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What is Shopping Cart Abandonment? Top 10 Strategies for Reducing Cart Abandonment Rates in 2022

What is Shopping Cart Abandonment? Top 10 Strategies for Reducing Cart Abandonment Rates in 2022

The most disappointing thing that a seller can experience is when a buyer shows genuine interest but doesn’t end up purchasing anything. It reflects a loss of all the resources and time that is dedicated by the business. Shopping cart and checkout abandonment are all too prevalent among online buyers in the modern eCommerce space. Data shows that the current average shopping cart abandonment rate is more than 70% in India, which is severely eroding retail revenues. As a result, many retailers have made reducing shopping cart abandonment a top priority and are investing increasing amounts of money in doing so. Fortunately, there are a number of approaches and personalization techniques that aid in abandoned cart recovery and boost returns. Let us look at it in detail. What is Shopping Cart Abandonment? Shopping cart abandonment happens when a potential consumer begins the online check-out procedure for an order but leaves before making a purchase. A commodity that is added to the shopping cart but never purchased is regarded as having been "abandoned" by the customer. In simple terms, it is the same as a customer going to a store to buy products, choosing which ones they want and are about to have them scanned, but suddenly decided against it. In a real-world scenario, a shop attendant can inquire if there are any issues and recommend them better and cheaper products. [contactus_uth] How to Calculate Shopping Cart Abandonment? To calculate cart abandonment rate, you need to divide the total number of completed transactions by the total number of created carts. Subtract from one and then multiply by 100.  The formula is as follows: The total number of transactions initiated. This will show you your rate of shopping cart abandonment over a given time frame. For instance, you can take into account all of the transactions from the previous month or quarter and split them by the number of completed transactions or the goods that customers added to their carts but did not end up purchasing. For example, if you have a total of 500 carts created and 120 completed purchases, the cart abandonment rate is 76%. The 3 Stages of Shopping Cart Abandonment Pre-Abandonment It might be challenging to determine visitor intent during the pre-check-out stage because they might simply be browsing your website without making a purchase decision. In some cases, factors contributing to their final abandonment may be related to the user experience. No one will purchase from your website if it appears to be shady or fraudulent. A reliable website can influence users' behaviour significantly by lowering hesitations and fears. The usability of a website that is simple, transparent and convenient can frequently convert a potential buyer into a loyal customer. Both internal and external aspects of the eCommerce experience, including security seals, shipping procedures, customer testimonials and more, may have an impact on the trustworthiness of your business, as determined by customers. Buyers need to feel secure when making purchases from a website. Broken links, poor image quality, inaccessible sites and site timeouts can make visitors lose faith in your company and their ability to make wise purchases. Three efficient strategies to encourage trust in your business and develop confidence in your site include displaying well-known verification seals and logos, making customer product reviews easily accessible and providing complete disclosure on security standards. According to a study, unanticipated expenses, like expensive delivery fees or additional prices, are the main reasons for cart abandonment. Preventing customer frustrations and significantly lowering pre-abandonment dropouts can be accomplished by streamlining the checkout process and offering upfront prices, clear payment options and transparent delivery charges. Display of Abandonment Intent The warning for impending cart abandonment is set off by a number of the buyer's telling behaviours and intent signals. There are efficient personalization and abandoned cart recovery options that let you recuperate in real-time and convert those potential abandonments into sales. Customers could feel confused when websites have an excessive amount of content. When buyers lose interest and indicate that they are ready to go, eCommerce companies can deliver personalized and incredibly compelling messages to them. Powerful ways to keep visitors engaged before they go back to their referral source include triggering an incentive-laden overlay with limited-time offers, free shipping, money-back guarantees or an inducement to subscribe to a newsletter upon display of this behaviour. For instance, assume that your user has chosen to quit your website rather than completing the checkout after being confronted with unexpected shipping expenses. By automatically launching an exit-intent overlay or message with a tailored incentive for finishing the order when you notice your visitor's exit intent, you can successfully re-engage with them. Employing flashing tab notifications that change the title of the abandoned browser's tab to attract the user's attention and persuade them to purchase if they already have items in their cart is another strategy that is simple but effective in reducing shopping cart abandonment. Post-Abandonment To get your customers to return, resulting in abandoned cart recovery, there are a variety of retargeting tactics and technologies you may use. For instance, businesses can use targeted display advertising to retarget cart abandoners, reminding them that they still have products in their carts and providing them with special offers when they come back to finish their purchases. When a user visits a website, browsing cookies are used to retarget them with highly relevant advertisements for things they have already shown interest in. eCommerce businesses can create customized abandonment email campaigns to remind customers to finish their shopping or to provide discounts when out-of-stock items have been restocked. While requesting input from customers might assist in identifying the issues that contributed to shopping cart abandonment, providing personalized marketing messages is an incredibly successful method to encourage returns. Sending out surveys to your visitors and clients regularly will help you remain on top of their expectations and will provide you with information on the most pertinent and efficient marketing methods to use to decrease future abandonments. Abandoned cart recovery strategies can be quite successful in re-engaging customers at all stages of the cart abandonment process. Customers' demands are rising, and eCommerce merchants in charge of omnichannel shopping should adopt creative new approaches to address their needs on a personal level, throughout the customer journey. Top 10 Causes of Shopping Cart Abandonment  Unintuitive Checkout Process The buyers should reach the finish line as soon and as easily as possible. A lengthy checkout process with numerous steps and forms might cause friction and slow down your customers. As a result, the buyer not only detracts from the present checkout experience but may never make another purchase on your website. Unforeseen Shipping Expenses Unanticipated delivery expenses typically hit a customer after they've entered their shipping information and discover that it is more costly than they anticipated. Once they notice those fees, customers might reconsider their purchase and, if their expectations aren't satisfied, they might even abandon their cart. Forced Account Setup  Prior to making a purchase, users should not be required to register an account. This is especially true for new customers who might not be prepared to open an account. The checkout experience is complicated and order completion is slowed down when customers need to generate a username and password in order to finish a transaction. Payment Safety Concerns Understandably, most buyers are extremely wary of making purchases online. They won't complete their purchase if they don't feel secure about giving their personal information or if they worry that their payment information won't be handled securely. Shopping Cart Restrictions Customers don't want to add things to their cart only to discover later that they are unable to purchase them due to limitations on the amount that one person can buy. Being forthright about quantity restrictions helps reduce consumer resentment by establishing expectations that a product may have restricted availability. Better Deals Elsewhere Customers now have access to a wide range of options when purchasing online and can compare those options quickly, thanks to the wonders of the internet and the growth of mobile commerce. Deal-seeking customers frequently place items in their carts with the intention of buying them later from a different store that is offering a better deal. Lack of Variety in Payment Options Online buyers prefer to finish their transactions with the payment options that are most practical for them. Some customers may be content with the default selection but others may decide to quit your site entirely if you don't accept their chosen payment method, whether it's card payment, UPI payment or the purchase now, pay later option. Rigid Returns Policy  After adding