One of the most critical components in customer experience on the internet is having a low lead time between placing an order and receiving the product.

Thus, efficient inventory management becomes one of the integral components for success in this e-commerce jigsaw puzzle. In recent years, several direct-to-consumer e-commerce brands have flourished in India by banking solely on various inventory management techniques including the use of ERP integrations.

Top 9 Inventory Management Techniques for Business Scaling

Inventory management is important for businesses because it enables effective control and optimization of their stock levels. By keeping track of items, companies can prevent stockouts, reduce excess inventory products in stock, and enhance customer satisfaction by ensuring products are available when needed. 

In current times, when every brand is vying for the narrowing attention span of the customer and where the crowded marketplace makes it difficult for brands to stand out, efficient stock management techniques can enable you to build a solid case for your brand. You can leverage various effective inventory management techniques to build a successful business in 2024 

Let us look deeply into various types of inventory management methods and understand how you can build a competitively ahead business with stock management.

Types of Inventory Management Techniques

A business can adopt several inventory management methods, but accurate inventory is crucial for success Some of the most popular ones are as follows:

1. ABC Analysis

Under this method, the stock manager is expected to identify the most popular and least popular types of stock and manage the inventory control accordingly, taking into account inventory levels. This is useful for businesses that sell a wide variety of products at different price bands. It is particularly useful for businesses in fashion and entertainment, among others. 

 2. Just-in-time (JIT) Method

As the name suggests, you are expected to maintain the lowest level of stock possible under this method and expect the goods to roll in just before they are supposed to be dispatched. Toyota perfected this method as part of its car manufacturing process. While it can result in capital savings, it is a risky proposition to follow the JIT method, as an unexpected demand surge can cause a shortfall in raw materials. To mitigate this risk, it is recommended to maintain a safety stock of inventory, also known as the reorder point.

 3. Dropshipping

Under this method, businesses are expected to outsource all aspects of managing the inventory, including warehousing. This method has some benefits but is suitable for only some businesses that do not rely on efficient stock management as the success factor. It is particularly useful for businesses that want to get into e-commerce but cannot afford or justify the cost of a warehouse of inventory management. 

 4. Bulk Shipments

Businesses following this technique assume that bulk buying is always cheaper. This is good for businesses where the products have consistent demand and will see a sudden increase in demand level. It is useful for businesses that have a majority of the production process done in-house and can handle unexpected demand surges. 

 5. Consignment

Under this method, the consignor (wholesaler) gives possession of the goods to the consignee (retailer). The consignee is expected to pay the consignor only after selling the goods in the market. This method is most popular in the informal sectors of the economy but can be made more efficient with the use of inventory management software.

 6. Cross-docking

Under this method, you are expected to hold the stock for the least amount of time. As soon as the goods are received, they are packed and shipped for real-time delivery, ensuring efficient fulfillment. This system theoretically eliminates the need for any stock. This method is useful for e-commerce businesses that are following the marketplace model. 

 7. Barcode Scanning

This method involves scanning a barcode before you handle an item in the warehouse. The fact is that barcodes are affordable, and human mistakes are costly. Therefore, it is important to have a system that lets you follow a scanning system to receive, ship, or alter an item in a business. It is particularly relevant for companies with more than a handful of items to handle,  as it ensures efficient replenishment of inventory.

8. Backordering

A backorder is when a business is open to accepting orders for the stock that it does not have in the warehouse when the order is placed. Backordering works well for pre-launch or products that have a strong hype driving their growth. It is particularly relevant for products with a history or which have a celebrity driving strong word-of-mouth marketing. This process of ordering products that are not currently in stock is known as backordering.

 9. Demand Forecasting

This method uses predictive analysis to forecast the possible changes in consumer demand in the future. In today’s business environment, it is critical to have a strong demand forecasting strategy on your side to foresee the expected changes in the marketplace. A good technology platform will let you access such data analytics, which can equip you to make such demand forecasts.

Conclusion

These are the most popular inventory management techniques that you can adopt in your business to make your processes more efficient. With the e-commerce industry expected to grow rapidly in the coming years, the inventory management system is expected to become all the more significant for the success of any business.

Schedule a FREE demo with Unicommerce Warehouse Management consultants.

Suggested Read:

• How does Warehouse Management System Works?
• Role of Warehouse Management in the FMCG Industry in India
• Solutions, Strategies & Benefits of the D2C Business Model
• Apparel Industry in India – Trends, Challenges, Opportunities & Solutions
• Footwear Industry in India – Trends, Challenges & Solutions
• How to Sell on Lazada Marketplace in Southeast Asia?
• How to Sell on Noon in the Middle East?
• Key E-commerce Challenges & Opportunities in Malaysia
• Omnichannel Retail Trends in the Middle East
• Order, Inventory, And Logistics Management Challenges in the UAE

The post Top 9 Inventory Management Techniques for Business Scaling appeared first on unicommerce.com.

Deploying an agile barcoding system = managed and efficient inventory management. Why? Barcoding can simply save all the hassles of manually tracking and monitoring the inventory by giving you quick access to your product along with its description, availability in the warehouse, prices, and many other aspects. Additionally, for large businesses with diverse and complex product lines, a barcode scanning system monitors inventory, tracks assets, creates orders while enhancing operational efficiency. 

In a nutshell, an inventory management software works best with a fast and accurate barcoding system and becomes completely necessary if you:

• Manage your inventory on a big scale in a warehouse
• Have vendor alliances who rely on barcode scanning
• Sell through multiple sales channels online/offline

As useful as a barcode inventory management system is, the process to fully equip your warehouse and utility centers with this system can be a little tricky and time-consuming. And there are plenty of tools that support this low-cost data collection technology. But which one is best for your business? 

