A large, unexpected influx of orders is usually good news for an ecommerce company unless they don’t have enough inventory on hand. In which case, things can get pretty stressful. Suppliers may not be able to expedite additional extra raw materials. Employees may not be able to work enough overtime to ensure that all products are made and shipped off on time. So, the company can end up shipping products late. As a result – some customers may get upset and you won’t be able to book that additional revenue. Fortunately, inventory management system software and some other tactics can help you avoid delivering products late to customers.
With the right kind of inventory management software, you consistently know what is in stock in the warehouse or stockroom. The first and most basic step of effective inventory management is to know what’s available for distribution or manufacturing, and then what’s in work in process (WIP) and what’s in transit. That way, you have a holistic picture of your supply chain. Good inventory control software can also help predict what times of the year will be the busiest. If you have been using inventory software for a couple of years, you can study the order patterns of your customers. This will help you figure out what times of year you need to order more of a particular kind of product or raw materials.
If you do any kind of processing or assembly, you can use your inventory management system software to figure out how much your employees will need to work over peak periods to make the amount of products you project for that period. If you know bottlenecking is a problem for your company in December, your projections may show that temps help will be needed to meet production goals. Just study the historical data in your inventory system or warehouse management system to help with strategic planning for peak months.
A well-developed inventory management system is essential. If you want to deliver to your customers on time during your busiest season, proper prior planning is crucial and high-quality inventory management system software can be a very useful tool.