items to their cart, customers frequently receive information about warranties and return policies. A vague or insufficient return policy may make customers think twice about their purchase. Customers want to know that they can simply return a product to a shop and get a refund if anything goes wrong with it. Long Delivery Timelines  Customers expect to receive their order as soon as possible. The advantage of shopping online over visiting a store is lessened if consumers must wait too long. Instead of waiting for your store to ship, a consumer who needs their purchase by a certain date might decide to search elsewhere. Glitches in Website Performance  A glitchy or unsteady eCommerce site may make customers lose faith in your checkout process or simply become irritated and leave. In the event of an unexpected crash or lengthy page load, customers are less likely to provide their payment information for fear of being charged twice for the purchase or having their payment fail. 10 Best Strategies to Reduce Shopping Cart Abandonment in eCommerce Provide Ultra-Fast Delivery The online shopping space is expanding and enhancing the delivery process to fulfill orders as soon as possible has become very important. Same-day and next-day delivery has become the new standard USP provided by sellers. In many cases, some sellers, with the help of a third-party fulfillment company, can deliver an item within a few hours. This has a positive impact on customers' buying experience and reduces shopping cart abandonment rates. Offer a Mobile-Friendly Experience A streamlined, appealing mobile interface of a website is essential to boosting online sales because younger consumers are increasingly using their mobile phones for shopping. When combined with typical distractions such as calls, messages, social media, etc. an unorganized and unfriendly user experience will increase the rate of cart abandonment. Mobile-friendly websites are fantastic due to their responsiveness and optimization. However, developing a mobile app for both Android and iOS would be the greatest method to appeal to millennials, as no website can match a native app in terms of usability and navigation. Some of the top merchants in the world like Amazon, Flipkart, Mesho and others, have repeatedly demonstrated this. Have a Simple Check-Out Process Customers tend to favour eCommerce websites with simpler checkout processes because there are now more options available to them than ever before. They will immediately leave to locate a website with a simpler interface if they see a lot of pop-up windows or they need to confirm an action more than once. If customers find a website with a good user interface, that brand will easily win them over. Customers dislike filling out registration forms, verifying their phone numbers and email addresses, and entering their billing and payment information. Allowing customers to register using their social network accounts would be a more appealing method to accomplish this. Simple measures like these can greatly increase abandoned cart recovery. The shopping cart must have a clean appearance and show the products clearly. The price breakdown in terms of cost, shipping and taxes, as well as information on the return/exchange policy and delivery, must all be prominently shown on the page. By enabling one-click ordering, other eCommerce companies can learn from Amazon. Another example is Mesho, which has recently introduced a new feature that enables prospective buyers to click on a picture of an outfit they like and make a straight purchase through the app rather than going to the retailer's website. Reduce Any Uncertainties The discrepancy between the actual goods and their online description or product image is among the most common complaints about internet purchasing. Realistic product imagery, snappy, in-depth product descriptions and product films that portray the item more accurately and highlight its features can all help to lessen this. When describing something, it is important to be as truthful and accurate as possible. In a time when consumers seek credibility above all else, images that have been heavily modified are considered unacceptable. Conversion rates can be greatly increased by using images of the use case of the product. Provide Transparent Pricing Most websites display a starting price in their ads or even on the product description page, then raise it when you add items to your cart. This makes customers wary of unexpected price increases. Making sure that all costs, including shipping and taxes, are expressly listed on the product description page, is the simplest technique to reduce shopping cart abandonment. This prevents customers from leaving the checkout page after noticing an increase in the overall price. One thing that websites can do is include tax in the cost of the goods and, if applicable, state the threshold for free shipping and delivery on the home page or product page. Undercut Your Competitors  When a buyer lands on your website and starts shopping, they might abandon their cart because of price comparison with your competitors. You lose the deal and the customer for further sales, so you need to check competitor costs and price your product in a similarly vicinity or even below it. Additionally, a website can reassure users of this by providing details regarding discounts, customer feedback and reviews for each product page which may add value to the product if the pricing is high in comparison to competitors. Implement a Fair Returns Policy eCommerce's ability to offer a doorstep return/exchange facility is one of its biggest advantages. To reassure customers, an effective policy backing this needs to be prominently shown on the checkout page. Free returns enable customers to make purchases without hesitation or concern. Offer Customization Options Many times, buyers choose a seller because of the colour and size of the product, fast delivery, favourable payment options, etc. They seek the easiest possible transactions and the best customer experience. So you should offer customization options to increase the rate of cart abandonment recovery and finally earn their money. Have Multiple Payment Methods Retailers must provide numerous payment gateways, including region-specific payment alternatives, as well as the choice to remember customers’ payment information and preferences. Additionally, new payment providers could provide promotional offers and cashback plans to entice customers to finish their transactions. Send Emails to Customers Who Showed Interest Staying in touch with customers who have shown interest in your brand and your products can increase their chances of returning to your company and making a purchase. It pays to have a form where users can record their contact details before check-out so if you notice that a customer has abandoned their cart, a personalised email can be sent inquiring about the reason for their sudden abandonment and can suggest similar products or offer a solution. Provide Assurances on Listings Assurances such as a money-back guarantee in case a product is returned or shipping badges that specify the exact delivery speed will reassure customers that they are dealing with a professional company. This will reduce the chances of them suddenly abandoning their cart because they are apprehensive about the company. Additionally, it will give them more clarity on when they can expect to receive the order and anything else that you wish to convey. Conclusion: How Can WareIQ Help to Reduce Shopping Cart Abandonment? To reduce shopping cart abandonment, you should primarily start by measuring and analyzing shopping cart abandonment KPIs in order to figure out where you are going wrong and increase sales and the rate of repeat customers with the help of various technology and experts. Differentiating between cart abandonment and checkout abandonment has proven to be successful for many retailers. WareIQ, one of the country's most trusted third-party fulfillment companies, provides a whole range of eCommerce fulfillment services from storage to delivery and everything in between. We assist retailers with reducing their shopping cart abandonment rates by providing super fast delivery services like same-day and next-day delivery through our WareIQ Rush product. This assures customers that they will not have to wait for multiple days to receive their products and can encourage them to make the purchase after they have added products to the shopping cart. Additionally, you can display custom shipping badges on your product pages to convey faster delivery timelines, which provides assurance to them they will receive their products within 1-2 days of placing the online order. Shopping Cart Abandonment: FAQs What percentage of online buyers abandon their cart?In India, more than 70% of shoppers abandonment their cart. Why do online buyers abandon their cart?Buyers remove items from their shopping cart due to multiple reasons such as excessive checkout rates, increased shipping costs, lack of discounts, slow website performance and much more. How do you calculate shopping cart abandonment?To calculate cart abandonment, divide the total number of transactions by the total number of carts created. Subtract it from one and then multiply by 100. What is the shopping cart abandonment rate in online shopping?The shopping cart abandonment rate is a crucial metric for online shopping to keep track of buyers removing items from their shopping cart and don’t end up purchasing anything.