Let us understand what exactly a barcode is, and how you can manage inventory  & warehouse efficiently using barcodes. 

What are Barcodes – 1D Barcode vs 2D Barcode

Barcodes are a machine-readable representation of numerics and characters. They generally consist of bars and spaces and are used in tracking inventory at an operational level. While it is difficult for a person to manually store letters and numbers in the backend system, a barcode scanner device can track multiple characters at a single point in time, saving both time and money. 

Barcode tracking or scanning is the method to streamline inventory allocation, tracking, and maintenance. When scanned, each barcode exhibits specific information and data about each item from the Universal Product Code (UPC) which is then transferred to your online inventory database. The labels and functions on your inventory can also be easily customized as per industry standards to help you be updated.

Typically, a barcode system is classified into two different types; 1D and 2D. Although the scanners might seem simple, it’s important for you to distinguish between the two hardware types as their contrasting functionalities make a lot of difference.

1D Barcodes

One-dimensional barcodes come in numeric and alpha-numeric forms. They are a unique combination of vertical bars of different widths and numbers. The space present between the lines generally allows the scanners to recognize the product. While these types of barcodes are used to track inventory including raw materials, finished products, products sold, etc., you can also use them to track fixed assets for keeping financial records balanced. Some types of 1D barcodes are; USPS IMB, Code 39, UPC-E, EAN 128, EAN-13, etc. 

2D Barcodes

The two-dimensional barcodes provide more information to the user as compared to 1D barcodes. These types of barcodes include a combination of small lines and dots. They are generally designed as a squared-shape figure with multiple pixelated dots or geometric figures. With a single scan, these types of barcodes can disclose data, such as quantity, price, web address, image, etc. The QR code is one of the examples of these types of barcodes. Some of the examples of the 2D scanners are; Aztec, MaxiCode, Data Matrix, PDF 417, etc.

Now let us try to decode the barcoding scanning system in-depth and understand how it makes a difference for you in your efforts to manage your warehouse inventory.  

How can you Streamline Inventory Management across Warehouses with Barcode Scanning?

Due to the uniqueness of barcodes, there is no or very little room for errors. That’s what makes it best to manage your e-commerce business. Now let us try to decode how a barcode system makes a difference for you in your efforts to manage inventory & warehouse. 

Here are a few of the main reasons why you need a barcode system in your warehouse!

1. Organize inventory and warehouse operations easily

Since a barcode consists of a huge chunk of data including the product specs, SKU code, date of manufacturing, expiry date, country of origin, etc., which in its absence is hard to record manually. This detailed information not only lets you organize inventory in a systematized manner but also saves you from huge losses. Assume; you want to follow the FIFO system in your warehouse but checking the expiry date of each item will both consume more time and money. With barcode scanners in handy, you can process huge chunks of data within minutes by a simple scan and derive conclusive results based on real-time updates, benefitting your overall profitability.

2. Minimize the Duplication of Resources

In the warehouse, there is an increased chance for an item to get lost or misplaced. But with the help of barcode scanners, locating items in bins or shelves becomes easier, saving the unnecessary duplication of time & resources. Additionally, barcodes allow you to trace your inventory in cases of theft, wrong, and or damaged deliveries all at a single panel right at your fingertips.

3. Manage Maintenance, Repairs, and Operations (MRO) Easily

While some part of the inventory is meant to be picked and packed for shipping to the customers, another part of it is kept for maintenance, repairs, and operations (MRO). It generally consists of materials that are used in production processes and are not a part of the end product directly. For instance, you run an e-commerce business of fashion apparel. Now imagine, during the peak holiday season, you have a large volume of orders to be fulfilled but all of a sudden you ran out of some important spare parts. But if you would have a barcode scanner to scan your warehouse essentials your day would have been saved. Thus, using a barcode for MRO is imperative. 

4. Control over Information

Crucial information about various assets can be easily tracked with the help of barcode scanning and this enables each business to print and customize additional information that they wish to share with the end-users. From the built and type of inventory to the locations from where it has been sent, all can be detailed in the barcode labels.

5. Maintain Error-Proof Results

Manual dependency tends to increase the chances of errors. Ask yourself; is feeding inventory data into sheets easier for you? Maybe for 50 or 100 products, but not when you have to manage thousands of items at once. If you have a barcode system in place, you would be able to track any sort of inventory discrepancy. While you will be saved from shipping the wrong item to the wrong address, it will also reduce order returns. Thus, with barcoding, the chances of error become almost null increasing your productivity and with little to no room for data miscalculations.

6. Higher Savings

Automation not only cuts back on manual dependencies but also reduces the overall cost to a company to manage its inventory and warehouse operations. Barcoding helps you reduce labor and training costs and gives you complete visibility of inventory to help you assign work accordingly.

7. Improve the Cycle Count Process

Using Cycle Count in your warehouse surely enables you to reduce or eliminate the need for periodically or annually counting the physical inventories. But ask yourself that if your barcode system is intact then how easier will it become to implement the process. From checking the shelf location to verifying the physical count of inventory to reconciling any sort of missing inventory, everything will be sorted with a barcoding system. 

Improve your Overall Business Operations and Minimize Time & Cost Using a Barcode System!

With the overall benefits that a well-implemented barcode system can provide you, there surely are some specific improvements that you will see in your warehouse management within a short period of time post transitioning. While a barcode system in place can accelerate your business growth, it definitely possesses the power to simplify and ease out the entire process of tracking and chances of human errors. Not to mention, the bigger your business grows, the greater your operational requirements increase. But with low-cost and portable tools such as barcode scanners, you can decrease human errors and cut any sort of operational costs.

