Inventory Tracking Archives – unicommerce.com

How to Pick the Best Order Management System (OMS) for Your E-commerce Business?

Team Unicommerce — Sat, 28 Oct 2023 07:34:40 +0000

Introduction

In 2020, e-commerce changed forever. The industry recorded growth equal to 10 years within a short span of 3 months. This put a strain on the supply chain management system of every e-commerce business selling goods online to customers. They were forced to adopt various measures to cope with the huge rush for online goods and manage the supply of goods.

The key to the smooth handling of the massive spike in demand for goods online is to use an Order Management System (OMS) that can cope with customer expectations. On the other hand, it must allow the online business to compete with other players in the market.

Why do e-commerce businesses need a robust order management system?

As people are increasingly opting to purchase products online, many businesses created e-commerce portals as an extension of their physical stores. Thanks to the availability of high-speed internet connections, consumers have to simply visit the e-commerce portal to browse and select the desired items. E-commerce has changed the way business is done by brick-and-mortar stores. It has provided businesses, especially micro, small, and medium enterprises, with more opportunities to grow while reducing their cost of operating physical stores.

Hence, the global e-commerce landscape is set to grow from US$ 4 billion in 2020 to over US$ 6.5 billion in 2023. While on the one hand, this has created new opportunities to grow, on the other hand, this has also created challenges – how to manage rising inventory from online sales? How can seamless integration of operations be ensured? An e-commerce business’ reputation depends on how well it reacts to orders by online customers and how quickly it executes them.

This is when a business needs e-commerce order management system. While it is extremely tough and vital to provide a smooth shopping experience to online customers, choosing the right type of multichannel order management system is critical.

What is an E-commerce Order Management System?

An e-commerce Order Management System (OMS), also called an online order management system, allows online businesses to execute various operations. These include accepting and processing orders, creating invoices, deciding the right warehouses, keeping them informed, updating order details across its sales channels, and allowing customers to track their orders. Businesses can use an OMS to automate time-consuming, repetitive tasks and ensure end-to-end visibility. When seeking out an online OMS, companies must be clear about what is essential and what can be ignored.

Key points to remember while you pick an OMS

1. Seamless integration: An e-commerce Order Management System must include an open API that empowers e-commerce businesses to seamlessly integrate their operations across global marketplaces, carts, logistics providers, and more.

2. Managing returns: In e-commerce, online customers often return their orders if the product is not up to the mark or the waiting period is too long. An OMS must be able to keep track of all return orders and make updates accordingly.

3. Scalability: While picking an e-commerce Order Management System, businesses need to make sure that it is flexible and robust enough and can be scaled up in the future as per the increase in requirement as the business grows.

4. Real-time inventory tracking: An Online Order Management System equips businesses to reduce unnecessary expenses. It should also allow them to pursue potential sales opportunities proactively by enabling them to track inventory in real-time.

5. Multi-Node fulfillment: Also called Multichannel Order Management System, the OMS must empower customers in logistics management to choose the fastest delivery options. It will enable online businesses to maintain warehouse facilities at strategic locations to ensure the quickest delivery. Using OMS, e-commerce businesses can allocate orders to the closest warehouse and communicate the same with the end customer to streamline order fulfillment. A distributed Online Order Management System allows businesses to efficiently manage orders across multiple channels and systems.

6. Evaluate and trial: Businesses must compare multiple software solutions—their features, cost, after-sales technical support, etc.—before choosing an e-commerce Order Management Software. After evaluation, they must finalize the most suitable one and request a free trial from a set of finalized vendors. Based on the trial, evaluation result, and suitability to replace legacy systems, businesses should finalize the most appropriate OMS.

How can an OMS streamline order operations for your business?

1. Training: Businesses need to keep in mind that to implement a new OMS, it is important to train employees beforehand. They must ensure that the online Order Management System is user-friendly and can be quickly implemented.

2. Centralization: Businesses can integrate and condense their entire information under one roof, saving time and resources and ensuring multichannel compatibility with a multichannel Order Management System.

