As per an article by TCS on SKU Rationalization, facts confirm that up to 35-40% of the total inventory is stuck in the non-performing, slow moving SKUs, whose cumulative contribution to sales is less than 5%.
With the above information, you can realize how your inventory management directly impacts the bottom line results. And, when speaking about managing inventory, SKU(Stock Keeping Unit) is considered to be the key for maintaining an effective inventory management cycle for your business.
So does your inventory management practice involve SKUs? If not, let me throw some light on its results that you may not be aware of.
1. Stock transparency
Your business will deal with stock ins-and-outs on a daily basis, hence having a system to track them becomes very important to maintain correct stock levels(no more, no less). Allocating SKUs for your inventory will make it easy to determine the actual counts and help you always perform an effective inventory management practice for your business.
2. Easy stock identification
When dealing with few products, it’s possible to identify those slow moving products, damaged products, missing products or even thefts. However, when your business grows, you will have to deal with more products in order to grab every opportunities that come one’s way. This is where SKU makes it easy and quick to track stock and keep levels maintained, which automatically eliminates the risk of unforeseen events.
3. Stock replenishment
You need to ensure products are procured and available to customers all time, in order to keep the business going on. But what about those cases when your product shows as stock available, but after the customer places the order, you realize that particular inventory is not available in the warehouse. Such situations directly hampers bottom line results, and I’m sure you won’t like that to happen. Therefore, automating your inventory management processes and adding SKU to each product variations will eliminate such ugly and costly situations. Also, automation will allow you add threshold limit for every product and ensure the levels of inventory will never get out of hand.
4. Safety lock
Tracking inventory on daily basis is important for practicing an effective inventory management flow. This is done to ensure stock levels of the warehouse are in-sync to stock levels of the inventory management system. And, by adopting SKU management will help you allocate unique identifications for each product variations(size, color, etc.) making it easy to reconcile stock levels for your business.
5. Smarter stock investments
Lastly, an effective inventory management practice in place can help you save hundreds of dollars. Adopting SKU management you don’t need to worry about dead stocks scenarios, as you’ll get a clear picture of your good and bad ones. This way you can take instant inventory decisions and use your capital sensibly.
Source link: http://www.tcs.com/
Manage seasonal inventory without a hassle...
Whether you’re an e-commerce seller or brick-and-mortar store retailer, staying on top of your inventory game can be quite a challenge. And if you’re dealing with seasonal inventory, then your inventory management skills need to be a notch higher.
Seasonal inventory is stock which is in demand during specific periods of time like the holidays and the different seasons.
Seasonal inventory management isn’t the same as managing inventory of products that sell throughout the year. With such product categories, managers need to be proactive in efficiently buying and handling their stock.
Proper identification of seasonal products and subsequent planning with regard to their buying is key here. Not only this but making the necessary preparations for your inventory management system is important too. This can save time, money and confusion when the time arrives to reset warehouse racks and retail shelves for the upcoming season. So here are a few specialized ways to tackle seasonal inventory management.
Identify and Segment Seasonal Products
First and foremost, you need to identify and tag your merchandise. You can categorize by season, year, or peak periods. This can help you in a plethora of ways as having a clear idea about current season’s inventory is important to maintain inventory turnover and to prevent over-ordering in the next season as well. For example, when you have to re-order for next summer season, knowing how many dresses and shorts you already have in stock will enable more accurate re-ordering.
Markdown Peak Periods
The next step after identifying the seasonal merchandise in your inventory is to analyze when they are most in demand. This can be done by looking into previous sales data and purchase history of those products. Due to the dynamic nature of the fashion industry, demand for fashion changes with time. What sells in summer will not sell in winter. You must have a structured demand forecasting plan of what sells when and in what quantity for efficient seasonal inventory management.
You need to have a proper plan in place in order to clear out space in your warehouse for incoming items. Mark down those peak periods and schedule reorder patterns accordingly. For example, raincoats will be in demand during monsoon months but you will probably have to order them mid-summer so that by the time monsoon arrives, you have your stock ready for sale.
Don’t forget the Slack Months
While figuring out the peak season, it is sensible to make note of the slack period too. The slack period will give sellers time to get their seasonal inventory ready for the upcoming season. If you are a manufacturer, making your own apparel, then it’s a good time to start producing an entire season in advance.