Related read –

• How does Warehouse Management System Works?
• Healthcare Industry in India – Growth Drivers, Challenges, Solutions
• Role of Warehouse Management in the FMCG Industry in India
• E-commerce Apparel Industry: Trends, Challenges, Opportunities & Solutions
• UniShip – Advanced Shipping Tracking Platform
• UniReco – E-commerce Marketplace Payment Reconciliation
• Key Challenges & Benefits of Marketplace Payment Reconciliation
• Benefits of Shipping Notifications
• E-commerce Shopify Integration with Unicommerce
• Why Pick List is Important for Warehouse Operations?
• What is Inventory Cycle Counting?
• Benefits of Inventory Management Software
• Why E-commerce businesses need Inventory Management Software?
• Why is Inventory Management Important for E-commerce Business?
• Inventory Management Techniques for Business Scaling

Read how Businesses are growing with Unicommerce –

• How a Fashion & Accessories Brand Managed 145 Stores
• How Chumbak boost sales across 58+ Retail Stores with a 99.99%+ fulfillment rate
• Establishing effortless business operations & tremendous growth for Iconic Fashion India
• How TCNS Clothing Co. Ltd achieve 9X Growth in Sales

The post How can you Streamline Inventory Management using Barcode Scanning? appeared first on unicommerce.com.

From the sourcing of raw materials to the final delivery of the product, the supply chain is a continuous flow of goods and services. The storage of these items is critical to the process and plays a pivotal role in logistics. This is where a robust ERP warehouse management system (WMS) comes in, eliminating bottlenecks such as volatile supplies and delays.

However, before delving deeper into the intricacies of WMS, let’s establish a foundational understanding of the fundamental aspects of warehousing.

What is Warehouse Management?

Warehouse management refers to the efficient and systematic control of various operations within a warehouse. It involves overseeing and optimizing the processes related to inventory management, storage, picking, packing, and shipping of goods. The primary goal of warehouse management is to ensure that the right products are in the right place at the right time, minimizing costs and maximizing efficiency throughout the supply chain.

Benefits of Warehouse Management

Implementing a Warehouse Management System (WMS) offers numerous benefits that significantly enhance the efficiency, accuracy, and overall performance of warehouse operations. Some of the key benefits include:

• Enhanced inventory accuracy with real-time tracking 
• Increased efficiency and productivity
• Maximized warehouse space with intelligent storage strategies
• Accurate order fulfillment
• Improved visibility and control with real-time insights
• Lowered operational expenses related to labor, inventory, and fulfillment
• Prompt and accurate order deliveries that enhance customer experience

Principles of Warehouse Management

Effective warehouse management involves several principles to ensure smooth operations and optimized efficiency. Here are three key principles:

1. Organization and Layout Optimization

• Efficiently organizing the warehouse layout is crucial. Design the floor plan to minimize travel time for picking, packing, and storing goods. 
• Implement logical categorization and labeling systems for inventory items to facilitate easy identification and retrieval.
• Utilize space wisely by employing shelving, racking, or automated storage systems to maximize storage capacity.

2. Inventory Management and Control

• Maintain accurate inventory records through the use of a robust inventory management software.
• Conduct regular cycle counts and reconcile inventory to prevent discrepancies and avoid stockouts or overstock situations.
• Implement inventory forecasting techniques to anticipate demand and adjust stock levels accordingly.

3. Optimize Operational Processes

• Streamline warehouse workflows by establishing efficient receiving, storing, picking, and shipping procedures.
• Implement lean management techniques to reduce waste, minimize errors, and improve overall operational efficiency.
• Use technology such as barcode scanners, RFID (Radio-Frequency Identification), or WMS (Warehouse Management Systems) to automate and optimize processes.

What is a Warehouse Management System (WMS)?

A Warehouse Management System, or simply e-commerce WMS, is a software application that helps manage and optimize the operations of a warehouse by providing real-time visibility into inventory levels. From the moment a shipment enters the warehouse to the moment it leaves, the WMS tracks every step and keeps everything running smoothly.

But the WMS is more than just a tracking system. It’s a mastermind of efficiency that maximizes labor and space utilization while coordinating and optimizing resource usage and material flows. In short, it’s the secret weapon that allows companies to operate warehouses like a well-oiled machine. With a fully integrated cloud-based WMS, you can easily achieve 100% inventory data accuracy, allowing you to process orders and replenish goods more efficiently. 

Inventory Management vs Warehouse Management

Inventory management and warehouse management are interconnected but distinct aspects of e-commerce operations. Inventory management involves overseeing the quantity, location, and movement of goods throughout the supply chain to meet customer demand efficiently, minimizing costs, and optimizing stock levels. 

Warehouse management, on the other hand, focuses on the physical storage, organization, and handling of inventory within a warehouse facility, ensuring streamlined operations, efficient picking, packing, and shipping processes, and the utilization of space and resources to facilitate smooth logistics operations.

While inventory management deals with the broader supply chain, warehouse management specifically concentrates on the activities within the warehouse premises to ensure effective handling and movement of inventory. Both are integral parts of logistics and supply chain management, working together to ensure timely and accurate delivery of products to customers.

Types of Warehouse Management Systems

Warehouse Management Systems (WMS) come in various types, each catering to specific needs and operational requirements within the warehouse. Here are some common types of Warehouse Management Systems:

• Standalone WMS: A standalone WMS operates independently and is not integrated with other systems like ERP (Enterprise Resource Planning). It focuses solely on warehouse operations, offering functionalities such as inventory tracking, order picking, packing, and shipping.

• ERP-Integrated WMS: Many WMS are integrated within broader ERP systems. These systems combine WMS functionalities with other business processes like accounting, human resources, and customer relationship management. This integration ensures seamless data flow between different departments within an organization.