July 01, 2022

Multichannel Inventory Management: A Detailed Guide to Successful Multi-Channel Selling for eCommerce & D2C Sellers in 2022

Multichannel Inventory Management: A Detailed Guide to Successful Multi-Channel Selling for eCommerce & D2C Sellers in 2022

Mismanagement of inventory costs businesses $1.75 trillion annually, and the probability of inventory errors only rises as organizations grow and sell through many channels. Brands must now use multiple retail and distribution channels to succeed in eCommerce fulfilment services. As a result, businesses must not only sell through various media but also navigate the challenges posed by the multichannel sales fulfilment model, such as tracking, managing, and delivering inventories. Inventory management may become extremely difficult rapidly, and your company may fail under strain if you don't have the framework and resources to acquire inventory and complete orders. In a multichannel inventory management system, purchases and manufacturing orders further increase the difficulty of managing inventory and storage space. Because of this, inventory management software (IMS) has grown to be a crucial component of multichannel operations. This kind of software provides various functions, including inventory, shipping, warehousing, accounting, and vendor administration, all of which work together to stop missed sales and dissatisfied consumers. Today, firms selling on several channels and managing inventory across multiple warehouses need to use multichannel inventory management. Let's examine what it is and the problems it resolves. What Is Multichannel Inventory Management? Monitoring inventory from various sales channels and storage facilities is known as multichannel inventory management. This comprises stock for retail, wholesale, online markets, and e-commerce. Your business can effortlessly manage stock levels, reorders, and inventory forecasts using multichannel inventory management, allowing you to precisely predict inventory turnover each quarter. Instead of wasting time and resources managing your inventory details, multichannel inventory management solutions let you concentrate on expanding your company. Practical Example Of Multichannel Inventory Management System Let's say your business deals in fashion and apparel. One of your products is men's jeanswear that you sell online and offline. All client orders are placed through the online platform, and you've listed denim jeans for sale in your shop. This makes it simple to keep track of your outgoing inventory and ensure you only sell what you have on hand. But when business picks up, you start searching for ways to grow and connect with other prospective clients who use different platforms for shopping. Because you created shops on Flipkart and Amazon, keeping track of stock levels is considerably more challenging because orders are now being placed on three distinct platforms. For instance, if you have 100 blue denim jeans ready to sell, you might set your inventory to 100 on all your sales channels. You now face the chance of overselling, in any case. For instance, you might end up selling 20 denim jeans that you haven't even created yet. Suppose you sell 70 pieces of denim of the inventory you have on hand on Myntra and 50 on Amazon the same day before. In that case, you can update the inventory counts on each site. Therefore, maintaining an accurate product count today is practically impossible without a centralized, automated system for inventory management. You could certainly give it a go. However, you now face the risk of upsetting clients when they place an order for an item only to have it delayed or even cancelled because there is no inventory on hand. Additionally, you'll need to acquire warehouse space and potentially even a business to manage your eCommerce fulfilment if your production increases and you need a place to store items and complete orders more quickly. Sending inventory to numerous sites is required, and you are no longer the sole person in charge of adequately wrapping and shipping each of your goods. Incorrect stock may harm sales, fulfilment processes, and your reputation, so providers won't want to cooperate with you. Your entire organization may fail if you can't keep it in check. Currently, 55% of e-commerce companies handle inventory manually, frequently using spreadsheets or pen and paper. But there are a few drawbacks to this approach. For starters, manually controlling inventories takes time. In addition, you'll waste time and resources tracking every transaction on every eCommerce platform rather than concentrating on growing your business. Thus there is an opportunity cost involved. It is also simple to make mistakes due to the lack of visibility across sales channels and warehouses, which results in overstocking and overselling. Additionally, it is more challenging to manage and obtain data to make informed judgments, making it more difficult to expand your firm. Multichannel inventory management is the answer. Let's examine how it will help your business and why it works. 8 Common Challenges In Multichannel Inventory Management Making a significant influence on online markets like Amazon and Walmart requires using the appropriate technologies. However, there are still some potential problems faced during multichannel selling. This is because various sales channels expose organizations to multiple hazards, and depending on inadequate solutions will probably get you into trouble. The following are some of the most typical problems multichannel eCommerce businesses encounter: Multichannel Inventory Management Becomes Challenging Planning your inventory is crucial if you sell through numerous channels. It might be challenging to predict how much inventory you'll need for each channel and when you'll need it. Overstock, and you'll have too much stock for a month. You risk running out of merchandise if you understock when you need it most. The impact of overselling on client satisfaction can be significant. Directing your goods to the most effective warehouse reduces expenses and expedites delivery. A consumer at your physical store with an empty shopping cart and a credit card in hand are of little value to you if you have high inventory levels in a warehouse for your online business. Processes For Fulfilling Orders Gets Complicated When you were starting out and only selling on one channel, checking SKUs off on spreadsheets, printing individual shipping labels, and straightforward manual picking and packaging certainly sufficed. But now, since you're on several channels, everything is much more difficult. The number of orders that need to be completed increases, and so does the complexity of the order fulfilment workflows. Since you could apply various fulfilment strategies for multiple channels and move inventory between warehouses, the appropriate software may simplify the process by enabling you to process orders in a single location and in real-time, update order statuses automatically, and, most significantly, automate the multichannel order fulfilment procedures specific to your company. Excessive Stock Too much inventory is a resource drain that might prevent future investment since unsold inventory results in increased storage costs and insurance rates. This increased overhead will result in a cash flow restriction, which is never the intention. Inefficient Management Of Warehouse Space  Your finances and overall storage space are impacted when the incorrect items are stocked in many warehouses. It is tougher to restock things selling well with less space you have to fill. In addition, the insufficient room makes it much harder to satisfy customer needs, which leads to dissatisfied customers who could stop patronizing your establishment again. Additionally, you must pay holding charges for storing the unsold merchandise, which reduces your overall profitability. Overselling When a company sells through several channels, they frequently discover that there is a chance that they may accept payments for goods that are not yet in stock. As a result, overselling can make consumers dissatisfied. Cancelling an order may harm their experience, hurt your reputation, and raise the likelihood that they won't shop at your online business again. Erroneous Forecasting Insufficient data has a cascading impact. Additionally, because business is constantly changing in e-commerce, it is incredibly challenging to reverse course once inventory planning goes awry. It doesn't help that, according to a Zentail poll, 54% of sellers still don't use forecasting tools and instead try to compute shifting objectives manually. In addition, the same merchants frequently use a conventional forecasting methodology of 30, 60, or 90 days. As a result, they lack unified, real-time data to identify new purchasing patterns and instantly reorder (or reduce) product quantities. High Rate Of Order Defects  Order cancellations, wrong shipments, delivery exceptions, or late deliveries might result from an absence of inventory control. Your selling performance will suffer if they get out of hand. An ODR over 1% on Amazon is grounds for suspension. The cutoff is 2 per cent on eBay and Walmart. Beyond understocking and insufficient data, an inventory storage system that doesn't connect your various facilities might sabotage your productivity. Channel Performance Insights The most valuable player of any e-commerce organization is data. Unfortunately, having a selling presence across various platforms might leave you with a mountain of dispersed and disorganized data. That's before you factor in additional difficulties like dropshipping or Amazon FBA. Identifying your organization's areas where you should spend more time and energy might be challenging. You won't be able to see clearly how the demand is shifting or what's doing well. 6 Benefits Of Having Multichannel Inventory Management Not only does a system that updates inventory automatically across platforms for sales and warehouses keep you organized and spare you the hassle of making manual modifications. Multichannel inventory management immediately benefits your businesses bottom line in several different ways. Prohibits Overselling and Overstocking When your inventory is off, you can sell products you don't have in stock. This can cause delays in order fulfilment, irate customers, and even lost revenues if you have to issue a refund and the buyer goes shopping somewhere else. Deadstock or overstocking of some products can also occur from not having a solid grip on inventory or customer demand for particular products. With contemporary software solutions, multichannel inventory management streamlines this procedure. Each sale of items made anywhere will draw from the same inventory if you have a central database. Thus you can always be sure that your inventory is accurate. Improves Visibility The merchandise availability across all sales channels and warehouses can be quickly seen and evaluated by sellers using a multichannel inventory management system. The impact of sales on inventory is also visible to sellers in real-time. You can thus check inventory at any time to know quickly what goods are available, which ones you need to refill, and which products are selling where – and you can do it all in real-time. Provides Insights Without data, no e-commerce company can grow and prosper. As an e-commerce merchant, you must know what products are in demand, which isn't moving, and how your inventory varies with seasons, trends, and sales to optimize your inventory and order fulfilment. This enables you to anticipate demand and plan for special occasions. Suppose you're planning for Christmas Day, for instance. In that case, you may consider what products you'll need to resupply before the event and then use historical sales data to forecast which things will sell quickly and make the necessary preparations. Using data and insights to influence your decisions, you may also rapidly take advantage of fresh possibilities. For instance, you can find that a specific pair of denim jeans isn't selling well and decide to give a one-day flash sale to persuade people to buy. Or, you can discover that sales of a specific product vastly outpace those elsewhere and opt to keep it solely in a local warehouse. You may streamline your business and concentrate on the most lucrative platforms by eliminating the selling channels that aren't doing as well. Improves Customer Experience It would be best if you offered the same high standard of service regardless of whether a consumer decides to purchase your product—on your website, Myntra, or anyplace else. Whether you conduct business online or in person, you need a multichannel inventory management system that offers real-time visibility. Let's