Read how Businesses are growing with Unicommerce – How Honasa Consumer, the parent company of Mamaearth, attained a 99.99%+ Order Fulfillment rate for its D2C operations?

3. Speed: A multichannel Order Management System are designed to enable e-commerce businesses to speed up productivity. This, in turn, ensures quicker delivery and efficient product handling, leading to higher customer satisfaction.

4. Accuracy: E-commerce Order Management Software enables online businesses to improve accuracy. The advancements in technology ensure the reduction of errors, especially in repetitive processes, allowing them to concentrate on introducing innovative products and processes.

Watch how Order Management System (OMS) helps in timely order fulfillment –

Final words

An online Order Management System is a must for any e-commerce business. It ensures a quick, personalized, and error-free order fulfillment, resulting in a satisfied end customer. A customized Multichannel Order Management System enables online businesses to save precious time on repetitive tasks, thereby allowing them to concentrate on other important activities such as marketing strategies, product innovation, which will eventually improve their productivity and profitability. Online businesses serve customers transcending geographical boundaries, languages, taxes, currencies, etc. Implementing an e-commerce Order Management System that covers all these factors can empower businesses to reduce complexity in operation, thereby resulting in a better customer experience.

Schedule a FREE demo with Unicommerce’s Order Management consultants.

Top Inventory Management Challenges and How to Tackle them Effectively

Team Unicommerce — Wed, 04 Oct 2023 02:01:28 +0000

Did you know that 72% of retailers are planning to revamp their supply chain, and this shift is set to reshape the retail landscape? But what’s driving this ambitious feat? The answer is the real-time visibility of inventory driven by automation and cutting-edge technologies.

Efficient inventory management is the essence of a successful e-commerce business. It is vital to have your back-end e-commerce processes in place for a good front-end experience. Rising competition in the e-commerce industry has also led businesses to adopt and embrace advanced technologies to sustain and thrive in the market.

But before retailers can think of implementing these advancements, they must first address critical inventory management challenges. So here are the common challenges with proven solutions for efficient inventory control.

Top Challenges & Solutions of Inventory Management –

While there are many problems faced in inventory management, here are the top challenges and solutions to overcome them.

1. Lack of Real-time Inventory Visibility

This is one of the biggest challenges in inventory management. As a business, you need to know the real-time status of stocks in your inventory. No matter where the goods are, you must keep a keen track of them. Poor inventory monitoring leads to delays in shipping and delivery of stocks, unnecessary shipping costs, and a lack of inventory balance.

How can you solve it?

Real-time Inventory Management System: This tells you exactly where your goods are. Additionally, it will also give your closer insights into the availability of stocks at that moment. Check out how The House of Rare achieved 360-degree visibility of inventory with a robust inventory management system.

2. Overstocking and Understocking

Overstocking happens when a business holds excessive inventory, tying up valuable capital and storage space. At the same time, understocking occurs when inventory levels are insufficient to meet customer demand. Research shows that reducing stock-outs and overstocks can lower inventory costs by 10%.

How can you solve it?

Effective Demand Forecasting: The key to tackling overstocking and understocking is leveraging sophisticated analytics and reports dashboards that can help you gain a better understanding of your data and keep track of upcoming events while checking the needed inventory levels for the future.

3. Redundant Manual Procedures

Tracking your inventory with basic manual procedures can lead to errors in managing goods. Also, manual picking, packing, and shipping processes can slow down order fulfillment which can lead to delayed delivery and hamper customer satisfaction.

How can you solve it? I

Invest in Cutting-edge Technology Solutions: To address this challenge, businesses should invest in modern technology solutions such as inventory management, warehouse management, and multichannel order management. Automating the procedures will make it easier to track and report on the availability of the goods.

4. Recognizing and Tracking Obsolete Products

It is common for some products to become obsolete after their demand significantly drops. Unfortunately, these obsolete goods are often left abandoned in warehouses and forgotten when their need arises. At such times, inventory managers may end up ordering new products that leave the old stock unused, resulting in a loss.

How can you solve it?

