Handling the inventory of an online business is no cakewalk, the path is rather full of potholes, diversions, and traffic jams. Basically, it is full of obstructions. Inventory can be the most pressing issue of an online business running on multiple platforms if not tracked properly. It is normal to have a few discrepancies because perfection is MYTH! But, as an entrepreneur you need to keep track of your stocks as much as possible because a failure in that section can cause serious loss to your business. The next 7 minutes of reading will reveal every aspect of Inventory Tracking from the consequences to solutions for you to understand the needs of your business. Firstly, you need to know what are the consequences of failure in inventory management.
Before inventory tracking, you need to have a complete understanding of the consequences of failure of the same. Here are the consequences of not taking inventory management seriously:
There can be discrepancies between the data of stock and the actual stock in the warehouse. It is a common problem faced by businesses not keeping real-time inventory logs. The reason for this can be anything like errors in data entry, theft, damage, or misplacement. If the data is maintained regularly, every time there is a dispatch, return, or restocking the chances of such discrepancies, are less. Also, if there is any kind of misconduct, it can be resolved faster.
Both over-stocking and stock-outs are not good for your online business. Overstocking can lead to dead or old inventory which can become difficult to sell, leading to loss. Stock-out situations are the most unwanted ones since no one wants to return a customer who wants to make a purchase and lose money. Failure in inventory tracking leads to avoidable losses like these.
Different seasons and occasions bring different levels of sales. As an entrepreneur, you need to understand these fluctuations because you don't want to miss out on high sales opportunities. Also, some do not show as many sales of particular products, so you also don't want unnecessary loading. Hence, you need inventory tracking so as to maintain optimal levels of stock. After knowing all the above consequences, you need a solution that will keep your business away from all this. That solution is Real-Time Inventory Tracking
Inventory tracking as the name suggests is keeping a track or a log of inventory/stock available in different locations. Now, real-time tracking means keeping a record of the inventory such that it is updated at all times. It helps businesses to optimize stock levels and understand production and restock requirements. Big businesses have access to more manpower and resources which can dedicatedly focus on real-time inventory tracking. But even as a small business owner, it is not difficult. If not manpower, you can use software that tracks your inventory across different e-commerce platforms.
MapMyChannel is one such application that will not just manage your inventory and give you real-time updates but also manage your order, fulfillment, listings, etc. It is like a complete package that will integrate different selling platforms and bring them all on one dashboard so it is easy to manage and update.
While you do not face the consequences mentioned above, there are more important reasons why you need inventory tracking:
Cash flow counts as an important aspect of a business and plays a great role in its day-to-day functioning. Cash flow can be hampered in case of dead inventory because the stock if overloaded and not sold affects the cycle of money. Lack of inventory leads to low sales and proportionate cash flow. Hence inventory management is directly proportional to Cash flow, which in turn affects your business growth.
Being ‘Out of Stock’ is the biggest red flag for a customer. Because amongst thousands of options available online, if a customer finally chooses you and you are not able to deliver, then there is going to be a problem for sure. On the other hand, if you are able to deliver every time they need a product, they will prefer you over others at all times. Hence building a loyal customer base.
Analysis of business performance is possible only with appropriate and accurate data. That data can be collected primarily from the business itself. Also, MapMyChannel can provide you with the data in a structured manner for easy analysis. This analysis can be used to forecast sales, study trends, and be prepared for what's coming forward. Apart from that, it also gives a view of what NOT to do for better performance.
Since you know the importance and consequences of real-time inventory tracking. You definitely want to go ahead with it for the best of your business. The question is HOW! There are two ways in which you can keep track of inventory.
This is very basic, precisely for beginners in e-commerce business. This method involves regular manual updates of inventory regularly. This is pretty outdated and time-consuming. Also, there are ample chances of errors. Under the manual method of inventory management comes:
This is the most popular method of inventory tracking, using software like MapMyChannel which allows you to track your inventory in real time without any miss. It saves your time and above all, you do not have to worry about loss or damage. MapMyChannel allows you to track the inventory from different locations and stores all together so that you are not hassled or confused about any data.
This was all about real-time inventory tracking. Now you have to make sure that you track your stocks and be ahead of the competition to build a loyal customer base who comes to you whenever they need your product. Also, the right choice of software will help you be free of worries of errors. With accurate data analysis and forecast, you can beat others in line and be better prepared for what's coming up.