With this, you also need to set the ideal time regarding both the commencement and end of sales. A good time would be just 2-3 weeks before the season is about to end. This is when you should start rolling out your discounts, offers and package deals in order to liquidate your seasonal inventory to an optimum level. Remember, don’t wait until the end of the season as your rivals will also be trying to get rid of their seasonal inventory during the rush hour.
You can predict the demand for particular products during peak season by looking closely at past sales data. This will help you in gleaning much information about which are your bestsellers and products that did not make the cut. For example, if boots were the showstoppers last winter, it would make sense to purchase more stock for boots in the coming season.
However, there’s a catch here. If last year boots were in fashion, this year it could be shoes that are all the rage. Thus, ordering much of boots will be a waste.
Another important thing, if you have an advertising strategy to hype up your seasonal inventory, then make sure you have enough stocks on your store shelves. Because nothing is more disappointing than excited customers coming to your store and going empty-handed.
Inventory Management System for Seasonal Inventory
Seasonal inventory can be tricky to handle, and if not managed efficiently, you end up with overstocking or understocking products, reduced cash flow, decreased sales and loyal customers slipping through the cracks.
Having a good inventory management software that can produce customized, accurate reports on what has been successful in the past and products that don’t need a PO to raise can make your task much easier.
The major principle behind managing seasonal inventory is closely monitoring the past performance of products and present trends since both have an impact on future sales. But as is obvious, it’s nearly impossible to keep track of inventory manually on Excel sheets, not to mention, it’s a hectic process. To keep yourself from getting into a soup, you can utilize the talents of an inventory management system for accurate, faster and smooth management of seasonal inventory.
What is inventory management?
Small business has the potential to crunch the numbers and reach sky-high limits. All they need is proper guidance in managing the key aspects of the business.
Mostly all small business has one specific pain point, and that is “Inventory Management.” You may ask, “Why inventory management?” Because its the epicenter of all other business processes. Every aspect of a business, whether it be purchases, sales, shipping, returns, etc. are directly or indirectly related to Inventory Management. Neglecting this is like signing for your own doom.
Where does it stand in order fulfillment?
As mentioned earlier, inventory management is related to every major aspect of your business. As such, one can say that the inventory management system stands as a priority In order fulfillment. This is due to the fact that in order fulfillment, retailers make sure their customers get the right product delivered on time. To achieve this goal, retailers heavily rely on inventory management to fulfill their customer’s demands.
A minor fault in your inventory management system, and you can end up selling a product you don’t have in stock.
Importance of inventory management in small business
- Failure Story
We, as humans, make mistakes. It’s no surprise that we all learn in life from our mistakes. The mistakes of others are like a warning symbol for us not to travel down that road.
Not only small businesses but giant companies have been a victim of taking inventory management lightly. One such example of poor inventory management is from “The Hershey Company.”
Hershey Company is one of the world’s most recognized chocolate manufacturers.
They experienced a massive loss when $100 million worth of Kisses and Jolly Ranchers inventory failed to reach stores on time for the Halloween season.
- Better demand forecasting
The new year is coming soon. All the shopping enthusiasts are gearing up for this festive season. How is your preparation going on?
You must be probably filling up your inventory with the latest stock wishing that people love them and buy from you.
Well, before you start filling up your inventory, ask yourself:
Importance of Inventory Management is that it holds all your previous data and with the help of AI can guide you to answer all these questions with ease.
- Let the inventory flow (implementing FIFO)
Another key Importance of Inventory Management is, it helps you to implement FIFO. Why is it important?
Because when you invest in some item and have it in the stock, you want to resell it and make money out of it. Over time, if you forget about the item, it’s just going to be sitting over there and eat up your valuable inventory space.
Inventory Management Software eases up the process without human intervention in the process. Thus, saving you from having dead stock in your inventory.
- Can manage multiple marketplaces from one instance
Inventory Management Software can help you in managing all your marketplaces from one single dashboard. This will help in safeguarding you from overselling. Moreover, the inventory management system integrates with your accounting software and shipping partners. This eases your task as you now have one unified platform to look at all the major aspects of your business.
Let us organize! How do these words sound to you, ”Tempting and challenging”!