• Cloud-Based WMS: Cloud-based WMS solutions are hosted on remote servers and accessed through the Internet. They offer scalability, flexibility, and accessibility from any location with an internet connection. Cloud-based systems often come with subscription models, reducing the need for upfront infrastructure investments.

Understanding the Workflow of a Warehouse Management System (WMS)

Process of Warehouse Management System are:

• Step #1: Receiving
• Step #2: Putaway
• Step #3: Storage
• Step #4: Picking and Packing
• Step #5: Shipping and Quality Control
• Step #6: Reporting

It’s important to understand the workflow of a warehouse management system (WMS) in order to optimize operations and improve efficiency. The typical workflow of a WMS includes the following core functionalities:

Step #1: Receiving

Receiving Workflow in Warehouse Management System –

• Pre-receiving
• Receiving & Unloading Stocks
• Inspection of received inventory
• Putaway

The first step in a warehouse management system is “Receiving.” This step ensures that the right product has been received in the right quantity, quality, and location and at the right time. To make this process even more efficient, a powerful warehouse management system allows businesses to input key purchase order details such as delivery and expiry dates, as well as vendor information. Once everything has been received and verified, a Goods Received Note (GRN) is created to confirm that all the goods have indeed been received.

Step #2:Putaway

Putaway Workflow in Warehouse Management System –                              

• Operator to scan barcode
• Transfer goods to location
• Scan and puts away in location
• Putaway confirmed

After the receiving process is complete, the goods need to be moved from the receiving area to their designated storage locations. This process is called putaway, and it is critical to ensure that products are handled correctly during this process to avoid costly damages. 

Fortunately, a well-designed warehouse management system (WMS) can help businesses avoid these issues by facilitating the creation of efficient putaway processes that optimize operational productivity.

Step #3: Storage

Storage is a vital aspect of any business that ensures the proper placement of goods in the warehouse. The goal is to maximize storage efficiency while minimizing errors and damage to goods. But how can this be achieved? That’s where Shelf Management comes into play. 

It involves the strategic arrangement of goods on shelves to optimize space utilization, minimize errors, and prevent damage to products. By properly executing this process, businesses can maximize their available storage area and increase productivity. 

Step #4: Picking and Packing

Picking & Packing Workflow in Warehouse Management System – 

• Receive
• Process
• Pick
• Pack
• Inventory
• Ship

Picking and packing are integral components of order fulfillment, and optimizing these processes can significantly reduce costs. When order details are received, they can be passed on to warehouse staff through a picklist generated using WMS. This list provides essential details to the picker, including order information, item details, shelf locations, barcode scanning, and batch/lot numbers. 

Suggested reading – What is order picking in a warehouse?

The products are selected from the warehouse using handheld devices that scan each item’s barcode. Once the items have been picked, they are packed in a way that minimizes the risk of damage during transportation. Shipping labels are generated, and an invoice is created to accompany the order.

Suggested reading – What is the packing and dispatch process in a warehouse?

Step #5: Shipping and Quality Control

Shipping and Quality Control in Warehouse Management System – 

• Receiving
• Shelving Putaway
• Picking Kitting
• Packing
• Shipping

The shipping and quality control (QC) process marks the end of the journey for goods. This step is particularly important, as it has a direct impact on the customer experience. Incorrectly shipping products to the wrong customers can result in negative feedback. 

To avoid such scenarios, it is important to have robust QC measures in place, such as order verification, packing inspection, barcode scanning, weighing checks, etc. With automated WMS software, this process also gets automated, simplifying the order routing process. 

What are the Benefits of Deploying a Centralized Warehouse Management System?

Let us walk you through the benefits of WMS so that you can understand its significance in streamlining your e-commerce operations! Top Benefits of Deploying a Centralized Warehouse Management System – 

• Better Inventory Control with Quick Dispatch Time
• Reduced Manpower Costs and Errors
• Improved Auditing and Security
• Simplified Billing and Taxation Management
• Enhanced Customer Experience
• Increased Scalability and Flexibility

1. Better Inventory Control with Quick Dispatch Time

Inventory management is critical to the success of any business, particularly in the retail industry. For this, you need an efficient WMS that can consolidate and sort inventory quickly. This allows for bulk order processing and reduces order preparation time, resulting in quick dispatch of orders. 

Implementing a WMS also provides access to detailed information on the location and status of each Stock Keeping Unit (SKU), including which batch it belongs to and its location within the warehouse. Barcoding is a commonly used identification method whereby each item is assigned a unique code that can be scanned or tracked as it moves through the warehouse.

With this information readily available, businesses can make informed decisions about inventory levels and restocking, which can help prevent stockouts and overstocking.

Read: E-commerce Warehouse Management System Case Study – 35% Increase in Order Flow for the Largest E-commerce Footwear Brand in India

2. Reduced Manpower Costs and Errors

A powerful warehouse management system (WMS) can significantly reduce manpower costs and minimize errors in your warehouse operations. This is achieved through the automation of various functions, including inventory tracking, sorting, picking, and order processing. 

With a WMS in place, your warehouse can also benefit from systematic inventory placement and quality checks, which can further reduce the risk of manual errors while enhancing overall efficiency. One of the key advantages of using a WMS is that it allows you to optimize both inward and outward warehouse operations. 

This ensures that only high-quality, accurate products are delivered to end customers, preventing the delivery of defective products and ultimately reducing customer complaints.

3. Improved Auditing and Security

Auditing and security are crucial components of any warehouse management system. The sheer amount of inventory and transactions taking place on a daily basis can make it difficult to keep track of everything, let alone prevent theft or loss of goods. That’s why most warehouse management systems enable multiple employees to use the software while also linking specific users to specific transactions.

