Choosing the right partner can make or break your company’s logistics, customer service, and repeat purchases. Using a fulfillment center like Shipfusion frees you from navigating the fulfillment landscape with zero stress. Below are some insights on how Shipfusion can take your business to the next level.
How To Begin Developing an Inventory Strategy
Every business that carries products has to maintain an inventory in order to be able to continue functioning and generating revenue. The size of the inventory will depend on the type of business, the products offered, and the sales volume. Maintaining an inventory can be a complex and costly undertaking, so it is important to have a good inventory strategy in place.
There are a few things to consider when developing your inventory strategy. The first is how often you need to restock your inventory. This will be based on how quickly you sell your products and how much lead time you need to get new products from your suppliers. You also need to consider how much money you are willing to tie up in inventory. Too much inventory can lock up too much cash and lead to cash flow problems.
Another important consideration is what level of service you want to provide to your customers. If you want to be able to provide a high level of service, you will need to keep a higher level of inventory on hand. This will, of course, cost more money.
You also need to decide what level of inventory you want to keep on hand in order to avoid stock-outs. This is a difficult balancing act because you don’t want to have too much inventory and tie up too much cash, but you also don’t want to run out of products and possibly lose sales.
The best way to develop an inventory strategy is to work with a professional inventory management company. They will be able to help you take all these factors into consideration and develop a strategy that is right for your business.
Some Common Inventory Management Mistakes
Inventory management is a crucial part of any business, but it is also one of the most difficult things to get right. There are many different factors to consider, and if even one of them is not managed properly, it can lead to big problems very quickly.
One of the most common inventory management mistakes is not having a clear understanding of what is in stock. This leads to overstocking or understocking, both of which can be costly. Another mistake is not tracking inventory levels properly, which can also lead to stockouts or excess inventory.
Another big mistake is not considering all the costs associated with inventory. There are many hidden costs, such as storage and transportation that can add up quickly if not accounted for. Finally, not having an efficient system for managing inventory can lead to a lot of wasted time and money.
Avoiding these common mistakes is essential for any business that wants to run smoothly and efficiently. Having a good inventory management system in place is the best way to ensure that all of these factors are taken into account.
There are many common inventory management mistakes that can lead to inventory shrinkage. Some of the most common mistakes include:
1. Not knowing what you have in stock: This is a mistake because if you don’t know what you have in stock, you can’t make informed decisions about what to order. This can lead to overordering, which can tie up your cash flow and lead to inventory shrinkage.
2. Not tracking your inventory: This is a mistake because if you don’t track your inventory, you can’t know when you need to reorder. This can lead to stockouts, which can lose you sales and damage your reputation.
3. Not keeping your inventory organized: This is a mistake because if your inventory is not organized, it can be difficult to find items when you need them. This can lead to lost sales and wasted time.
NEXT WEEK: Common Inventory Management Mistakes Part 2
Shipfusion sets your business on autopilot and combines flexible, reliable fulfillment with powerful, real-time technology. Shipfusion has multiple fulfillment centers across the US and Canada– making it easy to manage your eCommerce business. For more information on how to set your business on autopilot, contact one of our fulfillment specialists today.