look at this on a much bigger scale for a company with several retail locations. When a buyer visits your online store to buy a pair of medium denim pants, they are out of stock. To find the item, the consumer might travel to other shop locations or check online to see whether the trousers are in stock. However, a multichannel inventory management solution makes it simple for customers to ask a staff member to verify the inventory at different shop locations. Finding whether local businesses have the item in stock so the consumer can pick it up the same day or have the trousers sent right to their house will take a second. When an inventory management system is in place, it eliminates the need to search across many retailers for a pair of trousers. Expedites Delivery Regardless of your location, a multichannel inventory management system enables your company to handle inventories worldwide. As a result, shipping times will be quicker, and merchandise may be located closer to clients. With capabilities like route-optimization and last-mile delivery, multichannel inventory management software helps your company further enhance the fulfilment process and ensure that orders are delivered efficiently, precisely, and economically. Enables To Expand Your Business Quickly You may scale your business in various ways, such as adding more items, expanding your distribution channels, partnering with more suppliers and manufacturers, and keeping inventory in multiple warehouses. Additionally, growing in any of these methods becomes more challenging if inventory needs to be manually tracked. By implementing multichannel inventory management to enhance the delivery process, you can also increase the productivity of your business. In addition, numerous software capabilities, such as automatic planning, route adjustment and order monitoring, analytics, and more, may completely transform your company. In addition to guaranteeing quick, correct delivery for your clients, doing this will free up your time to concentrate on the essential aspects of running your company: developing, promoting, and selling high-quality items. 8 Key Features Of Ideal Multichannel Inventory Management To have an impeccable multichannel inventory management system, look out for the key features mentioned below- Native Integrations  Without extra third-party connectors, every multichannel management system is worth being competent. In addition, it should be able to connect to every e-commerce channel you use. By taking third-party integrations out of the picture, disconnections will decrease. A seamless connection guarantees a smooth workflow. Additionally, you often receive better and quicker assistance with native integrations built and managed in-house without an intermediary. Integrations for e-commerce can help speed up the payment procedure. For instance, businesses that accept payments through various payment gateways would want an order management system with robust integration capabilities. By doing so, businesses may control payments and refunds without ever leaving their main system. Flexible Alternatives For Order Fulfilment Flexible order fulfilment solutions are necessary if you want to deliver orders to customers as quickly and affordably as possible. Based on your procedures, a multichannel order management system should be able to automate multichannel order fulfilment. For instance, based on the channel the order came from and the location of the delivery address, it should be possible to choose the fulfilment strategy or warehouse automatically. Inventory Management At Multiple locations When it comes to inventory management, a multichannel order management system excels. You will be able to view all your inventory in one seamlessly connected location, as opposed to having to view it individually for each e-commerce channel or manually combine it with other goods into a basic inventory management system. For order fulfilment, the inventory may be sent to warehouses with stock available using multichannel inventory management software, saving you the time required for manual rerouting. They can even start backorders or buy orders with suppliers to restock stock levels in the future. Point Of Sale Integration Do you ever wish that the inventory you sell through your e-commerce channels and the merchandise you trade in your physical shop could be promptly reconciled? That is possible with multichannel order management systems with integrated POS. This is extremely helpful if you give your clients a choice to buy online and pick up in person or to click and collect. Planning Inventories Using Data When you use a multichannel order management system with integrated inventory planning, you can access all your data from every channel at your fingertips. As a result, you can predict which things to sell when and through which channels. A data-driven inventory planning system can improve your inventory management using useful KPIs, enabling an effective data-driven growth strategy. Process Automation The world is evolving due to automation. Nowhere is this truer than in the e-commerce fulfilment industries. Workflow automation may be scaled to your company's demands, taking over the time-consuming tasks so you can focus on the things that require human interaction. To build a seamless omnichannel customer experience, you may control the process automation across all of your various sales channels. Your order management software's incorporation of workflow automation will hasten order processing, reduce human error, and ensure quick delivery and order correctness to your consumers. Business Reporting and Intelligence You don't want to waste time while making decisions for your company. You want to have access to all the information you require immediately. A multichannel selling management system must feature simple yet capable reporting that can gather information from your sales channels and provide you with in-the-moment business insights. Additionally, you should consider using retail business intelligence, which will give a comprehensive account of your company's performance, if you want to gain more in-depth insights into your channels, goods, and customers. Consequently, you will have all the information necessary to make data-driven decisions. Accounting Purchases Post-purchase analytics are crucial for running your company. The ideal order management system should make them as simple as feasible. To transfer real-time data into your preferred retail accounting software, look for an order management system that offers inventory, demand, warehousing, and buying information. You'll be able to make wiser business decisions if you have access to your financial data from several sources on a single platform. 4 Factors To Look For In Multichannel Inventory Management Software The most excellent and dependable multichannel inventory software may be found by considering several options. First, you must thoroughly understand your unique business requirements, the size of your company, and the number of warehouses you have to select the appropriate software. In a multichannel environment, inventory management may be challenging. You must know the particular integrations and capabilities needed to sell and restock your items, which vary from business to business. Redundancies and workflow disruptions can be avoided by choosing the appropriate tool combination. So that you can select and incorporate the ideal software choice for your inventory management, there are a few things to consider. These consist of: Controlling Inventory and Predicting Inventory control and forecasting should be considered when limiting your software selections since they serve as the foundation of your inventory management. Therefore, it's to your best advantage to pay special attention to the following before committing to a specific system: Flexibility in Stock Keeping Units (SKU) The finest software enables autonomous tracking of bundles and kits and individual goods, key components, and product variants. This SKU flexibility enables instant access to your product data, aids in tracking your inventory across all channels for timely replenishment, and allows you to keep track of your best-selling goods. Forecasting One of the most critical factors in inventory forecasting is the sales history of a product. To be able to look back on it or use it in calculations for inventory planning, your programme should capture and preserve sales data for years. This is now more crucial than ever as COVID speeds up the adoption of e-commerce. In addition, accurate inventory and supply chain forecasting puts brands and marketplace vendors in a better position to benefit from the profits. Data from Every Channel The key to more efficient inventory management is to gather data from all your sales channels to create a single repository for your sales data, fulfilment data, and supply chain automation processes. In addition, to acquire a comprehensive understanding of product performance and operational profitability on a per-SKU, per-channel basis, you should ideally be able to combine the data from each sales channel. Scanning and Barcoding For larger companies with multiple warehouses and fluctuating inventory levels, this is one of the most crucial factors because barcoding and scanning make it much simpler to collect real-time data from your various warehouse locations and guarantee you're working with real-time, accurate stock data. If you use barcoding technology, it will be an essential part of managing your multichannel software. However, Barcode systems cannot be integrated with every multichannel inventory management software. Therefore, verify that your entire toolkit will function as a unit and that your operations software is compatible with your barcode accessories. Another option is to utilize a mobile device to scan stock using an app like Barcodes or Scout. Analytics The usefulness and efficiency of the tool will also be influenced by the inventory analytics you have access to in your programme. It is crucial to prioritize in-depth access to the data you want and to conduct research on the reports the programme offers. To make the necessary modifications or adjustments as your firm continues to sell, ensure the business information you get is actionable and quantifiable. Configurability and Customization It's not always simple to customize inventory management system. However, as no two organizations run similarly, customization and configurability are crucial components. Implementation will be more straightforward the more you can personalize and customize your multichannel software. Choose products with a robust App Store or integrations directory. Conclusion Software for multichannel inventory management is necessary for any company that wants to run smoothly and efficiently. As a result, companies of all sizes enjoy the most effective inventory management system that enhances customer satisfaction and facilitates a seamless customer experience while balancing the budgetary constraints associated with everyday operations. It would be best if you had a robust multichannel inventory management strategy to prevent overstocking and stock-outs and guarantee that customers receive what they request. Then, your e-commerce firm can quickly profit from using the proper software. Strong Multichannel Inventory Management From WareIQ For experienced merchants, WareIQ's integration offers a powerful multichannel inventory management solution. Our services ensure that your listings reflect the correct numbers and that your product data is accurate. At the same time, WareIQ quickly and affordably fulfils orders across your marketplaces. In addition to helping with online order fulfilment, WareIQ also provides a B2B fulfilment Suite that enables merchants to sell throughout the whole B2B ecosystem. This suite powers wholesale shipping and retail drop shipping, which can link with all of the leading shops in the nation. By collaborating with today's best eCommerce fulfilment and operations platform, you can exceed customer expectations, prevent mishaps, and prevent forecasting glitches from depressing your sales. WareIQ offers the best-in-class features such as a custom WMS that records changes to inventory in real-time and across sales channels and fulfillment centers and allows users to keep track of their inventory levels, integrations with more than 20 of the leading eCommerce marketplaces such as Amazon, Flipkart, eBay and much more, intelligent inventory placement suggestions in fulfillment centers close to high-demand locations and transport facilities, automated warehouse activities and much more, thus enabling more efficient multichannel inventory management, at lower prices than most competitiors. [signup]