Are you having trouble tracking your inventory and organizing sales?
As rightly mentioned by Joseph Brandt, “Control the Inventory - Control the Profits!”
Inventory management has the power to organize and track your inventory in a much efficient and error-free manner. Inventory Management in eCommerce has evolved to be one of the most sought-after applications in the field of technology and contributes directly to becoming a user-friendly platform. They hold the utmost respect and valuable offerings in the field of eCommerce and Virtual applications - To name a few chapters are Amazon, Shopify, Kindle, Byju, and many more.
Think about it. What is the most challenging attribute you face while dealing with various eCommerce channels? Let me guess, keeping a track of orders, managing purchase inventory, stocking, and handling or tending to the products. Are your inventory management problems affecting your time, profits, and energy?
The best Inventory Management speaks for itself; it comprises and specializes in providing a one-stop solution related to simplified product management, inventory visibility, warehouse management, Just-In-Time operations, barcode or RFID tagging system, centralized database for inventory, and to top it all - it should generate inventory reports as well. All this just by a Click!
Are you searching for the best inventory management software for eCommerce?
Well, I must say, you have come to the right place!
Let’s discuss in detail what consists of the best inventory management system.
Features of the most suitable Inventory Management
Transparency and Quick Visibility - A wonderful feature that allows the user to view, edit, modify and synchronize the entire inventory throughout all the integrated channels. Orderhive serves as a single accessibility platform with real-time synchronization.
Automation - One of the best features of Inventory Management is the automation process that assists the clients to perform their mundane tasks.
For Eg: Have you received an Auto-Generated Mail while placing an order stating ‘Thank you for placing an order with us. Your order will be dispatched shortly and you will receive it within 5 -7 working day’ - This is Automation.
When you buy a shopping card from a store (let’s assume Walmart), instantly a message is delivered on phone stating ‘Thank you for registering with us.’ - This is Automation.
Automation is a process that not only helps in client interaction, but it acts as the prima facie for the company and performs activities for their growth and development. Automation tracks and sends messages based on your customization.
Stay Updated with the Inventory Level - Tired of physical verification of inventory? Let us show you a feasible and easily manageable feature that provides the user with accurate inventory figures and tracks the incoming and outgoing products. A platform that assists in providing information related to inventory levels without having to physically verify them at all times.
Just In Time Management - Eliminate the scope of over-stocking and inventory stock costs by having accurate information determining the exact requirements.
Simple, Uncomplicated, and Precise - The software must provide all necessary information under one roof. Ensure the application is simple to understand and easy to operate. Also, the most important aspect, the charm of the application is that it should not omit a single information. Despite being uncomplicated, ensure all the information is covered.
Barcode Generation - Ease the uphill battle of manual complications and provide complete product catalog, pricing options, categorize the products, distinguish the sellers, and generate barcodes for them. A platform that provides information on the stock level and tracks the stock meticulously. Phew!
Inventory Reports - Report generation is an important aspect of any platform. For instance, the software is able to run each and every update but it fails to generate reports. The difficulty level enhances drastically as a user cannot track his sales figures, inventory, profits, and much more. The software should be capable to provide information and regular reports related to purchasing, sales, history and inventory audit. Moreover, the most user-friendly option is where the software provides a ‘Download’ option as well. Yes, you heard it right! You can not only view but also download reports anytime at your disposal.
This is the basic difference between human work and computer-generated applications - They are error-free, less dependent, and updated (all the time!!).
If you are looking to try your hands at this amazing software, let me introduce you to Orderhive: An Automation Software to Fast Track eCommerce Operations. And they surely work hard towards keeping it the same way.
What do they offer? Orderhive is amazingly good at integration and automation. You want to know the plus side? They also assist in customized automation and are regularly working on their clients' queries and suggestions. Setting themselves apart; they work to secure happy and contented clients across the globe.
Moreover, as there are numerous problems faced by the eCommerce Industry, Orderhive contributes by providing accurate solutions, to name a few:
1. Eases the pain of overstocking
2. Forget the Past, Predict the Future Forecast and Requirements
3. Inevitable Customer Support
4. Reduce Human Intervention and Cost
5. Automate Tasks and Up-to-Date Inventory Levels
6. Categorize Stock and Feed Necessary Information
7. Analytics and Inventory Reports
Is there still room for doubts?
