Accurately tracking your inventory also enables you to optimize reorder points. Accurate forecasting and order management are especially important for meeting your brand’s shipping guarantees and adapting to seasonal changes in demand. Spreadsheets can be a valuable resource for small businesses and startups who need help tracking a low volume of inventory (i.e. if you’re dealing with a few select products that all reside in the same place). Ecommerce retailers can manually add SKUs to their excel inventory management spreadsheet and then create columns for pertinent details like product quantity or descriptions.
- Manual tracking using pen and paper is an option for businesses not ready to invest in an inventory tracking system.
- Keep track of items you have in stock, and the amount is automatically reduced when invoiced for.
- A 3PL provides you with better visibility into your inventory and the ability to make more informed business decisions.
- This approach can help businesses to identify and address discrepancies more quickly, reducing the need for time-consuming physical counts.
- Accurately tracking your inventory can significantly increase your efficiency and help you keep up with customer demand.
- Plus, for those of you that operate in the ecommerce space, our OMS integrates with all the popular ecommerce platforms.
Thill Inc. is a great solution for fast-growing online brands that need to scale their ecommerce shipping and logistics. When you partner with a 3PL, you can automate your entire ecommerce fulfillment process. They should have real-time inventory reports that detail exact inventory levels in their warehouses. However, as you start to grow and experience more sales coming in, it can quickly get out of hand.
What Is Inventory Tracking? Methods, Benefits, & How to Track Inventory
Organizing and storing inventory logically and efficiently can make it easier to track and manage. By optimizing storage and organization, businesses can reduce the time spent searching for products and improve inventory accuracy. Despite its many benefits, inventory what is inventory tracking tracking can be challenging for businesses, particularly those that deal with many SKUs or operate in multiple areas. Challenges include the cost of implementing a tracking system, the need for employee training, and the potential for errors and inaccuracies.
Having data from tracking inventory to see which products are selling well and which are not can help you make better business decisions and sometimes simplify your catalog — even if it seems counterintuitive. Using an inventory tracking software/system is the most efficient inventory tracking method as it ensures greater transparency and accuracy than other methods. Inventory tracking means monitoring https://www.bookstime.com/articles/what-is-bookkeeping which SKUs a business has in its possession, the location of the inventory, and the quantities available. The ability to track inventory levels in real-time is an important part of the supply chain and critical for ecommerce brands that wish to truly scale successfully. Following on from our previous point, choosing the right inventory management solution is also of crucial importance.
3PL providers often have multiple fulfillment centers they can split your inventory between to save you money and enhance customer satisfaction. Packages will have a shorter distance to travel to customers when your product is distributed in this way, resulting in shorter shipping times and cheaper shipping costs. Using a 3PL provider, you can keep better track of your inventory, set automated reorder points, and optimize your shipping routes and inventory management options. A 3PL can help you to recognize what inventory is in high demand and what might need to be retired to save you money on warehouse costs. Inventory apps are often a generalized solution that can help you to track inventory in a specific way. They can commonly integrate with your e-commerce sales platform for inventory tracking in real time.
Having an accurate count of your inventory at different times in a year can allow you to predict or forecast how much inventory you’ll need in order to fulfill your future demand. This can help you make informed purchasing decisions and avoid over- or under-stocking. A report by McKinsey & Company stated that businesses can reduce their inventory costs by 10%, just by avoiding over- and under- stocking. To ensure efficient supply chain management, you must ensure that your understanding of your customers’ wishes and your forecasting methods are up to par. In other words, being able to anticipate what consumers will want, and when they’ll want it.
The more inventory you have, the more there is to keep track of
POS software like Moon POS is typically used in retail environments to track sales and stock. Tracking systems generate reports that provide insights into inventory levels, trends, and movement patterns. RFID (Radio-frequency identification) tags are similar to barcodes, but a little more advanced.
Warehouse inventory management (or just warehouse management) is a subset of inventory management, in which the inventory being tracked is stored in a warehouse rather than in a back room or on a sales floor. Warehouse management comes with additional considerations, including managing employees, organizing products, managing shipments between warehouses, and fulfilling customer orders. Keeping your customers happy is a challenge at the best of times, and it’s only growing even more challenging. Inventory management is one vital aspect of supply chain management, and there are different elements to tracking inventory. It’s not just a matter of keeping an eye on how many products you have in a particular place at a particular time. An advanced inventory tracking system, by having more data and allowing for in-depth analysis, can also allow for data-driven inventory planning.