This creates a level of transparency and accountability that is essential for maintaining a secure and efficient warehouse. With each transaction tied to a specific employee, it becomes much easier to pinpoint any issues that may arise. 

4. Simplified Billing and Taxation Management

A warehouse management system (WMS) is more than just a tool for inventory management. With a reliable WMS in place, you can streamline your billing process, which is a critical aspect of any business. Failure to manage your bills correctly can result in significant losses.

Fortunately, most WMS solutions come with pre-integrated third-party apps that can improve your ability to manage bills from a single screen. In addition to simplifying the billing process, an advanced WMS can also help you comply with government taxation standards by streamlining the tax calculation process for invoices.

5. Enhanced Customer Experience

Customers are the lifeblood of any business, and a centralized warehouse management system can help you focus on improving your customer’s buying journey and enhance their overall experience. 

Businesses can quickly and accurately process customer orders and track the progress of each order from start to finish. This allows for timely and accurate communication with customers regarding order status, shipment tracking, and delivery times, which can greatly enhance the customer experience.

6. Increased Scalability and Flexibility

As your business grows, so will your warehouse management needs. With a centralized WMS in place, you can easily scale your operations to accommodate changes in demand, seasonality, or expansion into new markets.

A WMS can also provide flexibility in managing different types of products and order fulfillment models, such as dropshipping or third-party logistics, allowing businesses to adapt to changing customer demands and preferences.

What are the Features of a Warehouse Management System (WMS)?

A well-organized and structured warehouse with reliable and efficient performance is a huge asset for retail business. Here are the essential WMS features that can help you attain operational capabilities:

• Batch Management
• Cycle Count
• Shelf Management
• Bundle Management
• Barcode Scanning
• Returns Management

1. Batch Management

Batch management is an important feature of a warehouse management system that helps to manage and track inventory based on batches or groups. Batches represent distinct collections of products that share common characteristics such as manufacturing dates, expiration dates, or production lots. This feature is particularly useful in industries where products have a limited shelf life, such as the food, pharmaceutical, and cosmetics industries.

By grouping inventory into batches, businesses can minimize the amount of waste produced from expired or spoiled inventory. Additionally, batch management allows for the implementation of expiry management methods like FIFO (first in, first out) and FEFO (first expiry, first out). These methods enable stock rotation based on manufacturing and expiry dates, which helps to prevent the buildup of old inventory and avoid any potential damage from prolonged storage.

2. Cycle Count

Do you remember the days of the dreaded annual inventory count that would take forever? Well, thanks to the cycle count feature in Warehouse Management Systems (WMS), those days are long gone! 

With regular inventory counts on a daily, weekly, or monthly basis, businesses can now maintain accurate records, avoid stockouts, and optimize their warehouse operations. And the best part? Businesses can now have real-time updates on their day-to-day operations, making their supply chain management more efficient than ever before.

3. Shelf Management

Shelf management is an essential component of effective warehouse operations. It refers to the process of organizing and arranging products on shelves in a way that maximizes space and ensures efficient picking and restocking. Proper shelf management can significantly improve the overall productivity of a warehouse.

One way to achieve optimal shelf management is by using a robust Warehouse Management System (WMS). A WMS can assist in identifying the most suitable storage location for each product based on its attributes, such as size, weight, and demand frequency. This helps to ensure that products are arranged in a logical order, minimizing the time taken to locate them during picking and reducing errors.

4. Bundle Management

Product bundling is a popular sales strategy in which multiple SKUs are packaged together and sold as a combo pack to customers. While bundling offers benefits such as increased sales and customer satisfaction, it can be challenging to manage the various processes involved, from monitoring product availability to managing inventory for multiple sales channels.

The Bundle Management feature of a WMS can help to streamline these processes by allowing businesses to define bundle products as a group of individual SKUs, with each SKU being tracked individually. This enables businesses to monitor the availability of each SKU, ensuring that bundles are only created when all the SKUs are in stock.

5. Barcode Scanning

Barcodes are machine-readable representations of numeric and alphanumeric characters, typically consisting of bars and spaces. Barcodes offer several benefits in warehouse management, including improved accuracy, efficiency, and productivity.

The advanced barcoding feature provided by the WMS allows for the capture of accurate and intricate details of inventory at the item, SKU, and batch levels. This ensures that each item is uniquely identifiable and traceable, making it easier for businesses to track inventory movements, identify stock levels, and ensure timely replenishment.

6. Returns Management

With the rise of online shopping, customers have come to expect an easy and hassle-free returns process, which puts pressure on retailers to provide a seamless experience. To meet this demand, businesses require a robust Warehouse Management System (WMS) that can efficiently handle returns by simplifying the entire process, from authorizing returns to processing refunds or replacements.

Furthermore, the WMS returns feature allows businesses to manage e-commerce returns from various channels to multiple warehouses using a single system. For instance, if an order was processed from warehouse A, the return can be directed to warehouse B, which may be closer to the customer. This functionality simplifies the returns process, and minimizes potential errors and delays associated with handling returns across multiple platforms.

Factors to Consider When Selecting the Right Warehouse Management System for Your Business

Now that you know why a WMS is important, here are the key factors to consider when selecting the right WMS for your business:– 

• Centralization of Multi Warehouse Inventory Management
• Real-Time and Customizable Reporting
• Third-party Integrations
• Virtual Multiple Warehouse Inventory Management

1. Centralization of Multi Warehouse Inventory Management

As customer demands continue to grow, businesses are exploring new ways to manage their operations in multiple warehouses simultaneously while maintaining a centralized view. Therefore, first and foremost, the WMS of your choice should centralize key tasks, such as automated stock level management, location allocation across multiple warehouse sites, real-time e-commerce inventory management, automated purchase management, shipment routing and tracking, and order management from multiple points of sale. 