Let us hear from Orderhive clients and see what they have to say.
Daniel Kudla from designer-homeware.co.uk says
“Works great. We have been looking for a multichannel management system for a long time. I can confirm that Orderhive was a great choice. We use this system to link Amazon, eBay and Shopify store. The system is simple and saves us a lot of time. Great customer service too. A lot of handy reports, including stock valuation, low inventory, etc.”
How am I so sure?
Confidence is an attribute that develops from within and Trust is an attribute that is earned from providing good service. Orderhive has the pleasure to be rich in both - trust and confidence.
So what is Inventory Management and why is it essential in the growth of your business.
Did I catch your attention - Well, words can be overwhelming, why not we try it for ourselves. Check out our trial version of the Orderhive Inventory Management Software and be assured the trial version comes with ‘0’ payment and no requirement for card details. It is just a trial version for you to understand the difference Orderhive is making in our client’s lives.
Great Business comes with great Inventory Decisions. If your inventory problems are not resolved soon, money is not put in good use. Wastage of time, energy, and money will enhance and in business - Time is Money. So, let us not waste any more time and visit our trial version to explore the vast opportunities.
Automation entering industries with a thrust has resulted in manual inventory management getting obsolete because of its cons with the progression of automated inventory management software into retailing. Drawbacks of manual inventory management like human errors, excess time-consumption, no or inaccurate need prediction, misplaced-unused-or-outdated inventory, inventory shrinkage, decentralized control, lack of real-time updates, etc. are proved to be the obstacles in the smooth functioning of the retail processes. From receiving the order to shipping it, doing each task manually has become tedious resulting in a big need for inventory management software for retailers.
Inventory management software is a software system for tracking inventory levels, orders, sales, deliveries, and even accounting, reporting & invoicing records. More and more retailers now are adopting automated and cloud-based inventory management software - as 1. They are a necessity 2. They are affordable, easy-to-use & secure.
Orderhive is one such SaaS-based Inventory management software that centralizes all your business channels—inventory management, order processing, SKU management, shipping, invoicing, and tracking—everything—into one simple, easy-to-use piece of software. Orderhive inventory management software is highly scalable, enabling clients to meet existing and future needs.
What sets Orderhive apart?
Orderhive offers all the features of an inventory management software along with added functionalities, integrations and amazing support system. Below are some highlights of Orderhive software:
Inventory automation & marketing automation can be induced using Orderhive by auto-synchronization of multi-channel order, shipping and inventory in real-time to keep inventory levels optimized. Automatic order placements and updates, access to shipping details, automatic FBA stock update, auto MCF scheduler and adding desired automation MCF rule are possible using an automated inventory management software like it. Automation saves time and helps in cutting down the costs.
Multi-channel and warehouses
Multiple channel selling becomes easier as it all can be synced and interlinked using automation and custom controls. Inventory can be managed across multiple warehouses/locations seamlessly with keeping all the control with you in one place.
Most real-time Inventory updates
Managing multi-channel stock update gets complicated when done manually. But thanks to real-time inventory synchronizations, inventory management softwares like these are equipped with features which automatically updates stock within seconds on all the integrated marketplaces when certain stock is added or sold. Real-time inventory updates help save time and power to acquire more business on multiple platforms. It is no exaggeration that Orderhive’s syncing is among the fastest in available inventory management software category.
Kanban process - Going Lean
Kanban process is the revolution in businesses. It has a visual scheduling system using just-in-time (JIT) production that tells you what - when - & - how much to produce an order in optimum sizes and time. Kanban view uses visual cards instead of text that are easier to be dealt with and helps in maintaining the optimum amount of stock in the inventory. Kanban system controls the entire chain – from suppliers to the end-sellers. Orderhive is among the first such software to adopt lean engagement and dashboard view.
Kanban: “To Do’’ —> “On-going” —> “Completed”
Integrations with prominent eCommerce service platforms like Shopify, Amazon, Rug, WooCommerce, etc as well as with a variety of local and leading ones are offered to pick the suitable ones for your type of business and inventory styles. Multiple integrations can be added and controlled together. Integration with 300+ shipping providers including notable ones like FedEx, USPS, UPS, etc is supported in the software. The inventory management software automatically updates domestic and international orders status and shipping information back to the channel after generating and print labels of multiple shipping carriers. It also manages dropshipping businesses with the same ease, with a dedicated interface for order processing through dropshippers.
