Automating Inventory Management

The Hidden Risks of Manual Inventory Management and Their Solution

Did you know that around 34% of businesses ship their orders late only because they sell products that are not present in their inventory? If you don’t wish your company in the same category, it is essential to understand the importance of inventory management. 

 

So, how does manual inventory handling affect your business? What are the consequences of improper inventory management?

 

This blog is your wholesome guide for understanding the possible downsides of manual inventory management practices. You’ll also find the best integration solutions in eCommerce, such as Shopify and Lightspeed, Zoho and Squarespace, etc. 

 

Let’s begin with understanding the importance of inventory management for your eCommerce business.

Key Takeaways - 

 

  1. Manual inventory management can lead to late order shipments, with around 34% of businesses experiencing delays due to selling products not present in their inventory.

  2. Improper inventory management results in increased holding costs, stockouts, and poor customer satisfaction.

  3. SKUPlugs offers seamless integration solutions for eCommerce and Retail POS systems.

  4. Integrating Retail POS with eCommerce platforms improves inventory management and streamlines operations.

  5. SKUPlugs supports integrations like Shopify with Lightspeed, Zoho Shopify, Loyverse WooCommerce, and Amazon Integration, saving businesses time and money.

Inventory Management - The Backbone of eCommerce Businesses

If you think inventory management is only linked to effective business operations, you need to go through the business fundamentals chapter again.

But don’t worry! We’ll help you with that.

 

Here’s a basic definition of inventory management – 

 

Inventory management refers to overseeing and controlling the flow of goods or products within a business’s inventory. It involves monitoring the quantity, location, and status of inventory items to ensure that the right products are available in the right quantities, at the right time, and in the right place to meet customer demand while minimizing costs and maximizing efficiency.

 

However, the vitality of inventory management extends way beyond this general definition. 

Importance of Inventory Management

  1. Meeting Customer Demand: Effective inventory management ensures businesses have the right products available when customers want them. By maintaining optimal inventory levels, companies can fulfil orders promptly, leading to higher customer satisfaction and loyalty.

 

  1. Optimizing Working Capital: Inventory represents a significant portion of a company’s assets. Proper inventory management helps businesses balance having enough stock to meet demand and avoiding excess inventory that ties up capital. This optimization of working capital improves cash flow and profitability.

 

  1. Minimizing Stockouts and Overstocking: Stockouts (running out of inventory) can lead to lost sales and dissatisfied customers, while overstocking ties up capital and incurs holding costs. Inventory management helps businesses avoid both scenarios by accurately forecasting demand and maintaining optimal inventory levels.

 

  1. Reducing Holding Costs: Excess inventory incurs various holding costs, including storage, insurance, and obsolescence costs. By minimizing excess inventory through efficient inventory management practices, businesses can reduce these holding costs and improve overall profitability.

  2. Improving Efficiency and Productivity: Streamlined inventory management processes, such as barcode scanning, automated replenishment, and real-time tracking, enhance operational efficiency and productivity. Employees spend less time on manual inventory tasks, allowing them to focus on more value-added activities.

We hope you have a clear idea about how crucial it is for an eCommerce business to have proper inventory management. 

 

But wait, just inventory management is not enough. Accurate Inventory Management is the need. And it is not possible to achieve it manually. 

 

Do you think you can do it manually? 

 

Alright, let’s focus on the risks associated with improper inventory management and then you can decide.

Risks of improper Inventory Management

  1. Increased Holding Costs: Maintaining excessive inventory levels ties up valuable capital that could be used elsewhere. This ties up funds that could be invested in growth initiatives or used to address other financial needs. Additionally, excessive inventory incurs holding costs such as storage fees, insurance, and the risk of obsolescence, which can significantly impact profitability.

 

  1. Stockouts and Lost Sales: Inadequate inventory levels can lead to stockouts, where the desired products are unavailable when customers want to purchase them. This can result in lost sales, dissatisfied customers, and damage to the brand’s reputation. Customers may turn to competitors to fulfil their needs, leading to long-term revenue loss and decreased market share.

 

  1. Obsolete Inventory: Poor inventory management practices can lead to the accumulation of outdated or expired inventory. This can occur due to changes in consumer demand, product obsolescence, or errors in forecasting. Obsolete inventory ties up valuable warehouse space and capital that could be allocated to more profitable ventures. 