2. Real-Time and Customizable Reporting

Next, you need real-time information access about what’s going on in your warehouse to manage stock inventory effectively. You require a bird’s eye view of which stock units are in demand and which haven’t moved at all, geographic market-specific demand variations, and seasonal trends. 

You should also be able to generate customizable reports to analyze inventory status and strategize warehouse utilization. An online multi-warehouse management system can enable you to achieve this, as the information remains remotely accessible and available in real-time. 

3. Third-party Integrations

By integrating the WMS with other third-party applications, businesses can streamline various processes such as logistics, marketplace management, accounting, sales and CRM, and more. 

A smart WMS should provide sophisticated tech stack solutions that seamlessly integrate with other software systems used in your business. Not only can this save time and resources, but it can also provide a more complete picture of your business operations.

4. Virtual Multiple Warehouse Inventory Management

Unutilized or under-utilized warehouse space increases your inventory carrying cost and burdens your value chain, even when you have a network of multiple warehouses to match market demand. To address this issue, you need a multi-warehouse management system that gives you a complete virtual view of warehouse space.

A virtual multiple warehouse management system allows you to manage your inventory across multiple warehouses as if they were one. You can view all your warehouses’ inventory levels in real-time and manage them from a centralized location.

Future-Proof your Business with Advance WMS!

An effective warehouse management system (WMS) enables you to perform plenty of tasks with utmost efficiency and accuracy. It also helps you ensure that your business is equipped to handle the challenges of tomorrow. 

From optimizing inventory management to enhancing order fulfillment, a WMS can help you achieve operational excellence and drive growth. So what are you waiting for? Go ahead and deploy a robust WMS technology in your system today and reap the benefits of automation.

See how to improve Inventory Visibility & accuracy with E-commerce focused Warehouse Management System –

Frequently Asked Questions (FAQs)

Q1. How long does it take to implement a Warehouse Management System?

Ans: The time it takes to implement a Warehouse Management System can vary depending on the size and complexity of the warehouse, as well as the specific needs of the business. However, implementation can typically take six to eight months. 

Q2. Can a Warehouse Management System be customized to meet specific business needs?

Ans: Yes, many Warehouse Management Systems can be customized to meet the specific needs of a business. This can include adding new features, modifying existing workflows, or integrating with other software.

Q3. What types of businesses can benefit from using a Warehouse Management System?

Ans: Any business that has a warehouse or distribution center can benefit from using a Warehouse Management System. This includes businesses in industries such as retail, manufacturing, wholesale distribution, and logistics.

Explore our platforms:

• Integrated logistics management system
• Automated payment reconciliation system

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• Why Should you Deploy a Warehouse Management System?

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More and more brands are shifting towards the D2C model of selling, where they want more customers to engage with their brand website. As brands make this leap into the D2C realm, a common challenge emerges—the need to streamline inventory. 

In order to achieve that, it is crucial that your D2C brand needs comprehensive strategies and tactics to manage your inventory efficiently. In this blog, you’ll learn about the contemporary art of inventory management and build the brand that you seek to build, ensuring a competitive edge in the market.

Strategies and Tactics to Optimize Your D2C Inventory

In your pursuit of a seamless D2C experience, you’ll encounter various challenges that necessitate tailored strategies and tactics. Let’s delve deep into the strategies and tactics that will empower you to conquer the intricacies of webstore inventory management, ultimately setting your brand on a path to success.

1. FIFO, FEFO

FIFO (First-In, First-Out) and FEFO (First-Expired, First-Out) are inventory management methods crucial for industries dealing with perishable or time-sensitive products.

– FIFO (First-In, First-Out): This method ensures that the oldest inventory is sold before the newer ones. It prevents products from becoming obsolete, reducing the risk of waste. For D2C brands, especially in the fashion, footwear, home furnishing, and electronics industries, FIFO helps maintain compliance with quality and regulatory standards. 

– FEFO (First-Expired, First-Out): In industries where product expiration is a critical concern, FEFO is paramount. It prioritizes products with earlier expiration dates, ensuring that they are sold before newer ones, preventing dead inventory in the warehouse. This maintains product quality and compliance and is critical in the FMCG Industry, Healthcare, and Beauty & Personal Care industry. 

The pioneering pet-care brand, Supertails, exponentially reduced the occurrence of expiration and wastage of products by implementing the FEFO strategy, which enabled them to sell their products efficiently and achieve an 18% reduction in returns.

2. Barcode Scanning

Barcode scanning is an essential technology for optimal inventory management in the D2C space. It involves assigning unique barcodes to each product, allowing for accurate tracking and identification. This is particularly beneficial for brands dealing with products that have minor variations.

Furthermore, Barcode scanning streamlines order processing, reduces the likelihood of errors, and enhances inventory accuracy along with the picking process in the warehouse. It enables quick and precise identification of products, facilitating smooth operations from warehouse to customer doorstep.

Many brands, including a leading men’s shoe brand Attitudist, used advanced item traceability at the SKU level to empower their ability to track different aspects of inventory, such as cost, expiry, manufacturing details, etc., and gained complete visibility into the lifecycle of their products, allowing for efficient inventory management and informed decision-making.

3. Real-time inventory management 

In the dynamic landscape of D2C, real-time inventory management emerges as a pivotal strategy. This approach provides brands with instantaneous insights into stock levels, order status, and product movement across various marketplaces and brand websites. For brands navigating the swiftly changing preferences of consumers, real-time inventory management serves as a game-changer.