24X7 support team
This is rare! Hand-held support specialized in inventory management tactics and backhand operations, in-and-out, is made available 24X7 at client’s service. The technical support team also provides personalized demo if required although otherwise, the software has a very easy-to-use interface and is self-explanatory & user-friendly.
Orderhive enterprise is an all-in-one cloud-based enterprise order, inventory and shipping management software with complex automation, high security, and 24/7 priority support. This plan works best if you want customized software, specific features, increased number of integrations and complex processes.
Plans that fit all business types
The software comes with a range of plans having different features and pricing which makes it a fit for all business types and sizes. There are plans for start-ups, growing firms, SMBs, and large corporates too. It's a meal that can satisfy everyone’s hunger! The software also provides a free 15-day trial to get the quintessence of it.
There are n number of Inventory management softwares available but it’s quite rare to find one that offers features which cover all of the end-to-end processes and hence Orderhive has been rightly tagged #1 in the market.
Lastly, the latest good news is that Orderhive is currently offering flat 50% off on its monthly subscription plans on signing up!
Let me tell you a story, a story of two friends Jim and Kim who challenged each other to start their own business individually of selling ‘Laptops’ online.
Both Jim and Kim had done their thorough research on ways to sell, where the market reaches more, how to manage their inventory, shipping partners, suppliers etc.
So after all this research, as Kim’s family members were into online business, they suggested him to create and start selling on his own’s e-commerce website. Whereas on the other hand, Jim had a little or no idea about how to sell online, so instead of getting along with own online storefront, he was suggested to sell on a marketplace like Amazon.
Now, here comes into the picture Amazon’s FBA (Fulfillment by Amazon) and Self-Fulfilment. Jim decided to start his business by selling on Amazon’s FBA and Kim started his business by launching an e-commerce website which can be also termed as Self Fulfilled.
Before coming to the conclusion of whose choice was better — Jim’s Amazon’s FBA or Kim’s own e-commerce website (self-fulfilled), let’s discuss in brief what Amazon’s FBA and Self Fulfilled for online selling means.
Amazon’s FBA (Fulfillment by Amazon)In layman language, FBA means: you choose the product that you wish to sell online, and everything else will be taken care by Amazon.
“Everything means every single thing, as the smiling sign of Amazon denotes A-Z”
In a survey by Amazon, it was reported that sales increased by 86% after sellers started using FBA.
As the name says Fulfillment by Amazon means your orders are completely fulfilled by Amazon. A detailed understanding in this article would get you more clarity to it.
So, Jim has made all plan and he’s ready to start his online business. What initially Jim is supposed to do is to create an Amazon seller account, then add FBA to it.
After completing these steps, Jim has to list all the products (here Laptops) in the Amazon catalog. Once the account is set up, Jim is all ready to sell through FBA.
Now let’s look at the few benefits that Jim or you would get using FBA.
Advantages of FBA:
To become an eligible primer seller, FBA is the first stop to get a Prime tag. Once you’re an eligible prime seller, your products get a place on golden prime shelves where millions of Prime members can view the product.
On the top of all these things, you’ll increase your odds of winning the Buy Box.
Let me provide you the numbers why Amazons’ buy box is so essential for sellers.
Storage, Inventory, Shipping & ReturnsDon’t worry if you don’t have access to a large warehouse or storage space for your inventory. With FBA you won’t be needing any extra space, as Amazon’s fulfillment center will store all your inventory.
Fulfillment centers are present widely across multiple countries and cities, thus this gives you as FBA seller ability to select the fulfillment centers based on products you’re shipping and from where you are shipping.
So if Jim creates an inventory which is spread across multiple fulfillment centers all over the country, then Jim’s customers who buy his product may receive it faster than the sellers, whose inventories are located farther away.
Moreover, the FBA products which are priced over a certain value becomes eligible for free shipping as per Amazon’s norm.
An FBA seller can also reduce his overall shipping cost by opting for co-mingling service. How?