Stock Control Systems: This system is useful in hunting the dead inventory and using them when required. Expiry management and stock rotation methods like ‘First In First Out’ (FIFO) or ‘First Expiry First Out’ (FEFO) ensure that older inventory is used before newer stock. This helps prevent stockpile accumulation and ensures that products are consumed in the order they were received.

Discover how the Urban Company was able to minimize the dead stock and achieve 8X sales order growth with comprehensive reports and a dashboard.

5. Understanding Demand and Volatility

Understanding demand and volatility is essential for e-commerce businesses in today’s dynamic markets. Demand for goods can be uncertain and depends on various factors like season, geographic location, and market trends. A pertinent example would be the COVID-19 pandemic due to consumer behavior toward products being volatile. Additionally, market trends also vary. This can lead to a shortage of goods when the demand rises or excess stock when the demand is low.

How can you solve it?

Comprehensive Reports and Dashboard: Using advanced inventory management software equipped with comprehensive reports and a user-friendly dashboard can analyze real-time data. This will enable businesses to predict demand and enhance their forecasting accuracy precisely. Having access to up-to-date and accurate information empowers businesses to make informed decisions and promptly adjust their operations to meet changing demand patterns.

6. Lack of Integration with Sales Channels

In today’s omnichannel retail environment, businesses often sell their products through various sales channels, such as online stores, physical stores, marketplaces, and social media platforms. Each of these channels may have its own inventory tracking system, which can lead to discrepancies and inconsistent updates across different channels. For example, if a product sells out on one platform, but the inventory is not updated on another, there’s a risk of overselling, which can result in canceled orders and unhappy customers.

How can you solve it?

Centralized Inventory Management System: Implement an integrated inventory management system that synchronizes inventory levels across all sales channels in real time. This ensures that inventory data is accurate and up-to-date, reducing the risk of overselling and helping to meet customer demand more efficiently.

7. Handling Perishable and Fragile Stock

Certain products, like perishable goods (e.g., fresh produce, dairy products) and fragile items (e.g., glassware, electronics), require special handling and care during storage and transit. These items have limited shelf lives and are susceptible to damage, making it crucial to track their conditions and use them before they expire or become damaged.

How can you solve it?

Efficient Expiry Management System: To effectively manage perishable and fragile stock, businesses should implement an efficient expiry management system. This involves clear product labeling and sorting, adhering to the first-in-first-out approach, real-time monitoring of storage conditions, automated alerts, and ensuring stock visibility through the inventory management system.

Check out how The Man Company seamlessly achieved minimal expiry and spoilage by implementing expiry management methods, including FIFO and FEFO.

Let’s Make Inventory Management Easier!

Efficient inventory management system is essential for the success of any retail business, especially in today’s dynamic business landscape. Also, with rising competition in the e-commerce industry, it is essential to have all your e-commerce back-end automation aspects in place. Rather than hunting for each service individually, it is wise to implement a full-stack solution that fulfills all your e-commerce automation needs in one place. With the right strategies and technology in place, businesses can navigate inventory challenges and stay ahead in an ever-evolving retail world.

See how to configure, manage and execute complex order routing processes effectively and efficiently with an e-commerce inventory management system –

Unicommerce offers a wide range of e-commerce solutions like Warehouse Management System, Inventory Management System, Multichannel Order Management Solutions, Full-stack D2C E-commerce Platform, and Omnichannel Retail Solutions. Unicommerce offers simplified solutions for e-commerce inventory management and ensures the top-notch performance of your business by empowering you to overcome inventory management challenges.

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Maximizing Efficiency in Manual Inventory Management in Philippines: Challenges and Their Solutions

Team Unicommerce — Fri, 17 Mar 2023 11:22:44 +0000

Inventory is the lifeblood of every successful business, from fashion to electronics, from retail to wholesale, and beyond. Managing the entire inventory block may not sound like a major hassle initially, but if you have a widespread business with multiple warehouses or are willing to scale your business in the long run, inventory management can be the toughest battle to lead, especially when it’s handled manually.