July 01, 2022

How Does Decentralized Inventory System Help in Adapting to Changing Buyer Behavior & in Growing eCommerce Businesses in 2022? Benefits And Challenges Of Having A Decentralized Inventory Management

How Does Decentralized Inventory System Help in Adapting to Changing Buyer Behavior & in Growing eCommerce Businesses in 2022? Benefits And Challenges Of Having A Decentralized Inventory Management

Ordering merchandise, shipping, storing, and selling become critical decisions that must be made as firms expand. Increased industrial storage is required to expand the range of items offered and enable products to reach a greater geographic area. A critical choice during this expansion phase is whether to transport goods from a single central site or smaller warehouses dispersed around the country. Both centralised and decentralized inventory has benefits and drawbacks, and their use depends on the organisational structure, individual objectives, and management methods. According to the U.S. Census Bureau, manufacturers, retailers, and merchant wholesalers in the United States had inventory worth more than $1.9 trillion in June 2018. Believe it or not, according to experts, roughly 90% of a company's inventory is stationary. It is kept in storage, whether on racks in a warehouse or on shelves in a store. A company's merchandise is only genuinely in transit 10% of the time.  So it becomes essential for the organization to think about managing their inventories. In this article, you will learn about centralized and decentralized inventory systems with how to maintain a decentralized inventory system, which helps expand the reach of your business. What is a Decentralized Inventory Management System? Decentralized inventory refers to an inventory management system in which the items are moved from a central location to other warehouses, further decentralising the process. This technique is appropriate for businesses whose clients are dispersed across the country. Quick delivery also contributes to enhancing client happiness and service. Decentralized inventory aids in more effective and quick emergency response. The risk of fire and other natural disasters is reduced since all the commodities are kept in various warehouses. Products are more vulnerable to dangers if kept in a single location. For example- As an illustration, imagine that you own a Delhi-based online business with regular consumers from Maharashtra, Rajasthan, and Karnataka. You only have one warehouse in Gurugram from which you transport goods to particular regions of the nation. A centralized inventory system is what this is. Due to the proximity of your location to your consumers in Rajasthan, their orders will arrive swiftly. Customers from Maharashtra and Karnataka, on the other hand, are dissatisfied with the extended shipment delays. As a result, in addition to the current facility in Gurugram, you plan to establish regional warehouses in Mumbai and Karnataka. When you receive an order, you can determine which facility is nearby to the customer's delivery location and send the product there. If the item is out of stock at that location, you ship from the nearest warehouse. A decentralized inventory management system is what this is. Although it may seem enticing, implementing and maintaining a decentralized inventory management system successfully calls for strategic planning and a top-notch management system. 4 Challenges Of Having a Decentralized Inventory and Multiple Warehouses  A large body of management theory supports decentralized warehouses, but ignoring the difficulties they provide would be naive. Instead, we need to consider a few things, including administration, inventory visibility, and employee-related problems across various warehouses. Inventory Control Supply chain management becomes more challenging when inventory is dispersed among several distribution sites. However, when everything is in one place, management is focused there, reducing processes and lowering expenses. Retailers can feel as though they have to give up inventory management due to a lack of clarity when there are products in numerous locations. Although ERP systems should in theory support these tasks, they're not always reliable and can occasionally lead to inventory shortages or errors. Management Of Decentralized Inventory Naturally, managing numerous sites is more difficult than managing just one. More staff, inventory, and administration are necessary when there are many warehouses involved. Warehouse operations may easily become complicated and disorganised if warehouses are shared, serve as distribution centres, or serve as drop shipping destinations. Even if everything could run perfectly in one place, increasing inventory locations might make procedures more difficult and even endanger regular business operations. Coordinating Warehouse Shipment Costs Calculating a rate or lead time for shipping from a single location is almost always constant. Shipping from the same location each time implies predictable cut rates and transit times, giving clients the transparency they expect in their purchase. The number of considerations increases significantly when locations are included in the equation. Which warehouse will handle shipping for the order? Does the customer's closest warehouse have the variety of goods they need? Have you got a lot of stock in one place but a dangerously low quantity in another? Of course, making decisions in several locations is more difficult than doing it at a single location. But how will this impact the choices you make about your inventory? Prior to adding more sites, it's critical to build a plan for these factors. Having the proper tools in place is essential for controlling shipping costs between warehouses. Utilizing Decentralized Inventory Management to Address Challenges A multi-location distribution system or decentralized inventory offers several advantages over other approaches, despite its difficulties. Businesses that struggle with long lead times, dissatisfied consumers due to transit periods, or a lack of distribution flexibility should carefully consider multi-warehouse management and how it might address these issues. The option of having smaller or fewer facilities is another benefit of a decentralised supply chain for e-commerce firms. These warehouses can be handled quickly and adaptably, providing retailers with greater insights into the levels, demands, and shortfalls of inventory replenishment. In the end, merchants almost always benefit from the flexibility that comes with decentralized inventory management. [contactus_lilgoodness] How Can a Decentralized Inventory Aid in the Development of Your Online Business? Decentralized inventory could be a wise investment for growing e-commerce companies. With smaller, local facilities, businesses can deliver goods to clients more quickly. In addition, warehouses may be able to act as client pickup places depending on their location, a service that is becoming more and more popular every day. Lower Shipping Expenses Your distribution options are immediately doubled when you add even a single warehouse location for your goods. You may be able to significantly reduce transit times and shipping costs owing to greater proximity to more consumers, depending on the strategic position of your facilities. Shipping costs decrease when warehouses are positioned closer to delivery sites. Expand Your Consumer Base Similar to the advantages of lower transportation costs, expanding your network of sites can help you reach clients who live farther away. If their order will be delivered in just a few days, a consumer interested in a pair of shoes from our go-to shoe shop is far more likely to order. Shipping may take a few weeks if the business just had one location, providing customers with an incentive to purchase somewhere else. Your prospective consumer base will grow as a result of expanding your footprint, which will increase your revenue. Quicker Local Delivery Times Having numerous warehouses boosts a local customer's ability to pick up purchases directly or provides them access to same-day delivery, especially in the age of curbside pickup and same-day delivery. With these choices available, shoppers might be able to purchase and get goods on the same day. You can only provide immediate pickup to consumers in one location if you have one warehouse. However, distributed warehousing brings your items and additional consumers together. 6 Factors to Consider Before Implementing Decentralized Inventory Control system A decentralized inventory system can appear to be the magic solution for a failing eCommerce warehousing company in the continuously changing eCommerce fulfilment industry. It may not be the best method for everyone due to a few factors that may alter its effectiveness. Before implementing decentralized inventory control, take into account a few variables that may have an impact on how it functions for your company. What is the Weight of my Goods? It might not be beneficial to have inventory in many locations if you sell heavy goods, such as furniture or exercise equipment. It might not be a wise investment to transport merchandise first to a warehouse before sending it from the production or import site because shipping prices for things like this are already rather high. To What Location Do I Deliver Orders? It might not be a good idea to distribute merchandise outside of the general area of your consumer base if your business is largely reliant on local clients. A seller of umbrellas, for instance, definitely doesn't need to move their business from Seattle to Arizona and may even lose financially if they did. What Are The Running Expenses For Several Warehouses? Spreading your items over many locations can not be advantageous if they need specific attention, such as refrigeration or routine quality inspections. Given how expensive it already is to store this kind of merchandise, increasing the expense of keeping them might not be a wise investment. What is the Amount of Orders Each Month? Using numerous warehouses is generally not essential if you just transport a few high-value items each month. It could be best to keep things straightforward and centred with only one site while eCommerce companies are still in the beginning or growth phases. It can be required once you've ramped up and are getting a bigger stream of orders. Do Businesses Really Need Additional Warehouses? The eCommerce logistics industry is now buzzing about decentralised inventories. Given all the talk about it, it could appear essential to expanding your company. However, now might not be the best moment to consider decentralising your inventory if your shipping issues do not include inventory location. Is the Current Technological Setup Ready for Several Warehouses? Do You Require a Solution for Managing Many Warehouses? Do you currently use an ERP? a management system for warehouses? What software do you currently use to manage your business? Make sure your systems are strong enough and prepared to manage the shift before making the jump to distributing your products. The single most important action to do before starting the shift will be to be well-prepared. 7 Best Practices For Maintaining A Decentralized Inventory System Researching and implementing an Enterprise Resource Planning(ERP), or a Warehouse Management System(WMS) will be one of your initial stages. Your work will be a lot easier and business operations will run much more smoothly if a software solution is in place to handle things. Are you prepared to explore dispersed inventory? It's a wise choice that will benefit you. To fully profit from the distribution, you'll need to set it up properly in the meantime. Here are a few of our pointers for successfully managing Decentralized Inventory Balance Your Stock Levels In order to maximise storage space and prevent fulfilment delays, your data should be used to establish stock levels. To effectively manage your inventory across all warehouses, you must determine your maximum, minimum, average, and order levels by taking a look at your product sales, inventory turnover, and lead time rates. To keep expenses low, it's crucial to maintain strict control over your stock levels and make sure they are balanced. Why? Because it reduces waste and guarantees you are not putting too much strain on your finances with high stock expenses. In order to select which warehouse to stock which goods and maximise product levels, you need also pay attention to the following KPIs: Your per-order processing feeYour lead Time Statistics (or order fulfilment latency)Your Ideal Order Rate Watch Your Bestsellers Closely The most crucial goods to maintain will be your most well-liked offerings. Setting up minimum inventory levels of these items at each site is a smart move to make sure you can send them out from each warehouse swiftly. It's crucial to anticipate these trends and have extra stock of these items because they will frequently sell out. Count Product Stock In Decentralized Inventory System It's crucial to make sure you do stock counts at each facility. Ecommerce retailers frequently make the error of believing they simply need to track the overall quantity of items without taking into account the product levels at each warehouse when transitioning to a decentralized inventory system. To guarantee that the stock levels we indicated are balanced at each warehouse, you must be aware of all of your items there. If you aren't utilising decentralized inventory management software, you'll need to work hard to