As I said, Amazon has multiple fulfillment centers across the world. Therefore for Jim, it becomes easy to target multiple countries/cities as Amazon will be able to ship the orders from the nearest fulfillment center where the same product is available and with the same packaging. Shipping cost will be saved here!!
When it’s about returning a product Amazon warehouse workers are there to do their work quickly. Though your buyers have 30-Days to return a product back even after they’ve received a refund. Amazon will accept the return with no questions asked — until or unless the product is damaged.
Disadvantages of FBAAmazon also needs to pay their employee who carries out all these (almost an entire e-commerce business) tasks of yours.
What is Self-Fulfilled?Yes !! Self-Fulfillment means you are your own boss. You are the decision maker, in which the whole process of order fulfillment is taken care by you only.
There wouldn’t be any dependencies for Kim as he’ll be in charge of how the product is stored, packed and shipped. The entire process of holding and managing the inventory as well as choosing a reliable logistics partner for packing and shipping the orders will be on him.
Now let’s see what are advantages or disadvantages that Kim or you would face if the Self-Fulfilled is the way chosen.
Advantages of Self-Fulfilled
Disadvantages of Self-Fulfilled
ConclusionThe ball is in your court, you need to decide if you want to do your business like Jim or Kim. However, both Amazon’s FBA and Self-Fulfilled are great to do business, but depending on your product and its value you need to choose.
If you’ve just started selling online, then it is recommended that you collaborate with Amazon’s FBA. Because initially, you’ll get to know what are the risks involved, market trends, your target region etc.
And, once you have established yourself in the market (i.e. you’re growing big) and you know what type of difficulties may come and how to resolve them, then you can shift your business to get complete control on everything by ‘Self-Fulfillment’.
With the advent of great online retail powerhouses, selling products online is becoming a lucrative option by the day. And when you start thinking about selling online, Amazon is definitely one of the first marketplaces you would love to start off with.
Amazon Reaches approximately 3.5 Million new users across the globe everyday and makes a sale worth approximately $56 billion every quarter. With sellers list growing, this very minute is your perfect time to start selling on Amazon, and learns about strategies of growing your business on Amazon. One of the fastest and easiest routes to growth on Amazon with absolute 0 extra initial investments is Amazon FBA.
Fulfilment by Amazon is a 3rd party Logistic service provided by Amazon, where you stock some or all of your products in an Amazon Fulfilment Centre near you, and then Amazon Takes care of Storing those products, shipping those products and fulfilling orders that you receive on those products.
Amazon FBA not only helps you improve your sale but also reduces the cost of operation. You can read more about benefits of Amazon FBA here.
Let’s learn how to add products on Amazon FBA
The fashion retail industry has been transforming largely due to aspects like fast fashion and online retail. The transformation is mainly noticed when you see the gap between the red carpet and retail stores diminishing. The kind of outfit your favorite celebrity wore last week to a gala event will be available in online stores the following week. However, this feat was not achieved overnight but required a cohesive and rapid inventory management from retailers. The inventory analytics of a fashion retail store can rightly suggest the frequent changes in the fashion and style, but the industry-based trends are also very important to thrive in the market. To understand this massive wave of change, let’s look at the five major trends that are driving the fashion retail industry by the storm:
The physical and virtual both storefronts of a fashion retailer carry equal value in today’s world. The customers are shopping both from the stores in their neighborhoods and online e-commerce applications in their phones. Fashion retailers have to make sure that their presence is strong at all possible sales channels to increase market penetration and brand reach. Here is where Omnichannel retailing comes into the picture. The use of an inventory management software can help establish with multiple channels easily from a single dashboard.
The competition in fashion retail is rising all over the world and the brands that provide the best offers and features only thrive in the market. A cross-channel sale is done over both online and offline channels. In this, if a customer has purchased online and wants to exchange the product he/she should be able to exchange it on the nearby store. The inventory management software can help here as well in the integration of online and offline channels for cross-selling.
