How real-time stock management saves you money and headaches

One of the most important hurdles for an ecommerce business to overcome is maximising efficiency in their supply chain. In a brick and mortar store, customers can just pick things off the shelves; the warehousing process, for the most part, is already handled. But when they’re shopping online, problems within your fulfilment operation are pushed to the forefront, such as a lack of real-time stock management.

Many businesses still rely on periodic counts and estimates for their stock. But the tide is turning. 72% of retailers say they plan to reinvent their supply chain with real-time stock visibility enabled by automation and analytics.

But what are the benefits of real-time stock management? And how can it save you time, money, and headaches?

Vastly improved accuracy

What’s your current method of stock management? A common tactic is to look at legacy reports and data from previous months and years to figure out how much stock you’re going to need for a specific period.

This can be aided by analysts and technology to figure out the optimal amount of stock you need. But you always run the risk of inaccurate data due to human error or unforeseen circumstances.

For example, you could be relying on a certain amount of stock to be sold to meet your targets. But inaccurate data means that you’re a few items short and can’t fulfil your quota.

Real-time stock management, on the other hand, lets you have a more complete picture of your business, to help avoid over and understocking. But it’s not just about having an accurate view of the amount of stock you have. It’s also about the accuracy at which you can track it throughout each stage of the fulfilment process.

For instance, you can use real-time insights and automation to track where inventory is travelling throughout your warehouse, so you always know where things are.

Reduced costs

Businesses are always looking for the best ways to save money, whilst retaining the excellent service their customers expect.

The fulfilment process can be one of the most expensive functions of an ecommerce business. So trying to save money in this area is often a critical goal of companies.

But you shouldn’t have to cut corners to save that money. There’s ways to simultaneously improve your operation whilst also cutting your losses. In fact, it’s overstocks, understocks, and unnecessary returns which cost the retail industry $1.75 trillion every single year.

That’s something which can be alleviated by real-time stock management. By having a clear view of how much stock you have, compared to the amount you actually need, you can more efficiently manage your operation.

Not just through avoiding overselling and underselling. But also by optimising the space in your warehouse in real-time, so you’re not wasting storage which could be allocated to other things or even removed to save on costs.

More satisfied customers

It might be a cliche to say that the customer is always right. But when it comes to the experience you offer them, it’s true. If you treat your shoppers as an afterthought, even unintentionally, it’s unlikely they’ll shop with you again.

In fact, 59% of customers won’t return to you after just one bad experience. So it’s essential to optimise every area of your business to ensure they keep coming back.

One of the most common issues ecommerce customers face is an issue with their order or delivery at the fulfilment stage. Perhaps they’ve placed their order, only to find out it’s out of stock. Or maybe their package has been lost somewhere in the process.

With real-time stock management and tracking, warehouses are better equipped to deal with your inventory. That could be through features such as digital barcodes which are scanned at every point and movement, then updated in real-time on your system to show where things are and where they should be.

And when applied to your shipping operation as well as your warehouse, you can increase customer trust and satisfaction even further. It’s relaxing for your customers to be able to check their phone at any time and see live updates about their delivery, so they know it’s not going to be lost.

Next-level decision making

Powerful insights are one of the most effective ways to make good decisions about your business. In the U.S. alone, poor inventory planning decisions cost businesses over $300 billion in revenue each year.

A lack of real-time stock information can impede your ability to make the right decisions.

For example, let’s say you’re using legacy data to decide how much stock you order within a month. You might run into some unforeseen circumstances, such as a product becoming unexpectedly popular. Or, vice versa; perhaps a competitor releases a similar product to you at the same time and they end up taking business away from you.

Without real-time inventory data, it’ll take you longer to react appropriately to situations like these. That can result in both overselling and underselling.

But if you have accurate, reliable, and instant insights, you can make quick decisions and adjustments to maximise your profits and minimise losses.

The importance of integrations

You can’t just snap your fingers and get real-time stock management. You need reliable access to data across your entire business, and a trusted fulfilment partner to help you view that data succinctly.

Data integrations through a no-code/low-code and self-serve platform allow you to execute your new fulfilment strategy quickly and efficiently.

For more information, get in touch for a free consultation and demonstration of the Patchworks platform. We have years of experience with fulfilment partners and businesses with stock management issues.