keep an eye on product counts at each warehouse since running out of a product at one warehouse can cost you time and money. When you have a lot of items, divide your inventory counts into focus lists so that you don't have to count every item all the time. The most effective approach to achieve this is to separate your items into high-risk (those with the poorest history of inventory counts) and high-value categories (products with the highest revenue potential.) Utilize Both Movable and Fixed tracking Long-term headaches may be avoided by making an investment in your inventory management. To build a reliable inventory management system, fixed and mobile tracking are required. Why? Since you can precisely assign warehouse destinations by combining fixed and movable tracking options, you can be sure that you always know whether the hardware needed to process the order is up to par, where each product is placed, what its status is, and which products are ready for fulfilment and shipping. Simply said, it streamlines and expedites your fulfilment services. Here is a brief explanation of each for those who are unfamiliar with warehouse management jargon- Fixed Tracking Fixed tracking, sometimes referred to as asset tracking, is the continuous observation of your production-related machinery as well as any equipment that supports your warehousing and fulfilment centre operations. To track the location and status of equipment, utilise RFID tags or barcodes. Movable Tracking Movable tracking, sometimes referred to as inventory management, is the process of keeping track of each product and how many you have on hand, as well as which items need to be refilled and which ones are in excess. In a nutshell, it's the administration of your inventory and figures in real-time. Not Every Product Needs to be Stored in Every Warehouse The number of goods you sell will increase along with the size of your eCommerce logistics business. It makes no sense to keep all of your goods in every warehouse. As we mentioned above, one of the greatest strategies is to divide your inventory into best- and worst-sellers, and then stock your warehouse appropriately. To enable speedier, more affordable delivery, you may, for instance, make sure that your bestsellers are present at each warehouse site while keeping all of your slow sellers in one warehouse and your medium sellers in another. Remember that clients may request many products at once that may be stocked at different locations. Due to the possibility of having to fulfil items from several locations, this may result in additional shipping and packaging expenses. It would be beneficial if you compared these expenses to the warehouse layout you choose and, where it is practical, matched goods that are frequently stored together. If you aren't arranging warehouses with decentralized inventory management software, label your items as out of stock once they have been transferred to the new location. Real-Time Data Update The most important decentralized inventory management advice is to make sure that your ordering systems and warehouses' data are in sync to avoid delays. You can get away with this manually if you operate a tiny business from your home with just one warehouse. However, if your company is expanding and adding more than one warehouse site, a robust decentralized inventory management system, like the new Multi-Warehouse Management feature, is the only method to handle data in real-time. This feature enables you to: Build decentralized inventory warehousesControl inventory levels and move it across warehousesManagement of warehouse inventory allocation depending on channelsImplement connectors with 3PL and Amazon FBAManage dropship ordersImplement automatic order routing by the supplierMake invoices, shipping labels, and packing slips.Receiving order notificationsIntegrate with shipping software and carriersAccess order status in real-time across all markets Utilize Cross Docking and Wave Picking  Make sure you are preparing for a lean operation when organising your decentralized inventory management. In other words, you aim to minimise expenses. You may accomplish this with the use of two warehouse management systems: wave picking and cross-docking. In the latter, a product is dispatched out as soon as it is received. Alternatively, if you make your goods, consider it a method that allows for considerably less storage space, lowering warehouse expenses. However, it becomes difficult to retain this storage option as your organisation expands without creating fulfilment issues. Wave picking entails greater storage capacity so that orders may be completed in sequence throughout the day, making it preferable for larger, expanding businesses. Utilizing these strategies can ensure a distinct, lean system in your intricate shipping system if you have adequate inventory management software. Centralized vs Decentralized Inventory Management System The primary difference between centralized inventory and decentralized inventory is that the former refers to an inventory management system in which the goods are moved from the primary warehouse to various warehouses that are close to the consumer's residence. The latter refers to an inventory supervision mechanism in which all necessary operations are carried out in a central setup. Centralized Inventory This inventory management system conducts all activities in a single place. Despite the possibility of separate product-based storage areas, storage is frequently done in one big warehouse. The same crew handles all inventory, and the same transportation techniques are used. The majority of e-commerce businesses, including Amazon.com, use it. Utilizing centralized inventory has several benefits, such as: It makes it simpler to promote and uphold the corporate culture.Operating expenditures like rent and other utilities have decreased significantly.The lowering of expenses results in higher profits.Better customer service is delivered by emphasising the use of trained personnel, improved methods for responding to questions and requests, and improved tools.Management responds quickly to any issues with goods or procedures. Despite the many benefits, a decentralised inventory has a number of drawbacks, such as: Rush delivery and high transportation expenses, particularly in the long term, may be passed on to the client.Result in competition for resources like human resources Decentralized Inventory Decentralized inventory entails distributing your stock among several sites. Large retailers like Amazon frequently use these multi-channel distribution techniques. This method offers a wide range of advantages as well. When items are kept in warehouses close to clients, merchants may reach them in more places in less time. Additionally, it reduces the danger of keeping all goods in one location in the unlikely case of tragedy or poor management. The following are the main benefits of decentralized inventory: When compared to a centralized inventory management system, the system's distribution flexibility is substantially greater.There is a bigger decrease in the cost of transportation.Additionally, the shipping time is drastically cut down. The following are the main drawbacks of decentralised inventory: Significantly greater operating and investment expenditures.Inventory management calls for additional physical labour and personnel.Additionally, the control expense is somewhat greater.The likelihood of incorrectly allocating products is higher. Tabular Representation: Centralized Inventory VS Decentralized Inventory System [table id=33 /] Centralized vs Decentralized Inventory Management: Which is Right for Your Business? Decentralized inventory is defined as inventory that is held in many locations and warehouses, as opposed to centralised inventory, which is defined as inventory that is stored at a single location.In the case of centralised inventory, top management makes the decisions, but in the case of decentralised inventory, lower and middle management make the decisions.Less labour is needed for centralized inventory control. On the other hand, the latter situation necessitates more personnel.In contrast to a decentralized inventory management system, which may not guarantee price consistency, a centralised inventory system guarantees price uniformity.The likelihood of theft from consolidated inventories is quite low. On the other hand, there is absolutely no chance of theft with the latter. Conclusion The two main warehouse distribution types are, broadly speaking, centralised and decentralised. Between the two, there is a third choice, but all models are vital and relevant. Understanding your clients, regional presence optimization, fulfilment capabilities, and other factors are necessary when selecting one for your company. Because there is just one site rather than several, inventory management is simpler and more cost-effective with a central warehouse. Transport costs, however, can be rather high depending on how far shipments must go. Not all clients or consumers will be in close proximity to the core hub. A decentralised strategy keeps the warehouses dispersed and much closer to the final consumer. Over the centralised paradigm, order fulfilment, shipping times, and customer service frequently increase significantly. With a shorter distance between nodes, transportation expenses are also significantly reduced. However, operating costs are substantially greater and rise as more sites are opened. Both models provide options for outsourcing and cutting-edge automation to build a more streamlined and effective company. It frequently boils down to the demands of the typical consumer. Which model will best serve their needs, and how can the organisation help? WareIQ As A Inventory Management and Fulfillment Partner It is feasible to create a hybrid system using both methodologies, with WareIQ. The hub of operations, where all the inventory or product is normally kept, is a central warehouse. They are known as branch warehouses or decentralised warehouses and support several nodes that are located closer to the end-user. Only high-demand items are stored and managed in the branch warehouses, with real-time analytics and efficient distribution based on market demand. In other words, the smaller warehouses provide clients with faster delivery of the most popular items together with superior customer support. All of the inventory that the company controls, including more specialised items, is kept at the central warehouse. Additionally, it restocks the branch warehouses as needed. The combination of centralized and decentralized inventory is made possible and more effective than it would be without WareIQ's cutting-edge technologies, such as advanced computing, machine learning, AI, and big data. With WareIQ, What does Having Such A Decentralized Inventory Mean To Your Brand and Service? Benefits to business and consumers for having a decentralized inventory with WareIQ are as follows:  Faster Pan-India delivery with better shipping timeline/tracking. Data-driven optimization of your business. Efficient and smart inventory placement powered by the philosophy of "supply where there is demand". Helping meet the customers' expectations of an Amazon-level service.Reducing cancellations due to delays in delivery.  Managing a central warehouse is cheaper but it comes at the cost of the cons we have discussed earlier. Outsourcing the decentralization of your inventory to a platform like WareIQ can actually bring down the overall costs as it improves business and customer retention. It also helps in achieving better operational efficiency- i.e providing superior services to the customers at the same cost. Also, managing local demand surges and scaling your business in new cities becomes easier. For a customer, it means faster delivery (within 1 day) and options like same-day pickups. They may no longer be bound to Amazon when they expect the same. It also increases their reliability and trust in the brand.  [signup] FREQUENTLY ASKED QUESTIONS What distinguishes a centralized from a decentralized inventory system? A centralised inventory management system is one in which all activities are performed in one location. A decentralised inventory, on the other hand, is a method of inventory control in which goods are moved from a central office to various places that are close to the client. What impact does decentralized inventory have on the inventory control system?A decentralized inventory setup enables quicker customer delivery times if you have many clients dispersed across a big area. Because local consumers might prefer picking up their item to having it transported, it can also enhance customer service. Which is better Centralized or decentralized inventory?Decentralized inventory systems function well if a company has a sufficient number of competent employees who can act promptly. On the other side, centralization of power is favoured if management staff are followers and lack initiative. What's a good illustration of decentralized inventory businesses?Hotels, supermarkets, apparel showrooms, and other businesses are good examples of decentralized inventory businesses. because it is impossible for one individual to concentrate on several places that can be located all over the planet. Why do businesses decide to decentralize their inventory?As their businesses grow, organisations frequently decide to decentralise their inventories. With more items being sold, it may become impossible for one manager, or a small group of managers, to supervise the entire business.