Mobile Devices for Improved In-Store Experience
Retailers are increasingly using mobile and other integrated platforms to improve the in-store customer experience. The IoT-enabled infrastructure and chat-based tools are used to provide shoppers with access to information, service support, and navigation assistance. According to a 2017 RetailDive study, 77% of shoppers use mobile devices to search for product information while shopping in brick&mortar stores, and only 35% are willing to consult an in-store salesperson. Brands will want to prioritize creating mobile tools for shoppers and associates that offer in-the-moment information to smoothen purchase decision. Mobile-scannable codes on the product can be used by customers to get product-related information. Store owners are utilizing Beacon & Bluetooth technology and digital signages that use data by approaching shoppers’ smartphones to create specific content messaging resulting in a more personalized experience, thus leading to more sales. Signals of the shift from e-commerce to m-commerce are bright.
Big Data and Analytics
Every piece of data related to customers is useful, which includes details like the number of visits in a month, amount of purchases, most and least purchased product, etc. Big Data – data obtained from millions of users in bulk – can be analyzed and used for improving the provision of the right products and services to the customers. Retailers are increasingly leveraging the power of Big Data for making accurate strategic decisions while enhancing customers’ shopping experience. Big Data analytics enables retailers to comprehend what their customers are looking for throughout their buying journey, while also predicting the customer demands so as to accordingly adapt to the market changes. Moreover, data analytics also enable retailers to determine product prices more accurately as well as predicting the right time to change the product pricing.
The combo packs are available for everything in the market from chips and coke to shampoo and hair conditioner. The bundling of two products that are used or purchased together can help the retailers sell more, fashion retailers are also using this technique. The pairing up of matching trousers or skirts with a top-wear and offering it as a combo is a very effective technique to generate more sales. It is required that the combo offers are well advertised to reach the maximum customers and ensure maximum sales. Product Bundling has set its place as one such trending practice in the market right now. Through this strategy, profits can rise due to the collective purchase of more than one item. With the sale of more items overall, consumers enjoy decreased prices and businesses see a faster movement of inventory off their shelves.
The brands in the fashion retail industry have to follow current trends for staying ahead in the market and to boost their revenue. The trends like omnichannel retailing are already big in the market and can be implemented easily with the use of an inventory management software. Other trends like the use of smartphones for scanning product labels still have a long way to go, for making it to the mainstream market. Following these trends can not only help the fashion retailers in getting ahead in terms of sales but also in enhancing their brand image and customer loyalty on a large scale.
Adding a personal touch to any product makes the customer feel connected to the product and increases the chances of its sale. Currently, the majority of customers of fashion retailers are millennials who are more inclined towards products that resonate their thoughts or interests (also, they can act as a cool conversation starter!). This is so because of the increasing economy of instant gratification and fast fashion. Millennials want what they like and not what they are offered. Also they are highly influenced by the style of their favorite celebrities. The future of clothing is complete customization of the products as per the taste of the consumer.
This concept was very much seen when it comes to specialized boutiques and fashion designers. But, in the retail business, the same merchandise was offered to all the customers. The times are changing the retail giants are time and again introducing personalization in clothing to acquire larger market share. The introduction of a proper retail analytics software can largely help fashion retailers of all sizes in providing customized clothing to their customers. The trend of personalization was studied by Deloitte, and the results of the research are:
Personalized Clothing and Small Retailers
Not only big names like H&M, Uniqlo and Zara but also small retailers can use personalization to make the most out of their investment. Customers agree to pay more not just because of the personalized product but also the personalized experience that they receive. The big brands mostly provide a personalized experience through machine-made products and computerized systems. The small-scale businesses, on the other hand, can provide a personal touch. As they are mostly the local stores knowing the customers in the neighborhood. As suggested above, many customers are willing to pay a higher price for a personalized product. So, in terms of personalization, small retailers do not have to compete with retail giants on the price.
Before some years, personalization by small retailers was limited up to alterations in terms of size and minor changes in embroidery, etc. These days order processing software enabled with technologies and Artificial Intelligence that can largely facilitate the provision of personalization products. These technologies also can help in studying inventory analytics and implement personalization accordingly. Analytics are largely helpful in customization as they represent the patterns of purchase of the customers and can largely identify the scope of personalization in a product. The hottest selling products can be sold as they are but the products with fewer sales can be put up for personalization. This software can be deployed cost effectively and largely support in providing quality service and a delightful experience to the customers.
