefully chosen retail locations or fulfillment centers enables brands to effectively route orders to the fulfillment center closest to the customer.
The Inventory Management Process
The inventory management method aims to keep the least amount of merchandise on hand possible while giving customers a top-notch experience. Your team is the nucleus of the procedure. It will only work if the team is committed to the process. It requires:
- Improved training and instructions
- Consistent feedback
- A secure work setting
Best Practices for Inventory Control
Businesses must use inventory control to maximize the use of their stock. Incoming and existing stock must be balanced, and there must be thorough assessment, forecasting, and ongoing development.
Inventory management aims to maximize profits with the least amount of inventory investment while maintaining high levels of customer satisfaction. The goal of effective inventory control is to maintain a balance between sales and stock levels so that company:
- Never run out of stock
- There can always be a good amount of goods on hand
- Perishable items sold on time
- Minimizing harm, loss, or theft
- Products are kept in good storage condition
Inventory Management KPIs
Since inventory management is the backbone of operations, revenue, and customer satisfaction, measuring its benefits is important for retailers:
1. Rate of Inventory Turnover
This measure indicates how rapidly your inventory is consumed. A high inventory turnover rate indicates that you are making good sales and using up all of your stock very rapidly.
2. Carrying Inventory Cost
This metric measures the annual cost of storing your inventory as a percentage of the value of your entire inventory.
3. Inventory Accuracy
An important statistic that provides information on potential theft, unreported damage, and procedure adherence is the accuracy of your recorded inventory compared to your actual inventory.
Managing Your Warehouse
Here are some best practices for managing your warehouse operations:
1. Safety Is the Key
While focusing on reducing accidents and injuries may seem like a sensible strategy, creating training in advance for new hires and ongoing training for all staff would be a more successful (and proactive) approach.
2. Maintaining Equipment
A certain amount of caution must be taken in a warehouse where equipment might cost thousands or tens of thousands of dollars to protect that investment throughout the working period.
3. Workflow
Efficiency can be improved in a warehouse by fostering a sense of workflow. This further helps to streamline better processing of workflow and a smooth chance of investment in automation technologies.
4. Picking
Travel time can easily take up 50% or more of the time spent picking orders. Your aim should be to minimize the distance needed to be traveled to shorten the time spent picking.
5. Packing
It goes without saying that packing stations should be set up with tools and supplies around for quick access.
6. Put Customer's Need Frist
All of these above measures are being done to improve warehouse operations and provide a better client experience. Do not overlook that!
Choosing the Right Inventory Management Software
Finding the best multi-channel inventory management software that satisfies your needs is difficult. While many products available on the market will accomplish the job they can range in price from free to hundreds of dollars per month.
Don't just search for "inventory management software" on Google; instead, learn the proper strategy so you don't look at hundreds of results while trying to find your perfect match.
Upgrade Your Multi-Channel Inventory Management With TranZact
It's important to understand that manual inventory management is insufficient for proper stock management. Regardless of whether you run an online store that sells products across multiple channels or you're thinking about changing the way your company operates, having multi-channel e-commerce inventory management is your best bet.
TranZact can help Indian SMEs improve in multi-channel inventory management by structuring the company’s operations and increasing customer satisfaction with its inventory management software.
FAQs on Multi-Channel Inventory Management
1. Why is multi-channel inventory management important in India?
As e-commerce and other sales channels become popular in India, controlling inventory across various channels is essential for improving reach, customer happiness, and gaining a competitive edge.
2. Is there a free multi-channel inventory management solution available?
Yes, TranZact offers free multi-channel inventory management solutions to Indian SMEs. However, businesses can opt for a more sophisticated feature with a monthly membership.
3. What is multi-channel listing inventory management?
You can list products and sell them simultaneously through several sales channels using a multi-channel listing and inventory management system. In order to prevent overselling or stockouts, accurate inventory synchronization is essential.
4. How can I streamline multi-channel inventory management?
Use inventory management software to automate inventory changes, interact with various channels, and take advantage of a real-time view of stock levels across all channels.
5. How does multi-channel inventory management improve order fulfillment?
You can process orders quickly, allocate stock from the proper location, and reduce shipment delays or cancellations by coordinating inventory levels across channels.
6. Can multi-channel inventory management help with demand forecasting?
Yes, it offers useful information on how sales performed across various channels, allowing you to see trends, forecast demand, and adjust inventory planning accordingly.