June 29, 2022

How to Improve Regional Utilization and Optimise Demand-Based Inventory Distribution for Faster eCommerce Fulfillment with Accuracy & Lower Inventory Holding Costs?

How to Improve Regional Utilization and Optimise Demand-Based Inventory Distribution for Faster eCommerce Fulfillment with Accuracy & Lower Inventory Holding Costs?

Brands must provide faster deliveries and effective order fulfillment as competition in the eCommerce sector heats up. It is essential to be able to predict demand effectively and keep inventory levels in line with consumer demands. The amount of time it takes an eCommerce business to deliver an item to a customer's door has a significant impact on how customers perceive a brand. It is essential for both small and large businesses to fulfill orders quickly and accurately if they want to grow their eCommerce consumer base. Smaller brands must increase their consumer base through flawless order fulfillment while larger companies and international brands must preserve their brand reputation and existing customer base. To make delivery quicker and more cost-effective, eCommerce businesses are practising regional utilization. Let us get a better understanding. What is Regional Utilization? Regional utilization (RU) is an eCommerce calculation term which reflects the percentage of local and zonal order fulfillments out of the overall order fulfillments. Giant eCommerce players consider regional utilization (RU) as a significant factor in determining the seller account status. Electronic brands and sellers often prepare their stock for some of the most awaited eCommerce season sales like Amazon’s Great Indian Festival or Flipkart’s Big Billion Day. Regional utilization (RU) ensures faster delivery and reduces additional logistic costs. [contactus_lilgoodness] How to Calculate Regional Utilization? The following illustration shows the regional utilization (RU) formula: Let's see, with the help of an example, how regional utilization (RU) is calculated. Suppose you have 10 fulfillment centers across India and the following factors are at play: You received 25 total orders in the month of July, 5 from New Delhi, 5 from Mumbai, 5 from Bangalore, 5 from Pune and 5 from Chennai. Out of 25, you managed to fulfill 15 orders locally. Therefore, your regional utilization (RU) = 10/25 X 100 = 60% Why Should an eCommerce Business Figure Out Their Regional Utilization? Businesses calculate regional utilization (RU) for a variety of reasons, including: To Get Faster Order Fulfillment When inventory is stored in close proximity to your customers, their orders can be fulfilled at a faster rate due to the less amount of distance that needs to be traversed and less time needed to travel that shorter distance. For instance, if your company has fulfillment centers located in Mumbai and Pune and you get the majority of your orders from those 2 cities, fulfilling orders will be much faster than if your fulfillment center was located in Nashik.‍ To Achieve a Lower Amount of Returns If there is an unforeseen delay in the fulfillment of an order or delivery timelines are generally longer due to the physical distance between the fulfillment center and the customer, there is a higher chance of customers initiating a return. When businesses take advantage of regional utilization, they reduce the wait time that customers have to endure and thus, reduce the number of returns that are initiated. ‍‍To Save on Shipping Expenses By making use of regional utilization, you can save immensely on your shipping costs because prices increase along with distance and if the distance is shortened due to goods being located to the customers that order them, shipping expenses automatically decrease. To Increase Profit Margins Regional utilization not only reduces shipping and logistical expenses, it also increases the efficiency of fulfillment operations, including saving money on returns management. All these elements when put together lead to an overall increase in your company’s profit margins. Some more important uses of regional utilization are listed below: Finding the inventory allocation across the country according to demandCreating a successful strategy for effective deliveriesChanging to a low-cost shipping moduleIncreasing product visibility better helps your seller account on online marketplaces to perform better Reducing RTOsIncreasing customer satisfaction by meeting their expectationsOffering same-day deliveryStoring different inventory items at different locations as per their order volumes 6 Ways to Improve Regional Utilization & Optimise Demand-Based Inventory Distribution To improve regional utilization (RU), eCommerce businesses can adhere to 6 methods mentioned below:  Keep Warehouses at Multiple Locations A centralized warehouse is easy to manage but it increases the cost and time of delivery which not only affects your revenue but also customer satisfaction. It is always better to have decentralized inventory at multiple warehouses across the country to reach customers faster, that are located in any nook and corner of the country. Have a Trained Resource Pool of Warehouse Operations & Delivery Personnel Trained human resources in warehouse management & last-mile delivery can make the task of regional utilization easy, as they will ease operations and smooth your delivery processes. They can personally handle any task with great effectiveness. Opt to Partner with 3PL Partnering with a trusted 3rd party logistics company helps you to take more and more orders and then easily fulfill them. A few fulfillment partners come with the feature of same-day and next-day delivery and have micro fulfillment centers scattered across the country, which increases regional utilization. Never Risk Stock-Out of Inventory Always keep a minimum amount of inventory with you to deliver orders swiftly instead of risking stock-outs. MOQs, reorder quantity and reorder level can help you to avoid stock shortage and purchase it as per your demand, in addition to improving regional utilization. Optimize Data and Forecast Demand Data is the equivalent of gold in the digital market. In today’s world, every business is collecting leads. Data will help your company to forecast its demand and improve regional utilization to offer better order fulfillment. You will not be overloaded with inventory or face shortages during seasonal sales. Use a Warehouse Management System A Warehouse Management System (WMS) is a high-tech software mainly used for warehouse management. It automates multiple warehouse processes which makes fulfilling orders faster and less prone to errors and mistakes. Inventory across multiple fulfillment centers and sales channels can be managed from a single dashboard. Conclusion: How to Optimise Inventory Distribution and Regional Utilization with WareIQ for Faster Order Fulfillment? Regional utilization (RU) is now the standard industry indicator for measuring the effectiveness of eCommerce companies, whereby shipping orders from the same area might greatly raise the market's profit margin. An increase in regional utilization (RU) can address the unbalanced dynamics of supply and demand, enabling quick fulfillment, significantly reducing shipping costs and enhancing the customer experience. We at WareIQ personalize your deliveries according to their demand, priority, locations, etc. We offer branded shipping and micro fulfillment centers across the country to enable regional utilization in most cities and towns. WareIQ is an eCommerce fulfillment platform that offers Prime-like logistics to online brands for same/next day delivery. You can split your inventory in-house or you can use a tech-enabled 3rd party fulfillment company like WareIQ to get access to fulfillment facilities that are strategically placed all over India. We combine a nationwide fulfillment & shipping network, a highly-skilled warehouse operations team and our vertically integrated tech platform & inventory planning product to drive: Over 30% accelerated sales with same/next day delivery options across 20+ marketplaces/D2C platforms80%+ regional utilization & 40% lower holding costs100% compliance with marketplace SLAs with 0% leakage claims in processing returns Regional Utilization: FAQs What is multi-warehousing?Multi warehousing is a means of having different warehouses in prime locations handled from a single platform. It is unlike conventional centralized warehouses where all the inventory is kept and then distributed from there. Role of WMS in Regional UtilizationThe WMS optimizes your order fulfillment data and bifurcates orders according to your preferences and you can filter your orders as per zonal and local deliveries. What is cloud warehousing in eCommerce businesses?In order to assist businesses to get insights and make data-driven business choices, vast sets of corporate data, including both current and historical data, are successfully stored and managed in a data warehouse. How can Regional Utilization help eCommerce companies?Order fulfillment from a local warehouse, results in improved regional utilization to smart inventory allocation across different warehouses which,i) Saves 25% in additional logistical expenses per pieceii) Leads to faster deliveries, increased conversions and visibility in marketplaces.iii) Decreases return rates as a result of quicker delivery Does WareIQ help in demand-based inventory distribution?Yes, WareIQ provides a fulfillment platform with a multi-layered solution providing inventory & network planning excellence. With WareIQ’s vertically integrated tech platform & inventory planning product, online and D2C brands & marketplaces like TCNS, Blissclub, Flipkart fashion etc, have experienced more than 80% regional utilization with 40% lower inventory carrying costs.

June 29, 2022

How to Enhance Post-Purchase Experience in eCommerce With Order Notifications?

How to Enhance Post-Purchase Experience in eCommerce With Order Notifications?

