Maximising efficiency and profitability: The essentials of eCommerce stock management

Challenges:

Many businesses track their stock with a daily or weekly spreadsheet or via physical stock takes.

Spreadsheets are a time-consuming method of recording stock levels. It’s a manual process usually assigned to a unique individual who has to find out how many units of each item are sold, purchased, used, or lost to wastage each day. There’s also the risk of human error, and we all know it only takes one incorrect number to skew company numbers to a large degree.

Physical stock takes are not only labour intensive and typically conducted outside of trading hours, but as soon as the numbers are confirmed, this data is now historical and there will be no understanding of stock position until the next physical stock take. This is usually scheduled for months down the line.

Solutions:

Keeping track of your inventory in real-time is essential for making informed decisions. Traditional methods, such as manual spreadsheets or periodic physical stocktakes are not only time-consuming but also prone to errors. Automated stock management software eliminates these pitfalls by seamlessly capturing data on sales, purchases, and stock movements. This provides you with up-to-the-minute insights into stock levels, sales trends, and profit margins, empowering you to make data-driven decisions with confidence.

Automating data capture by processing sales, purchases, and stock movement via stock management software will give you a real time view of stock quantities, stock assigned to sales orders, and which items are nearing their minimum and maximum levels. All good stock management systems come with reporting which will use the sales and stock on hand data to give you insights such as what your bestselling items are, which product lines provide the highest or lowest margins, and the value of all the stock you hold.

Challenge:

While many eCommerce platforms offer basic stock management functionalities, unfortunately, they are typically very basic and only focus on reducing stock when a sale is made.

Solution:

By integrating your eCommerce platform with a specialised stock management system, you can automate stock updates in real-time, across multiple sales channels. This two-way integration eliminates the need for manual reconciliation, ensuring accurate stock levels and efficient order fulfilment processes.

Leveraging cloud-based analytics tools can also improve efficiency as it enables you to forecast future demand and optimise stock levels accordingly. By analysing historical data and considering factors, such as seasonal trends and supplier lead times, you can minimise excess inventory while ensuring adequate stock to meet customer demand.

Additionally, tracking production processes and labour costs provides valuable insights into operational efficiency and profitability, allowing you to fine-tune your stock management strategies for maximum returns.

In an era defined by digital transformation, mastering the complexities of stock management is no longer a luxury but a necessity for eCommerce businesses striving to stay ahead of the curve. By implementing robust systems and embracing innovative solutions, organisations can unlock a wealth of opportunities to streamline operations, minimise costs, and enhance the overall customer experience. As we look towards the future of eCommerce, one thing remains clear: those who prioritise efficient stock management will be best positioned to thrive in an increasingly competitive marketplace.