The e-commerce industry in the Philippines is no exception, as its rapid growth demands efficient and effective inventory management solutions. While business owners in the Philippines are well aware of the benefits of automation, budget constraints can sometimes hold them back from making the switch. However, failing to address these inventory management challenges can limit a company’s ability to stay competitive in a rapidly growing industry

So, let’s unveil some of the most common inventory management challenges faced by companies in the e-commerce industry in the Philippines and solutions to overcome them.

Top Inventory Management Challenges in the Philippines

Inconsistent Tracking
Inefficient Warehouse Management
Data Inaccuracy
Limited Inventory Process Visibility
Manual Documentation
Overstocking and Understocking Issues
Insufficient Order Management
Expanding Product Portfolios
Inventory Loss

Though every company can have its set of holdbacks, here are a few challenges that might be the common ones among all:

Challenge #1: Inconsistent Tracking

When you have tons of inventory to manage, it’s quite natural that the tracking can become tough, and there’s a huge room for errors in tracking products in the warehouse. Talking about the holdbacks, there are high chances of late and wrong product deliveries due to inconsistent inventory tracking, which can be responsible for depleting the brand value and gaining low ratings on social media as well, ultimately resulting in tarnished brand value.

Challenge #2: Inefficient Warehouse Management

As said earlier, inventory management isn’t ever a piece of cake; thus, managing warehouses to accommodate new stocks can be a cumbersome process. In case you’re operating on a manual process, there can be a few steps, including scratching a plan, allocating spaces, and then heading to management. The process will take generous time and resources, which can increase your budget. Without an automated inventory system, it’s nearly impossible to have efficient warehouse management.

Challenge #3: Data Inaccuracy

Managing large amounts of data associated with a vast inventory can be extremely challenging without automation. Manual data management becomes even more complex and prone to errors. Having a system to back up your process and incorporating the right tracking to have the data in sync can be done only through an e-commerce solution. This can later avoid data inaccuracy and keeps stuff ready to use for further purposes.

Challenge #4: Limited Inventory Process Visibility

Customers have come to expect transparency and accuracy in their e-commerce experiences, including real-time tracking information. Inadequate inventory tracking can result in delayed deliveries, which can lead to customer frustration and a switch to competitor products. Inaccurate inventory management can severely impact customer satisfaction and loyalty.

Challenge #5: Manual Documentation

Manual inventory management can be a difficult task, especially when it comes to tracking inventory, managing reports, processing purchase orders, and handling invoices. Inaccurate documentation can result in incorrect order allocation, causing missed or delayed deliveries that can have a significant impact on operations and customer satisfaction.

Challenge #6: Overstocking and Understocking Issues

Overstocking and understocking are two significant issues that businesses face when managing their inventory. In a general supply chain process, new stocks are ordered once the old/existing ones go bleak or maybe about to finish. In the case of inefficient inventory management, there are huge changes in overstocking or understocking materials, which can cut your profit margins, while manual management can lead to inaccurate records, missing items, and higher budget allocation for re-ordering.

Challenge #7: Insufficient Order Management

With tons of orders pouring in, you must have a strong order management system to help you fight the insufficiency of products. For instance, if the customer has ordered five pieces of a particular order and post-purchase you find lesser pieces available, ordering more will take time, and thus your order delivery duration will extend, leading to insufficient order management. Additionally, incorrect SKU mapping can also cause problems with order management. An incorrect SKU mapped to a product can result in inaccurate inventory tracking and fulfillment errors, leading to delays and, ultimately, unsatisfied customers.

Challenge #8: Expanding Product Portfolios

Expanding a product line or setting up a new warehouse requires strong and effective management of inventory stocks. Having it done manually can surely lead to mismanagement; why so? This is because the inventory managers are required to have order tracking, maintain shipping details, and have an eye on the currently available stocks to allocate the same for rising customer demands. Having an automated system can be the right way to expand product portfolios.

Challenge #9: Inventory Loss

Wastage in inventory is often overlooked until it shows up as losses on the balance sheet. Poor inventory management can result in damage or defects during the product life cycle. Inefficient tracking can lead to missing inventory, causing further losses if not noticed. These inefficiencies can significantly impact the bottom line.