 

  1. Poor Customer Satisfaction and Loyalty: Improper inventory management can lead to poor customer satisfaction and loyalty. Stockouts, long lead times, and inconsistent product availability can frustrate customers and drive them to seek alternatives. Dissatisfied customers are less likely to return and may share their negative experiences with others, tarnishing the company’s reputation and hindering future growth opportunities.

It creates the need to integrate your eCommerce stores like Shopify, WooCommerce, or Squarespace with the Retail POS(Lightspeed, Loyverse, etc.) Let us add more to your knowledge about how integrations are essential. 

 

How does Integrating your eCommerce store with Retail POS help?

Benefits of Integrating Retail POS with eCommerce Platform

  1. Unified Inventory Management: Integration allows for real-time synchronization of inventory levels between your eCommerce platform and retail POS. This ensures an accurate view of stock levels across all sales channels, reducing the risk of overselling or stockouts.

 

  1. Omni-Channel Selling: With eCommerce-POS integration, you can offer a seamless shopping experience across online and offline channels. Customers can browse products online and make purchases in-store, and vice versa, with their transaction history and preferences accessible across all touchpoints.

 

  1. Order Fulfillment Optimization: Integration enables efficient order fulfilment regardless of the sales channel. You can fulfil orders from any location, whether it’s a warehouse, store, or dropshipping partner, streamlining the fulfilment process and reducing shipping times.

 

  1. Centralized Customer Data: Integrating eCommerce with POS allows centralized customer data management. Customer profiles, purchase history, and loyalty program information are accessible across all channels, enabling personalized marketing campaigns and improved customer service.

  1. Streamlined Operations: By eliminating manual data entry and reconciling discrepancies between systems, integration streamlines operational workflows. This frees up time for staff to focus on core tasks, such as customer service and product merchandising.

For those who are struggling to establish integrations between theri eCommerce platform and Retail POS, direct integrations are not available on all the platforms. Even the plugins available for integrations aren’t that effective and offer limited control to the business owners. Moreover, some plugins may also disrupt your website leading to bad customer experience. 

 

‘What’s the best solution for integrations then?’

 

SKUPlugs is the best and one-stop destination for all the significant integrations.

 

Learn how easy it is to set up Lightspeed Shopify Integration, Loyverse WooCommerce integration, Amazon integrations, and many more using SKUPlugs.

Setting Up Integrations Using SKUPlugs

SKUPlugs provides seamless integration solutions that streamline the connection between various business systems, allowing for efficient data synchronization and workflow automation. With SKUPlugs, businesses can integrate their eCommerce platforms, point-of-sale (POS) systems, and other software applications to optimize operations and enhance productivity. 

 

Here’s how SKUPlugs facilitates integration and some of the top integrations it supports.

 

  1. Shopify with Lightspeed Integration: SKUPlugs facilitates a seamless connection between Shopify, the renowned eCommerce platform, and Lightspeed, a leading POS solution. This integration empowers merchants to unify their online and brick-and-mortar operations.

 

  1. Zoho Shopify Integration: SKUPlugs facilitates integration between Zoho, a comprehensive suite of business software applications, and Shopify. This integration enables seamless data flow between Zoho’s CRM, inventory management, accounting solutions and Shopify’s eCommerce platform. Merchants can automate processes, gain a holistic view of their business operations, and improve efficiency with SKUPlugs’ Zoho Shopify integration.

 

  1. Loyverse WooCommerce Integration: For businesses using Loyverse POS and WooCommerce, SKUPlugs offers seamless integration to synchronize data between these platforms. This integration allows merchants to manage inventory, process orders, and track sales online and offline. By connecting Loyverse POS with WooCommerce, merchants can leverage the strengths of each platform to optimize their retail operations and drive growth.

 

  1. Amazon Integration: SKUPlugs supports integration with Amazon, the world’s largest online marketplace. This integration lets merchants list products, manage inventory, fulfil orders, and sync sales data between their eCommerce store and Amazon Seller Central. With SKUPlugs’ Amazon integration, merchants can expand their reach, increase sales, and streamline operations across multiple sales channels.

Time Is Money - Save Both Using SKUPlugs

SKUPlugs offers a powerful solution to save time and money for businesses by seamlessly integrating eCommerce stores with Retail POS systems. By implementing SKUPlugs, companies can establish a unified system for tracking inventory, order details, product data, and more across all sales channels. 

 

It streamlines operations, eliminates manual data entry, reduces errors, and enhances efficiency, ultimately leading to cost savings and increased productivity. With SKUPlugs, businesses can focus their resources on core activities, deliver exceptional customer experiences, and drive growth. Sign  up now and start your free trial.

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