When it comes to site performance, there are far more factors to consider than simply how your site appears to the user. Inventory accuracy is one of these factors that is often overlooked.
When a customer is shopping across both your eCommerce site and your brick-and-mortar stores, inventory accuracy becomes critical for a true omnichannel experience.
In this post, we’ll cover tips for maintaining accurate inventory data across channels to improve the customer experience and drive sales.
1. Sync Data for Inventory Accuracy
Consider inventory accuracy from the customer’s perspective. Let’s say a customer comes into your store and browses, then finds the perfect pair of jeans in the right color and perfect fit. But, they are unable to buy them because they run out of time and have to go. Later that afternoon they go to your website and find the same pair of pants, right size, right color. They then try to add it to their cart but instead get an "out of stock" message.
Now your customer is frustrated; they just saw the product at your store less than an hour ago, and there were a couple stacks of them folded on the shelf, too. They abandon their cart and think twice before shopping with your brand again. This could be avoided if your systems were synchronized properly.
Gathering the needed data that ties your warehouse, brick-and-mortar store, marketplace, and online store together is crucial and should be handled in real time with set priorities. Your entire team should know which location gets priority in order fulfillment and why. There should also always be thresholds in place so your locations can ensure there is ample product on hand. Knowing how long it takes for products to be ordered and delivered from your distributor will dictate your estimated thresholds. Here’s an example:
You know it takes two weeks to get more of a certain SKU delivered. You sell approximately four units a week, and the most you have ever sold in a week is six. You can estimate it would be safe to hold a minimum of six units at all times. So, when your inventory drops to eight, you know it’s time to order more.
2. Create a Solid Replenishment Plan
No matter where you store your products, it’s imperative to prioritize accurate data and smooth replenishment flow. Without a large team of employees and powerful systems that give large retailers an edge, keeping inventory data tight can be a challenge. Don’t be discouraged; there are ways to streamline the process for smaller teams.
Here are a few tips:
- Focus on accurate inventory, stock prioritization, and smooth replenishment.
Get a clear view of your supply chain across your organization. Prioritize creating stock replenishment rules. - Ensure inventory is updating as close to real time as possible.
- Understand and become familiar with the factors that affect your demand forecast, such as seasonal events, new competitors, and supply side issues.
- Nail down a demand forecast by communicating with your fulfillment team, customers, suppliers, and retail associates.
- Budget for mishaps and create a backup plan to handle them just in case your forecasting is off.
3. Establish Inventory Visibility
Visibility refers to a team’s ability to see what is happening and when, including everything from receiving new inventory and the movement of inventory between locations, to order fulfillment. Having a handle on demand forecasting and your replenishment strategy is essential to get a clear view of inventory.
Gathering the necessary data to understand how much business you will receive in the future is complicated for some, but if you implement a system that supplies real-time inventory data, you are off to a good start. If you don't have a system in place already, make sure your data is organized and up to date before using it for your forecasting and planning.
The first step is to prioritize inventory needs. After, get your team that manages your inventory together. Include inventory managers, your sales team, and suppliers. You may even consider getting feedback from your customers. Collect the historical information they have, then review it as a group. When you review, you should be able to uncover each team's area of responsibility and any overlaps, which can make your data collection and reporting more efficient and understandable for the entire team.
Need Help Improving Your eCommerce Customer Experience?
If you’re looking for more ways to improve the customer experience, struggling with complex integrations, or ready to switch to an eCommerce platform that grows with you, schedule a consultation today to get started.
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