2. Inventory kitting
You identify products that have been loitering for too long in your inventory — what do you do?
It might be tough to admit this, but it comes to a point where you might have to consider cutting your losses. Though, that doesn’t mean that you should throw everything out the window. One technique you can implement is inventory kitting your products.
This is where you take your slow-moving or dead stock, and bundle it with stock that is selling, so you can offload the products and recuperate some of your costs.
3. Demand planning
This is an essential process step for a spring clean and a method of optimizing your inventory handling.
The purpose of performing demand planning is to make future sales and stock level requirements a little less uncertain. To do this, look into historical sales data and identify past trends to make a prediction on what you’ll need for the coming period. You can use PEST analysis to make these estimations by looking into factors such as:
4. Storage and routing
This is easy to overlook when improving your inventory management for e-commerce.
Be smart where you place your items and equipment in your business by answering these questions:
- Do you have easy access to your raw materials?
- Are there problems moving items from one manufacturing process to the other?
- Do you keep your finished goods inventory for e-commerce and offline selling separate?
Rethinking how your warehouse, factory, e-commerce inventory, and physical store locations are laid out will help you improve inventory management, minimize costs, and maximize value for the customer by reducing waste.
5 Reorder points
Reorder point is an essential tool for managing inventory and improving operational efficiency.
By using a reorder point system, businesses can always have the right amount of stock on hand to meet customer demand. This leads to lower costs, increased profits, and happier customers. You can calculate your ideal reorder point with the following formula: