Inventory management describes how a company keeps track of its product inventory such as ordering, storing, selling, and so on. There are various popular techniques for managing the inventory for e-commerce stores. Some of them are discussed below:
ABC Analysis: This technique will help you find which product is most valuable and which is least valuable so that you know where to spend your time and money. ABC analysis will divide your entire inventory into three segments based on product total value to the company. This technique will help you know which product is worth counting regularly.
Setting Par Levels: This inventory management technique will provide structure for the ordering process, assigning priority to products that need to be ordered and separating them from products that do not need to be ordered immediately.
First In First Out (FIFO): FIFO techniques will help you in selling the old goods in your warehouse first. You must have a well-organized warehouse for this technique. This technique is suitable for all types of industries.
Keeping Safety Stock Inventory: Safety stock is extra inventory that is kept in case if extra stock is needed. It is always difficult to predict the sale of the product, so it is beneficial to keep safety stock. That does not mean you need to keep a lot of extra stock, otherwise, it will add to the cost of storing your product.
Regular Inventory Auditing: There are different audits such as a full audit, a partial audit, and spot-checking. You should check the physical inventory, you can run the risk of acting on inappropriate information, leading to overstocking and under stocking issues.
By using all these inventory techniques, you can track your product inventory and have a proper record of your stock in a warehouse. Choose techniques that are suitable for your business requirements and start working on them.