The Barriers to Omnichannel Inventory Management

A customer makes a purchase of an item from a web store and the product arrives to them swiftly. Pretty simple, right? To the customer, it is.

Though not seen, a precise procedure needs to be executed to make certain the consumer gets what they require, how they desire it, and when they expect it.

In past times, it used to be not complicated to keep track of stock – the number of items on hand was just tallied up. The complexity of the supply chain has increased as consumers have been engaging with retailers in more diverse ways.

Taking inventory by hand is out. Omnichannel inventory management, which involves keeping track of inventory on all sales platforms, is now a necessity.

This might refer to a physical outlet, an e-commerce shop, social networks, or any other venue where merchandise is sold. Consumers anticipate it now and the majority of retailers (72%) plan to offer it.

Omnichannel inventory management is shifting from an optional feature to a requirement, allowing companies to anticipate customer demand and prevent stock-outs.

How to Get Started with Omnichannel Inventory Management

Creating the beginning requires thorough preparation and an intelligent perspective. It starts with a centralized inventory management solution. From that point, implementing a strategy to manage inventory across all channels is much simpler.

Determine where your inventory exists across your network.

Inventory can be found in multiple places or at different points in the manufacturing process. It is tricky to compile properly the incoming, switching, and inventories stored in multiple sites. It’s even more difficult to get full visibility.

Companies providing inventory management solutions can be of great help in enabling companies to make decisions that are based on reliable data. This sets the amount of stock on hand and the number of items ready to be shipped out.

Choose how you will source your products.

Are you going to create your products on your own or will you be hiring someone else to make them? The way that raw materials, parts, or finished products are monitored and kept track of will differ depending on the organization and field of work, but it has to be done no matter what.

Decide if you will implement an inventory management solution.

This is an important move, yet a necessity for companies that possess intricate logistics. Setting up at the start is difficult – this is true for any management system that is used across a wide area of the business. However, the short-term pain is worth the long-term gain.

Analyze if your business can continue growing without inventory management.

Are your current processes scalable? Can you handle a sudden increase in demand? What are you doing manually that can be automated? What activities can you undertake as a result of the increased efficiency gained by automation? Prior to investing in a solution, businesses should ask themselves a number of questions.

It is important to take into account both the obvious and hidden expenses regardless of whether you decide to put a solution into action or not.

Assess different vendors that fit your business needs.

It is important to be aware of your current and future requirements. How will it fit in your larger tech stack? Is it scalable? Can it account for all sales channels?

Benefits of Omnichannel Inventory Management

It is very hard for ecommerce businesses and business owners to successfully handle their inventory by only using one source. Doing so over multiple channels is even more so. Attempting to accomplish this task with a manual method or an isolated digital solution will only result in errors or untrustworthy information.

An effective retail business running across multiple channels requires a primary store of factual information that serves as the essential information center for the company.

Increased productivity.

The great advantage of automation is that it takes away laborious tasks from personnel, leaving them able to focus their energy on achieving even more meaningful work. Omnichannel inventory management is no different. Technology-driven management that updates automatically is more efficient and offers a higher level of data than hand-operated methods or spreadsheets.

Decreased costs.

There are direct and indirect cost savings involved. The direct expenses are accompanied by an increase in the effectiveness of procedures and staff. The costs which aren’t immediately recognizable come from diminishing mistakes that have an effect on the movement of goods, right up to the person who bought them.

Improved margins.

Enhanced inventory control won’t affect the expense of items or materials, yet it will change the amount it costs to transport them. This is an easy and efficient method to maximize the use of products, without making any changes to the product itself.

Barriers to Omnichannel Inventory Management

Putting into effect an inventory system that supports multiple channels necessitates handling a lot of components. Products and processes must remain synchronized at all times. The advantages of the situation surpass the challenges, but these difficulties should be addressed.

Segmented supply chain processes.

A successful multi-channel strategy necessitates a great deal of integration, which is contradicted by a divided supply chain. If supply chains are organized into isolated segments, it can result in discrepancies causing problems with order completion, that is, promoting items that are not actually in stock or having deliveries arrive late.

Lack of inventory visibility.

Inventory visibility means accurate data. Without precise information, you’re beginning on the incorrect footing and the basic work you’re doing will be faulty. It is believed that this is the most significant obstacle for a method of inventory management to be implemented across all supply chain operations.

Data quality can have an effect on enlarging and broadening into different avenues, which substandard data will have a detrimental effect on too.

Order accuracy.

Having precise stock figures available is fundamental in establishing a feeling of faith amongst buyers, whether they are new or regular customers. Accurate information enables quicker movement of goods from the dock to stock, meaning customers can get the products they need within the period that they anticipate.

For an omnichannel inventory management system to be put in place, top-notch data is essential, thus making the endeavor challenging to accomplish.

Order tracking.

Customers have new anticipations due to current online shopping, including up-to-date information and the ability to track orders from the time they leave the warehouse until they get to their door. It is now essential to include this procedure in the completion of tasks and it needs to be taken into account when incorporating a new platform.

High inventory storage costs.

Inventory control needs to be intelligent in order to avoid excess stock that goes unused and keep storage costs from rising. Having an effective system for calculating needed stock and updating inventory amounts can prevent a decrease in profits and ensure that expected earnings are reached.

Technology.

The inventory or warehouse management system is the essential foundation for an omnichannel approach.

