Understanding inventory management and keeping your stock updated are really important when running an eCommerce business. Inventory management helps you block errors and gives you a good insight of your stock. Poor management of inventory systems / not managing them can bring stress and customer dissatisfaction to your business. You may face product shortages which could ultimately drive down profitability. Unhappy customers are something you would want to avoid at all costs…
Shipment delays can also be caused by the poor inventory management which will also result in poor customer satisfaction.
Automated Inventory management will increase overall efficiency instead of paying employees to sift through files manually, writing reports or visiting the warehouse – all very time consuming and expensive. Inventory management will ensure that you avoid these issues and allow you to focus on more important company issues.
Businesses with more than one location can suffer if their inventory management is poor too as problems are compounded. Everything is multiplied with these logistical problems.
Avoid late deliveries
Late deliveries can give you a poor reputation in the industry. If a business fails to deliver products on time (through a preventable variable like out of stock) you will find that disgruntled customers tell more people than satisfied ones.. However, with inventory management, you will always fulfill delivery dates.
Inventory management helps give you the best of both worlds ie reducing costs and better customer satisfaction. You can set up your inventory management system to integrate with a number of software systems too, adding to its appeal.