With this robust system, your brand can consolidate its entire inventory onto a single dashboard, offering a comprehensive overview. This centralized control allows for immediate decision-making, minimizes the risk of stockouts or overstocks, and significantly reduces customer returns. Picture having the ability to track product availability, sales trends, and order fulfillment in real time—all at your fingertips.

Leading D2C players, such as Mamaearth, embraced real-time inventory management to get a  centralized automated system. The result? A streamlined process, optimized inventory levels, inventory allocation for bulk orders, and a 300% reduction in returns, positioning them for sustained growth in the competitive D2C landscape.

4. Demand Forecasting

Demand forecasting involves predicting future customer demand for products based on historical data, market trends, and other relevant factors. It is a crucial aspect of inventory management, enabling brands to align their stock levels with anticipated demand.

For D2C brands with ever-changing trends, accurate demand forecasting is invaluable. It helps prevent stockouts, excess inventory, and missed sales opportunities. By understanding customer preferences and market trends, brands can optimize their inventory levels, keeping inventory slim and ensuring that products are available when and where they are needed. Adopting Demand Forecasting as a strategy can help predict future trends, ensuring that inventory remains relevant and in demand.

The Significance of Optimizing Webstore Inventory

• Gain Deeper Customer Insights
• Improve Operational Efficiency
• Enhance Customer Experience
• Minimize Stockouts and Overstocking

A D2C brand’s evident goal is to strengthen customer relationships and understand what customers expect from a brand. Having delved into Strategies and Tactics to Optimize your D2C Inventory, let’s see why all this planning and execution is crucial. Here are four solid reasons that make streamlined webstore inventory management an absolute game-changer:

1. 1. Gain Deeper Customer Insights: An advanced inventory management tool that can provide detailed sales reports and inventory snapshots in real-time. This comprehensive data allows your brand to understand customer preferences better—filter them from specific SKU’s geographical locations to track product success in the area. Further, you can also get a deeper understanding of your top-selling and slow-moving SKUs, aiding in product development and marketing strategies.
   2. Improve Operational Efficiency: Streamlining inventory processes reduces errors and delays in fulfilling customer orders by empowering the picking process and tracking the flow of the product in real-time. This results in minimal O2S time and fewer customer-initiated returns (CIR), thus enhancing operational efficiency.
   3. Enhance Customer Experience: Seamless inventory management minimizes stockouts and ensures product pricing remains constant across different marketplaces and your D2C website. This ensures customers find exactly what they are looking for. Moreover, automating inventory prevents delays and disruptions in processing orders efficiently, ultimately leading to higher customer satisfaction and greater brand loyalty. 
   4. Minimize Stockouts and Overstocking: Well-managed inventory significantly lowers warehousing expenses by reducing overstocking of slow-moving SKUs and stockouts of fast-selling SKUs. This allows for a more optimal use of your company’s resources while maximizing revenue. The strategic alignment of inventory with actual demand not only ensures resource efficiency but also captures every sales opportunity while avoiding revenue loss from dead stock or missed sales due to stockouts.

By employing a sophisticated Inventory Management System tailored to D2C operations, your brands can effectively address these crucial aspects, ensuring a competitive edge in the market.

Conclusion 

Optimizing webstore  inventory management is a critical endeavor for brands looking to thrive in the competitive e-commerce landscape. By understanding the unique challenges associated with D2C operations and implementing tailored strategies and tactics, brands can streamline their inventory processes, enhance customer satisfaction, and ultimately drive business growth. Embracing the contemporary art of inventory management is not just a strategy; it’s a pathway to building a resilient and customer-centric brand in the D2C era.

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Currently, the trends are shifting towards organic and natural products, along with an increased demand for Men beauty essentials, which underscores the new customer’s need for more personalized products. However, opportunities come with a set of challenges. Many brands have trouble coordinating the inventory across offline stores and online channels, including batching the inventory and expiry circulation of products, which leads to ineffective customer return management.

In this blog, we’ll delve into the exciting world of the cosmetics industry in India, exploring its trends, challenges, and realistic solutions in detail that would shape the future of your brand.

Trends and Opportunities in the Indian Cosmetics Industry

1. Growth of Natural and Organic Products

One of the most prominent trends in the Indian cosmetics industry is the shift towards natural and organic products. Consumers are increasingly seeking products with fewer chemicals and more natural ingredients. Take Mamaearth, for instance, a brand of the parent company Honasa Consumer, which progressed after the COVID-19 pandemic with a mission to provide 100% natural and toxin-free products with a blend of natural ingredients. Mamaearth’s dedication to providing customers with what they want resulted in a 400% growth amid COVID-19.

This inclination towards natural beauty has paved the way for homegrown brands that emphasize the use of herbal and organic components, which also makes the trend ever-relevant in the cosmetic industry.

2. Digital Influence on Beauty Choices

The digital age has brought about a revolution in the way consumers discover and purchase cosmetics. Social media influencers and beauty bloggers play a pivotal role in shaping consumer preferences and many brands promote their products in this way. Can you guess some of these brands?

In the vibrant realm of cosmetics, titans like Nykaa and Lakmé have carved their mark, particularly in the dynamic world of social media. Here, beauty enthusiasts seek recommendations tailored to diverse skin types and tones. These brands have recognized the immense potential of social media and influencers and used this power to create beauty products that cater to customers’ individual needs.

3. Male Grooming on the Rise

 The male grooming segment is witnessing significant growth. The Man Company, among many brands, realized that men are now more conscious of their appearance and are willing to invest in grooming products. This shift in mindset has opened up a new avenue of men-centric cosmetic products that understand the difference between men’s and women’s skin types and cater to the specific needs of men. This specificity is what paved the way for The Man Company’s Success.