Read how brands like Ellana and Edamama solved their inventory management challenges in the Philippines.

As a business owner, you require robust software to manage complex logistics and seamlessly integrate with your existing business processes. However, choosing the right inventory management solution from the hundreds available can be challenging, particularly with the need to master a range of features that require training and ongoing support.

But what should be kept in mind while finding the right solutions to overcome the above-listed challenges? Here’s what you need to know!

Choosing the Right Inventory Management Solutions in the Philippines

Integrations
Multi-location Sync
Extensive Dashboard for Reporting
Product Barcoding
Product Bundling

A comprehensive inventory management system is crucial for any business. The right solution can provide valuable insights into your stock, enabling effective management and identification of any potential obstacles to success. This can help ensure timely deliveries and maintain customer satisfaction.

When choosing an inventory management solution, it’s important to consider the following essential features:

Integrations

Having an inventory management system in place is not enough for a successful business. It’s important to ensure that all necessary integrations are in place, including an ERP solution, a comprehensive point-of-sale system, accounting software, and strong logistics.

This should also include integration with leading marketplaces, websites, and carts such as Lazada, Shopee, Shopify, and Magento, and with logistics providers such as J&T and Ninjavan, and with ERP systems like SAP, Infor, and Microsoft.

Multi-location Sync

Having your presence on a single channel isn’t enough to grab the eyeballs; make sure you have omnichannel visibility with a marketplace sync. This includes a strong presence on both digital and offline channels.

An inventory management system can facilitate efficient omnichannel operations, such as centralizing inventory across online and offline channels, optimizing inventory allocation for a higher return on investment, and improving inventory turnover while reducing working capital. The system can also allow for effective order routing based on inventory availability.

Extensive Dashboard for Reporting

An all-encompassing report dashboard is crucial for monitoring and analyzing business performance, including metrics such as growth, profitability, loss, holdbacks, customer feedback, data usage, and more. These dashboards also provide real-time data synchronization and inventory updates on marketplaces.

Not only do these updates help you avoid loss of sales and delays in delivery, but they also lead to improved customer satisfaction. Ensure that you have access to a comprehensive dashboard that presents all of this information in a single, easily-readable view.

Product Barcoding

Barcoding software is an essential tool for reducing data entry errors, automating internal processes, and ensuring accuracy and efficiency in inventory management. The use of barcode software often integrates with digital documentation and reporting features, allowing for a more streamlined and efficient workflow.

Integrating a mobile barcoding device can significantly enhance inventory accuracy and speed up back-end processes, reducing manual labor and shifting towards a more paperless documentation process.

Explore our platforms:

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The post Maximizing Efficiency in Manual Inventory Management in Philippines: Challenges and Their Solutions appeared first on unicommerce.com.

Why is Inventory Management Important for E-commerce Business [2024 Updated]

Team Unicommerce — Sun, 08 Jan 2023 10:50:26 +0000

Global retail e-commerce surpassed an impressive milestone of 5.7 trillion U.S. dollars in sales in 2022. This upward trend shows no signs of slowing down, and it’s quite clear that e-commerce is a driving force in today’s business landscape. As such, it becomes more important for e-commerce businesses to streamline and optimize their operations. One area that demands particular attention is e-commerce inventory management.

Inventory management is all about getting the right things to the right place at the right time and in the proper condition. However, it is much easier said than done. There are several stages before a product reaches its final destination, such as warehousing and shipment, which can be complex and require careful planning. That’s why having an effective inventory management strategy is crucial for e-commerce businesses.

This blog will go over the importance of inventory management software for your e-commerce operations and the benefits that an efficient inventory management system brings to your organization!

What is the Importance of E-commerce Inventory Management?

Inventory management is crucial for e-commerce businesses as it helps optimize stock levels, minimize inventory costs, prevent stockouts, and ensure timely order fulfillment. Effective inventory management leads to improved customer satisfaction, reduced wastage, increased profitability, and better working capital for businesses.