Customized Inventory Management Software for the Customized Clothing Business
A customized software like Orderhive Plus facilitates its users with customized inventory management software that offers high-volume features and workflow. It offers accurate data aids retailers in archiving and optimizing inventory effortlessly. With precise BI analytics and tools, optimizing inventory has never been easier. It also helps you in cutting down costs, saving a fortune on labor costs and helps in managing products efficiently across multiple channels.
The purchase of personalized clothing is often observed around festive occasions, movie launches, and a spike in customer phenomenon. Contrary to large brands, growing startups do not need to worry about large-scale production, which enables them to experiment and invest in futuristic technology. Furthermore, they can have the upper hand in customization due to their exclusive approach and attention to every customer. The use of a proper retail analytics software will help small and medium-sized retailers in providing efficient customized clothing solutions to their customers, ensuring long-term loyalty.
Setting up an multi-channel business is a challenging task, as you are not operating from one store, or one location, or one city, state or country. The logistics of it are daunting. Despite of the problems, the challenges can be overcome with the help of specific software that takes care of most aspects that would otherwise have to be done manually while also saving your precious time, money and resources. The most important aspect of an multi-channel business is maintaining inventory levels at an optimum level.
Challenges Faced in Multi-Channel Inventory Optimization
Fragmented Supply Chain Processes: If you have a physical store and are setting up an online one as well on different platforms, then you may find it very difficult to maintain a proper supply chain to keep your outlets well-stocked. You have to predict demand at various points, allocate inventory and keep replenishing it as per changing demands. Any breach in your supply chain can result in big losses, not only in monetary terms, but also in the loss of loyal customers -- present and potential.
Maintaining A Safe Level of Stocks: Maintaining safety stocks are a complicated issue. Running out of stocks in certain circumstances can be back-breaking for your company. Therefore, companies tend to overstock sometimes, which can also become a burden, as they consume warehouse space, and ultimately lead to higher holding costs. So, to strike a right balance in the level of inventory you maintain is of utmost importance. In the end, if your inventory problems persist, you may have to go in for distress sales, clearance sales, or even returning the product to the suppliers.
Single- And Multi-Level Inventory Control: Single-level inventory optimization is as important as multi-level optimization in such a business model. Single-level inventory control concentrates on inventory management for a single channel in your supply network. Multi-level inventory control takes a more holistic approach which concentrates on inventory levels across your whole sales network. Small companies would obviously function on a single-level inventory optimization model. As the business grows and more tiers are added, inventory management becomes more and more complicated and difficult to manage. This is where multi-channel inventory management software comes in, as it can solve most of these logistic problems of maintaining optimum stock at various points.
The Importance of Returns Policy: If you have a proper returns policy in place, it will make your customers feel confident in repeatedly buying from you. If some customer happens to receive a product in a damaged condition or not as per the specifications they had ordered, they should be able to return it and get the desired product within least amount of time. Surveys have found that roughly 30% of online-ordered products are returned, in comparison to nearly 9% for brick-and-mortar purchases. So, when you are operating on both channels, it is important for you to know that the same survey also indicated that more people are likely to make their purchases online if they are confident that their returns will be accepted without any hassles. However, returns also have a direct impact on your inventory levels, and therefore you have to demand quality from your suppliers, as well as wisely choose your shipping partners, and only deal with those who are reliable. The bottom-line is that a flexible and transparent returns policy creates trust in your customer base, which in turn leads to higher purchases, loyal customers, and sustainably profitable business.
Multi-Level Inventory Optimization : When you are operating your business on a multi-tier system, you have to maintain your inventory adequately at every level in your supply and delivery chain. This makes coordination between all points in your business all the more important, as even a slight deviation from the inventory levels can cost you a great deal. You will need to follow what is called the multi-echelon inventory optimization (MEIO) system that ensures interoperability at every point in your supply and distribution network. There are two ways of achieving your MEIO targets: Firstly, you will have to optimize on a geographic basis, which would involve infrastructure facilities, labor and inventory management. Secondly, you will have to take a tactical view of your business, which would involve aligning all your operational processes, and also analyze your data with the metrics and targets you have set.
To Sum Up…The solution for all these inventory management problems of multi-channel retailers is to integrate all your operations with an order management software that provides a suite of tools for each of your order management needs.
Simple, yet powerful