Direct-to-consumer (D2C) companies have to constantly fulfill orders in the multiple channels on which they sell. This presents a lot of challenges as you’ll have to always be aware of the amount of stock you currently have and where it is located. You also have to consider if you have the ability to automatically ship inventory from the warehouse closest to your customer.
It’s a lot to take in as there are numerous elements that you have to consider. Multichannel inventory management systems help you in this aspect.
However, for a system to be truly effective in scaling your business, there are some common errors in managing your inventory that you will need to be aware of in order to avoid them:
1. Little To No Automation
Still counting your items and listing down their numbers on a clipboard? Relying too much on spreadsheets? That’s only going to slow you down, especially if you’re in online retailing.
Automating your inventory management means having the ability to figure out exactly when your stocks are getting low. You can even automate reorders, which means that the system itself can place the reorder for you so you don’t even have to lift a finger.You wouldn’t have to turn away customers anymore because of an “out of stock” notice.
2. Not Foreseeing UnderstocksAnd Overstocks
It’s difficult to have eyes on your inventory and other aspects of your business. But there is only one way to make sure that your inventory management is effective: planning.
It’s important for you to take some time in assessing your inventory needs in order to avoid understocking and overstocking. Both of those can be detrimental to your business as one can have a direct impact on your customers’ trust and satisfaction, and the other can severely affect your capital.
For you to be able to make a forecast successfully, you’ll need data—lots of it. An inventory management system for multiple channels can aid you in this as it will keep track of everything for you. It will help you understand which items are selling fast and which are not, prompting you to adjust your inventory accordingly.
3. Overselling Items
Having an out-of-stock item isn’t a good thing for your online store. Customer experience is all about convenience, especially if they’re buying online. They don’t want to end up looking for another business for the same product. You wouldn’t want that either.
The answer to this is, again, putting your system on autopilot. With a multichannel inventory management software, you can avoid running into this problem as you’ll receive alerts whenever inventory runs low.
4. Not Keeping Tabs Of Your Relationships
Business isn’t just about satisfying your customers with the products you provide. It also includes maintaining and strengthening your relationships with your suppliers and vendors. Without them, you wouldn’t even have a store to begin with.Keep track of your timelines and ensure clear and constant communication.
Managing your inventory isn’t a walk in the park, especially if you’re selling your items on several channels. With a good inventory management system in place, you wouldn’t have to worry about counting your stock manually ever again.
Fiddle is a multichannel inventory management software that can help you in keeping your inventory in check. In one intuitive space, you can produce, track, and organize your items effectively.