Ecommerce inventory is the lifeblood of any online brand. For seasoned direct-to-consumer (DTC) brands and those on the brink of launching their digital storefronts, implementing a robust system to monitor and analyze inventory is crucial for maintaining profitability.
This article will delve into the significance of inventory analytics, highlight the key metrics you should be tracking, and illustrate how partnering with ChannelEngine can simplify your inventory management journey.
What is inventory management analytics?
Inventory management analytics involves monitoring and analyzing metrics that measure the flow and performance of physical products. By continuously evaluating inventory, businesses gain valuable insights to balance stock levels with demand while minimizing storage costs.
This analytical approach helps mitigate risks and challenges such as stockouts and dead stock accumulation.
Effective inventory management processes are vital for efficient logistics operations, significantly enhancing inventory control, supply chain efficiency, and overall profitability. This practice enables businesses to make informed decisions, optimize stock levels, and reduce costs through detailed data analysis and real-time tracking.
There are many different benefits of using inventory management analytics software including:
Maintaining healthy stock levels
Audit your inventory regularly and track the key metrics like total units in storage and shrinkage. Having a clear view of your inventory levels at all times will help you make informed decisions about how much stock to order and when.
This way, you will be better at keeping your business operations under control by keeping only that level of inventory that allows you to meet any demand from the customers without having excess and/or obsolete stock.
Avoiding inventory waste
Running a tight ship and building a sustainable supply chain requires accountability for every item purchased. Reducing inventory write-offs and write-downs increases the value of a company’s inventory and, in turn, its revenue.
To optimize inventory decisions, consider implementing tools and systems that automate the tracking of important inventory metrics. These tools ensure that every item is accounted for, helping you avoid leaving money on the table.
Overselling no more
Avoiding overselling is a crucial benefit of using an inventory management analytics tool. Overselling happens when a business sells more products than it has in stock, leading to customer dissatisfaction.
An inventory management analytics tool continuously monitors inventory and updates stock data across ecommerce marketplace platforms to prevent discrepancies. Advanced forecasting features predict future demand, allowing proactive stock adjustments. Thus, enabling brands and retailers to not oversell.
Reducing inventory costs
A significant portion of your assets is likely tied up in inventory, which naturally leads to high costs. Effective inventory analytics can help identify the causes of higher holding costs, capital costs, service costs, and risk costs. Armed with this data, you can take corrective actions to positively impact your bottom line.
Limiting the number of backorders
Excessive backorders can tarnish your business’s reputation. To improve stock availability, you need data and real-time inventory insights to make smart, data-driven stocking decisions. By analyzing historical order data, you can project future sales and stock accordingly. This will reduce stockout costs and minimize backorders.
Simplify inventory management with ChannelEngine
An effective inventory management process is of incredible importance to any running business, and finding the right kind of software to use may help make all the difference. Using ChannelEngine’s inventory analytics capabilities you can easily maintain optimum levels in stocks, reduce costs wherever possible, and improve the overall supply chain efficiency.
Here are a few inventory management analytics features we offer that can help your business:
1. Real-time tracking
ChannelEngine provides real-time tracking, allowing you to monitor inventory levels as they fluctuate. This feature delivers minute-by-minute data on stock movement, helping you avoid stockouts and overstocking, and ensuring you meet customer demand accurately.
2. Integration capabilities
ChannelEngine's platform integrates seamlessly with your ERP, CRM, or PIM system. This integration capability allows you to manage your inventory, sales, and customer relationships under a single umbrella, creating a cohesive and efficient business ecosystem.
3. Multi-warehouse feature
ChannelEngine's multi-warehouse feature allows you to manage inventory across multiple warehouse locations efficiently. This capability helps optimize stock distribution, reduce shipping times, and improve order fulfillment rates. You can monitor stock levels in each warehouse, set specific rules for stock allocation, and ensure balanced inventory levels across all locations.
Find out more about how you can optimize your order and inventory routing with our multi-warehouse management feature.
4. Customizable reporting
With ChannelEngine, you can generate customizable reports tailored to your specific needs. This feature enables you to access the right information for making informed decisions, from stock turnover rates to holding costs and supplier performance.
These are just some of the features that make ChannelEngine an invaluable tool for streamlining your inventory management analytics. We can provide the relevant data and insights needed to optimize your supply chain and enhance overall business performance.
