Managing your inventory might not seem like a tedious task when you have just started your business. However, as your sales shoot up, loads of inventory challenges are bound to come your way. But you need not worry since plenty of techniques help you plan out efficient inventory management, thereby keeping your stocks in one place effortlessly.
These techniques or methods are highly practical, and their success is evident from the fact that they are adopted by some of the leading e-commerce fulfillment services in India. So, whether you are an order fulfillment service looking for ideal yet working strategies to arrange your stocks or a D2C brand in India with the same goal, you have come to the right place.
By the end of this article, you’ll have the top and finest of all techniques in your hand that can land you the ultimate warehouse management system for your business. So, let’s begin!
Top 5 Techniques For Better Inventory Management System
- ABC Analysis
Simple, yet one of the most efficient ways of arranging and ordering your inventory is ABC or “Always Better Control” analysis. In this approach, the order fulfillment service must categorize its inventory into three sections; A, B, and C. The basis of the division is the high price or value of the products.
E-commerce fulfillment services India and elsewhere keep the A group for the most expensive inventory in the warehouse, followed by the moderate valued one under B and the lowest prices under C.
This inventory management technique aims to implement high control over the A class since any harm to this group can adversely affect your business.
The next technique adopted by most e-commerce warehousing services is JIT or the “Just In Time” method.
In this, the company avoids storing excess stocks but only the amount needed by the e-commerce courier service to fulfill the orders. New inventory is ordered when the product quantity approaches replenishment and hence enters the warehouse “just in time”.
Although, this inventory management system can be risky when proper tabs aren’t kept on the stock levels. However, it also prevents unnecessary storage and cost issues, which is a bright upside.
The FSN or “Fast, Slow and Non-Moving” warehouse management system is based on the utilization and demand of a particular product, a highly beneficial technique to cut down costs on the least-demanded/ordered items.
In every e-commerce warehouse in India or elsewhere, there exist three types of inventories:
- The one that is required very frequently (fast-moving)
- The one whose demand is moderate (slow-moving)
- The one that is least ordered or sometimes not at all (non-moving)
Based on these requirements, the company restocks. In addition, market trends (especially seasonal) are looked out for beforehand so that the order fulfillment service categorizes its inventory into these verticals correctly in advance.
The MRP technique stands for “Material Requirements Planning” and is quite similar to the FSN inventory management system in terms of predictions and sales forecasts.
Once the market analytics results are in place and the business is aware of the expected orders they’ll have to fulfill, purchasing inventory and storing it with the help of e-commerce warehousing service takes place.
While this technique can be immensely fruitful since you’ve pre-planned everything, it can also negatively impact if there’s an unforeseen variable that changes the market trends drastically, like Covid-19.
- Minimum Safety Stock
Last but definitely not least, the “Minimum Safety Stock” method is mainly aimed at preventing out-of-stock situations at all costs. If you’re a D2C brand in India who has frequently been running out of inventory, then this approach is exactly what you need to adopt.
The “Minimum Safety Stock” is basically a level of stock quantity that the e-commerce warehouse India must always meet (at least). For example, let’s say the present quantity of any product in your inventory is 20,000, and you’ve set the minimum safety stock level as 3,000.
So, whenever the quantity level drops down to 3,000, you will be placing a new order for your inventory. This helps to restock within plenty of time, thus preventing haste in the warehouse and dissatisfaction with the customers.
One of the best ways to manage your inventory correctly is to take help from 3PL logistics like QuickShift fulfillment. Preferred by the leading brands in India and in partnership with the top e-commerce channels, you can even switch from being a D2C brand to integrating with platforms like Amazon, etc., with QuickShift fulfillment.
It also provides hassle-free warehouse management that runs parallel to your aim of achieving cost-efficiency. Furthermore, you also get to benefit from an excellent e-commerce courier service that takes utmost care of your customers and helps you complete last-mile deliveries.
With QuickShift, get your business’ dream-warehouse today and get started with the inventory management technique that suits your requirements the best!