For example, let’s consider an online retail store that sells various products. Without proper inventory management, the store might face several challenges, such as stockouts, where fast-selling items run out of stock, and customers are unable to purchase them; this will result in lost sales and dissatisfied customers.

On the other hand, if you have excessive inventory levels, it can tie up valuable capital, increase holding costs, and lead to potential losses due to expired or obsolete products. Therefore, implementing an effective inventory management system can help the retail store avoid these challenges and optimize storage space.

The Crucial Role of Inventory Management Software for E-commerce Businesses

Effective inventory management demonstrates the significance of proper real-time stock management, which can be accomplished by using dedicated e-commerce inventory management software. In comparison to manual data encoding, automation is always preferable.

Even if your company can survive on manual data encoding, other formulas based on prices are challenging to implement. This software will streamline your customer service and make transactions seamless.

On average, inventory is accurate just 63% of the time for retail. Thus, good inventory management software should:

constantly update your e-commerce business’s data in real-time,
reduce human error risk,
be more accurate and quicker in tracking orders,
predict your profits and losses and
ensure warehouse control and customer, supplier, and distributor management.

Having centralized e-commerce inventory management software is critical for warehouses, retailers, and customers alike. This tool ensures that all packages and shipments are tracked and monitored in real-time. To streamline your services and maintain a continual connection with your clients, you should use the most up-to-date supply chain management technologies on the market.

How Can a Robust Inventory Management Software Empower Your E-commerce Business?

Here’s how an effective e-commerce inventory management system can take your business operations to new heights:

1. Streamline Inventory Control and Purchasing: You may be able to specify minimum inventory levels for each item, depending on the inventory software you employ. It will enable you to quickly examine the list of products below that level and place and send fresh purchase orders.

2. Enhance Supplier Management and Ordering: If your reports are generated by advanced inventory management software, you can also check if you have products on order with a supplier and if your supplier has inconsistent deliveries of finished goods. This knowledge is essential if you want to keep procurement and reordering under control.

3. Accurate Information: Sharing accurate information is essential for running a profitable business. Thus, you should use a software system that interfaces with everything from integrated accounting to barcode scanners. As a result, your system will reflect the actual situation on the ground.

4. Boost Employee Efficiency: If your employees know that the inventory management system is constantly updated, they will have more confidence in the software and use it for all tasks. You will have better data due to the improved reporting and efficiency across the organization.

5. Saves Time and Resources: Since many time-consuming inventory management processes are now automated, it saves employees time and allows them to focus on other activities. Furthermore, human error gets removed from the equation to a much greater extent. As a result, these systems reach a better level of precision.

What are the Benefits of Inventory Management System?

Listed below are the benefits of using an effective inventory management system:

1. Greater Efficiency and Productivity – Effective inventory control leads to better storage management, which means that products can be easily located, collected, and packed, as well as supplied to buyers as quickly and efficiently as possible.

2. Customer Satisfaction – When you have the right amount of inventory available, you will be able to fulfill orders faster. This will build trust in customers and may assist you in turning a one-off customer into a repeat customer. The more accurate your inventory management is, the more aligned you will be with customers’ expectations about the availability of the product.

3. Increased Visibility – Efficient inventory management ensures that you make better and quicker decisions. Tracking inventory becomes transparent, and you will know the number of products that are within the warehouses, how many orders came, what was shipped, what was returned, and where are possible stock-outs.

4. Increased Revenue and Profit Margin – Poor stock management can cause revenue losses. You can avoid errors such as stock-outs and overstocks by properly forecasting the correct amount of your inventory. You can lower your cost by reducing supplier lead time. It can be made possible by improving inventory management in the supply chain.

Let’s Make E-commerce Inventory Management Easier!

An inventory management system enhances efficiency in all areas of the e-commerce business. If you work with a warehouse that uses cutting-edge, real-time inventory management technologies, you will be able to keep your consumers satisfied. In short, by prioritizing inventory management and leveraging robust inventory management software, you can unlock operational success, meet customer expectations, and stay ahead in the competitive e-commerce landscape of 2023!

Schedule a FREE demo with Unicommerce Inventory Management consultants.

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