4. Personalization and Customization

In a market as diverse as India, consumers are seeking products tailored to their specific needs and preferences. Customized skincare and makeup solutions are gaining traction, allowing brands to offer unique, personalized experiences that cater to specific skin types, tones, and concerns, creating a unique experience for each consumer.

Challenges Faced by the Cosmetics Industry

1. Seasonal Demand Fluctuations

Seasons change drastically in India, ushering in a massive shopping spree with the holiday season arriving simultaneously. The cosmetics industry witnesses a substantial surge in product orders and delivers them to customers in the shortest possible time, and the challenge arises to keep the inventory streamlined. Lack of knowing your customer preferences may lead to overstocking and stockouts, which most brands experience during these times. This not only leads to unwanted inventory in the warehouse but also cuts down revenue and results in a bad customer shopping experience.

2. Inventory Expiry Management

Cosmetics are subject to strict regulatory standards. Mishandling products with an expiry date can lead to dire consequences for your brand, from losing products before they even leave the warehouse to compromising revenue and valuable storage space. Moreover, shipping expired products not only erodes customer trust but also complicates return issues. 

3. Returns Management

Managing returns in the cosmetics industry is crucial for customer satisfaction and brand reputation. Despite best efforts, returns are inevitable. However, if not managed efficiently, it can lead to significant product waste. Inadequate processing and quality check of returned products not only result in wastage but leaves a hole in your brand’s finances and leave customers dissatisfied.

4. Order Fulfillment across channels

 Cosmetic brands like Mamaearth and Suger Cosmetics operate through various channels, including e-commerce platforms, physical retail stores, and their own direct-to-consumer (D2C) websites. However, synchronizing inventory across these diverse platforms can pose a significant logistical challenge. This lack of inventory integration between offline stores and online marketplaces may lead to sudden stock outs or overstocking, leaving the customer hanging and losing potential sales.

5. SKU Proliferation

The cosmetics industry grapples with a diverse range of SKUs due to variations in shades, packaging, and formulations. Striking the right balance between offering a wide range of such products and maintaining a lean inventory can be quite a juggling act. This is especially challenging, considering the ever-changing trends and evolving customer preferences over time. Brands, unable to keep up with these changing trends in the industry, tend to get dissolved with the competition.

6. Limited Shelf Space

As the cosmetic industry continues to grow, warehouses may face constraints in terms of available space. Inefficiencies in storage space utilization can impede your brand’s ability to maximize its potential storage space. This limitation might be the very factor holding your brand back from reaching its full sales potential and accelerating business growth due to limited inventory in the warehouse.

Industry-based Solutions for Challenges

1. Detailed Report Snapshots to Track Demands

To achieve high efficiency during seasonal fluctuations, employing a warehouse inventory management system is crucial to map fluctuations and adjust inventory levels accordingly to maintain slim inventory. Utilize flexible storage solutions for your brand like consumer buying patterns and filter it from SKUs to geographical locations to track product success throughout the country and accommodate changes in product demand.

2. Implementing Batching

The strategic practice of ‘batching’ the inventory enables utilizing the first-expiry, first-out (FEFO) and first-in, first-out (FIFO) options to ensure that older products are used or sold before newer ones, minimizing waste and maximizing profits. 

The Man Company faced a similar challenge, batching 1,000+ SKUs across 11 warehouses. But with batch-level traceability, The Man Company is able to track inventory using important attributes, such as cost, expiry, manufacturing, vendor, etc. Additionally, the batching feature also allowed the brand to identify soon-to-expire inventory and liquidate them accordingly while achieving minimal expiry and spoilage.

3. Efficient Return Management

Returns management, being one of the most cumbersome tasks, requires rigorous visibility of stock and returns processes that include a thorough product inspection. Additionally, quality-checking the product after returns in order to appropriate disposal of damaged or expired items and restocking of acceptable returns. See how Mamaearth rose above this challenge and achieved a faster inventory turnaround while attaining a drop in returns by 300%.

4. Managing Inventory Across Multiple Channels

Implementing an omnichannel strategy would empower your brand by creating a unified inventory pool for all your sales channels, not only minimizing logistics costs but also saving precious time. Additionally, you gain access to detailed real-time reports, all from a single dashboard. So, the need to manually update inventory to online channels and physical stores would become obsolete, subsequently giving your clients a unified shopping experience.

5. SKU Management and Barcode Scanning

Implementing robust SKU categorization and management techniques can significantly enhance inventory control which includes barcode scanning and labeling technology, ensuring accurate and efficient tracking of products, making the process smoother and more streamlined. Many leading cosmetic brands, among Wow Skin Science, Sugar Cosmetics, etc., use SKU categorization and barcode scanning to manage their complex warehouse operations in an effortless manner.

6. Implementing WMS

To overcome limited shelf space challenges, implementing a comprehensive warehouse management system (WMS) would enable your warehouse’s optimal shelf capacity for specific inventory and let you efficiently store products in the warehouse. Additionally, make use of high shelves to maximize vertical space. Investing in efficient storage solutions like pallet racks and mezzanines can significantly increase your storage capacity. 

By strategically organizing your warehouse, you can unlock untapped potential for storing cosmetics and ensure seamless operations. Many leading brands among Plum Goodness have implemented a strategic warehouse management system that enables them to seamlessly track inventory and fulfill customer orders. With full visibility on the inventory, Plum Goodness was able to get detailed reports of their overall business operations and experience a 69% growth in sales.

By addressing these challenges, the cosmetics industry in India can ensure efficient warehouse and inventory management, ultimately contributing to business growth and customer satisfaction.

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