Omnichannel cannot be done manually. With an automated technology solution, every process is streamlined. Delivery confirmation is coordinated simultaneously across different platforms. Reports that contain information about the inventory are produced so that you can make sound choices about what to have in stock.

Best Tips and Practices for Omnichannel Inventory Management

Having taken time to examine the trials and tribulations you’ll have to contend with, let’s now examine the most effective strategies and processes relating to a unified inventory management setup.

Know Your True Inventory Levels

It is reported that almost half of the small businesses in the United States do not keep track of their inventory or use a manual system to do so. 43 percent!

Consequently, having precise information on your present inventory levels places you ahead of almost half of America’s small eCommerce establishments.

It is important to be aware of actual inventory levels, which requires having an understanding of the inventory available in retail stores, online stores, and other marketplaces.

The only strategy to accomplish this is to employ a tech answer that offers immediate stock monitoring. SkuVault allows you to monitor your inventory levels continuously for every sales channel, so you can adjust them as needed.

It is of utmost importance to be aware of your inventory levels. Not being mindful of this could lead to the sale of products not available, which could enrage customers, leading to a loss in profit.

Encourage in-store returns

Boosting sales by allowing in-store returns could be beneficial to your overall financial gain. The potential benefits for your business of having customers come into the shop to return something are numerous.

Your customer may find what they want in the store or even discover new items to purchase.
Customers won’t have to waste time printing a return shipping label and going to a shipment business. They will appreciate this time saved, especially if they find what they want in-store.
Not only will you be rewarded by their in-store shopping, but you’ll also save money on the cost of paying for a shipping label. In other words, it’s a win-win!

What would take place if they bring the item back to the store without buying anything new? No problem!

You won’t have to go through the pricey step of paying somebody to scan the item and relist it online in order to offer it in-store.

Integrate Your Supply Chain

By connecting all aspects of your supply chain, you can keep track of what is happening to a shipment from the time a customer places an order to when it is delivered, either to a store or right to the customer.

You can see what is happening with your items, making it possible to always stay informed about their location and when they are predicted to be delivered.

This gives you the opportunity to quickly recognize any potential problems that could happen so you can take the necessary measures to minimize them.

If, for example, you realize that a certain product will not arrive on time, it is essential to promptly change your website or app so that customers are aware of the possible deferment and do not become irritated.

Incorporating your supply chain into your organization provides the additional advantage of giving you insight into how much inventory you have, so you can amend your numbers as needed to make sure you consistently have the appropriate number of items in stock.

Optimize Your Return Policies

It is beneficial to modify your return policies in order to maximize omnichannel inventory management. The phrasing for your return policy should be obvious, brief, and simple to comprehend. It should be designed in a way that allows you to provide various choices based on the product, outlet, and consumer.

As an illustration, it could be beneficial to offer no-cost returns for items bought through the internet yet impose a restocking fee for items bought in a physical store.

Build a Customer Satisfaction Plan

Develop a strategy for customer satisfaction that encompasses omnichannel inventory management to ensure the success of your business. Developing a procedure for following up on and addressing customer inquiries or issues.

Creating a customer satisfaction program demonstrates to patrons that you care about their experience and that you’re dedicated to resolving any issues that may arise.

It doesn’t need to be challenging to devise a customer satisfaction plan. But, it should be tailored to your business and include the following elements:

A system for tracking customer complaints or questions
A plan for how you will handle returns and exchanges
A process for responding to customer feedback
A clear, concise, and easy-to-understand return policy

It is essential to keep customers content in the retail sector. Taking this action will bring back clients who will provide positive feedback about your business.

Stock Your Inventory Across Multiple Locations

At the beginning of internet commerce, it was enough to place all of your merchandise in a single centralized spot. As business flourished, it soon became evident that this strategy was not the ideal approach to managing a high volume of products.

It is typical in this day and age for businesses to hold stock in a variety of different places. This method has several benefits. It gives you the opportunity to bring your merchandise nearer to your consumers, which can assist in the speed of delivery. Having a backup option allows you a cushion of protection if something goes wrong in one of your stores, such as in the instance of bad weather.

In conclusion, if the merchandise you are handling is ephemeral, it is beneficial to always possess an alternative plan.

How Long Will it Take to Implement an Omnichannel Inventory Management Solution?

The amount of time needed to put in place an omnichannel stock control system depends on how big and intricate your company is. Nevertheless, corporations should count on resuming operations within several months.

If you are seeking an instant resolution, there are a few steps you can take to get moving. Assess how much stock you currently have in hand and where it is situated. This action will provide you with a strong foundation to build an omnichannel plan.

Begin considering how you would like your clients to engage with your company. Do you want customers to have the option of buying something on the internet and then retrieving it in person? Would you prefer to be able to provide customers with an effortless experience in which they can make purchases through the internet and have them delivered right to their homes?

Once you are aware of what you want to accomplish, you can commence your search for methods that will help you reach those goals. Take the necessary time to explore the various choices that are available so you can locate the ideal solution for your organization.

The Breakdown: Omnichannel Inventory Management

To put it succinctly, omnichannel inventory management is a way for businesses to keep track of their inventory in all available outlets.

This setup can be hugely valuable for organizations, as it enables them to get their goods nearer to their patrons and offers extra support should any of their storehouses be having complications.

Additionally, using omnichannel inventory management can assist businesses in having a better comprehension of their customer’s demands and desires. It may be a slow process to get omnichannel inventory management set up, however, the rewards will be well worth the effort in the end.