The eCommerce industry is highly competitive, especially in a rapidly expanding market such as India’s, and the onus is on companies to try and find unique ways of differentiating themselves from the competition. As customers begin to order online more often because of the convenience that it brings, more and more are starting to get accustomed to useful convenience features such as ultra-fast delivery and seamless order tracking. In fact, research indicates that more than 83% of online shoppers expect regular updates about the status of their packages. This is where providing transparent and timely order notifications to customers can help to improve their experience and opinion about a company. Read along to get a detailed understanding of order notifications, the overall post-purchase experience and what it entails, and how WareIQ’s notifications app can help provide a stellar customer experience. What are Order Notifications? Order notifications, also called post-purchase notifications, are real-time alerts that are sent to customers to keep them informed about the status of their order and when it is expected to arrive at their destination. They can typically be sent on a variety of mediums such as email, SMS, Whatsapp and even customised platforms such as an order tracking app or a branded tracking page, where retailers are able to provide more detailed information such as product banners, social media links, information about the company and much more, compared to conventional channels. Order notifications are an extremely important facet of modern eCommerce retail as they enable customers, most of which run on extremely tight schedules, to make arrangements to be available to collect their orders. The details that are generally present in post-purchase notifications include the order number, tracking ID, and which stage of the fulfillment process the order is in such as “items have been packed”, “items have been dispatched” and “items are out for delivery”, and the estimated date and time that the package will arrive at the customer’s doorstep. [contactus_lilgoodness] 5 Elements Involved in Providing a Good Post-Purchase Experience to Customers Enhanced Communication Customers generally expect a basic after-sales experience that encompasses a feedback form and details about their purchase. However, something as simple as an appreciative email or message, thanking them for their service and saying a few words about how their business helps the company to stay afloat, goes a long way towards making them feel special and that they are actually valued by the firm. This will also increase the chances of them becoming repeat customers and recommending the company to their family and friends who have similar requirements. Customer Support Some companies often provide excellent customer support while trying to convert interest into a sale and during the delivery process, only to falter after the customer takes ownership of their order. A bad taste can be left in the mouth of a customer who has spent their hard-earned money on purchasing the products of a particular company, only to find that they are ignored or provided with sub-par customer support after the company no longer has an active interest in keeping them engaged. This is where companies can differentiate themselves by keeping a record of prior customers and their contact information, and giving them importance when they have an inquiry or issue. They could even be calling because they are interested in making more purchases so retailers need to capitalize on making them feel like their business is welcome. Increased Consumer Loyalty Research indicates that a customer retention rate of 5% can boost profits by up to 90%. Providing a seamless after-sales experience is essential for businesses who want to retain customers, whether it is through post-purchase notifications, promotional emails or messages thanking them for their business. Customers are more likely to repeatedly purchase from brands that they can trust and that have made a genuine effort to provide an enhanced experience to them, not just to sell them a product, but also to keep them in the loop about future events, campaigns and new product launches.  After-Sales Service It is easy to think of after-sales service as customer support but they are very different in practice and they each have their own role in providing a positive post-purchase experience to customers. While customer support is centred around more technical aspects such as answering calls and solving problems, after-sales service focuses more on making sure that customers are satisfied, even if there are no additional issues that arise. It encompasses things like product returns, facilitating exchanges and much more. Good after-sales service leads to happy customers so businesses need to focus on providing it. Heightened Customer Satisfaction Most customers have enough presence of mind to gauge the difference between genuine effort and doing the bare minimum. To achieve a high level of customer satisfaction, firms have to put in the time and avoid taking shortcuts, as that can often lead to poorer results than what was intended. Additionally, it is also important to keep track of the rate of satisfaction that customers exhibit when they have encounters with different departments of a business. Retailers need to push for feedback in order to understand what their strengths and flaws are so that they repeat and expand the procedures that work and mitigate or adjust the ones that don't. Importance of Post-Purchase Notifications in eCommerce Active Communication is Expected by Customers Post-purchase communication helps firms assert to customers that they genuinely appreciate their business and value their feedback as to where they succeeded and where they fell short, which allows them to make the relevant changes and adjustments to streamline every process and customer interaction. Customers also may have queries or product-related issues even after they have accepted their order so it pays to constantly be available in case they try and contact the company. Order Notifications are Anticipated by Customers It is overwhelmingly clear that customers expect constant and consistent alerts from retailers about the status of their orders, as is mentioned in an earlier portion of this blog. Order notifications provide insight to customers as to which stage of the fulfillment process their package is currently in and when it will reach their destination, allowing them to make the necessary preparations to accept it when it arrives.  Post-Purchase Notifications Inspire Brand Loyalty and Positive Feedback from Customers The post-purchase interaction is the last thing that a customer will experience a business on their current order cycle so it is essential that they are left with a positive opinion. Not only does this increase the chances of them becoming repeat customers, but their positive and impactful reviews on a listing and other public forums can be the push that is needed to convince other potential customers to give the business a chance. 3 Ways in Which WareIQ’s Notifications through the “WareIQ Interact” App Enhances Post-Purchase Experience Order notifications and post-purchase interactions are essential for providing a comprehensive and positive customer experience. Oftentimes, the after-sales services offered by a business are what matters more than the actual purchase itself. This is also something that many businesses neglect to offer so opportunistic retailers can use this as a means to stay ahead of the competition. And if they are partnered with WareIQ and have access to all of our post-purchase offerings, they are guaranteed to be on top of the eCommerce totem pole. If anyone is well-versed with downloading apps on the Google Play Store or Apple App Store, there won’t be a learning curve involved to seamlessly download and install apps on their custom WareIQ dashboard. One of our latest offerings to help retailers offer their customers an exemplary post-purchase experience is the notifications app. Designed to make sending order notifications and other after-sales interactions with customers as easy and seamless as possible, users can simply download apps with the press of a button. WareIQ’s post-purchase notifications app - “WareIQ Interact” enables online businesses to provide a powerful, personalized & automated post-purchase experience to their customers across WhatsApp, Email & SMS during the entire shipping journey. Through WareIQ Interact, you can deliver a personalized & interactive experience to your customers in 3 ways: Engage Customers Across Channels Drive up-sell & cross-sell opportunities by sharing notifications with customers across multiple channels – WhatsApp, Email & SMSAdditionally, lower NDR & RTO rates by seeking direct confirmation from the customer over Whatsapp, Email & SMS Live Delivery Updates Share a variety of live updates regarding your customer’s consignment delivery & alleviate their shipping concerns Track Notifications Access the notifications dashboard to track the history of all communications sent out WareIQ not only offers services like order notifications and post-purchase services but also the entire gamut of operations that are associated with eCommerce fulfillment. This includes facilities such as: A nationwide network of fulfillment centersA custom WMS that can handle inventory managementIntegrations with multiple eCommerce marketplacesA choice of more than 20 of the largest shipping aggregatorsThe most cost-effective and transparent pricing in the businessSmart inventory placementIntelligent delivery assignment based on the quickest routes and cheapest pricesNo minimum order quantityA custom app storeAn RTO shield with insurance and liability protection Post-Purchase Experience: FAQs Why is it important to provide order notifications to customers?Customers often get aggravated when they do not know the status of their order. It is important to provide order notifications so that they can see where it is in real-time and be reassured that it is on its way. What platforms are used to send notifications through WareIQ’s notification app?We commonly send updates through email, SMS and Whatsapp. Do all major 3PLs offer order notifications?No, only certain companies like WareIQ offer shipping notifications, in addition to a vast variety of other eCommerce fulfillment services. Can other applications be downloaded on WareIQ’s app store?Yes, we provide a full suite of multiple applications that are designed to enhance productivity in different areas of eCommerce fulfillment. How can WareIQ’s notifications app help in customer retention?By providing a prolific post-purchase experience to customers through the use of our notifications app, with facilities such as real-time updates, custom email notifications, branded tracking pages and more, they will be more inclined to have a favourable view of your business and will likely choose it for future purchases compared to your competitors.

June 29, 2022

10 Types of Shipping Notifications for Timely Order Updates and for Enhancing Customer Engagement in eCommerce in 2022

10 Types of Shipping Notifications for Timely Order Updates and for Enhancing Customer Engagement in eCommerce in 2022

Keeping customers informed about the status of their order by providing order tracking facilities is one of the pressing concerns of most retailers that operate in the current eCommerce climate, especially in a fast-growing market such as India, where the rate of new eCommerce shoppers is increasing rapidly due to the expanding number of people who are consistently gaining access to the internet and all the lifestyle benefits that come along with it. New customers are more likely than existing ones to be agitated about the status of their order and it is up to the eCommerce retailers to take the initiative to provide constant reassurance that their order will arrive on time. Regardless of whether customers are new or existing, providing real-time updates to the order status will instantly provide them with an enhanced customer experience. Read further to get detailed information on shipping notifications, their importance and 10 types to keep your customers informed. What are Shipping Notifications? Shipping notifications, also called order notifications, are updates that are provided to customers about the status of their order to keep them up-to-date about when they can expect to receive it. Shipping notifications can be sent in a variety of ways such as through SMS, Whatsapp, email or even custom tracking pages. They help customers get a better understanding of whether their order will reach their destination on time or if there will be any delays so they can plan accordingly. The information that is generally present in shipping notifications includes the order and tracking ID, which phase the parcel is in such as “order confirmed”, “items packaged” and “in-transit” and the estimated time of arrival to the customer’s location. [contactus_uth] Importance of Order Notifications for eCommerce Businesses They Provide Transparency to Customers Modern eCommerce customers generally expect that they will have the ability to track their order, whether it is in the form of notifications sent through a messaging app or a branded tracking page that provides them with all the information they need. Customers generally do not like to be kept waiting, regardless of if their food is taking longer than expected when they go to a restaurant or if there is a long check-out queue at a supermarket. This holds especially true for eCommerce retail because they do not have a physical sense of where the product is. Providing transparency through shipping notifications is essential to keeping customers informed at every step of the delivery process. They Enhance the Brand’s Image Customers appreciate it when a business makes the entire process of purchasing a product online to it being delivered to their doorstep as seamless and efficient as possible and order tracking notifications play a big role in that. Even if a delay occurs or an unforeseen issue arises, they will be less likely to attribute it to the business because they are being kept informed about any happenings in real-time. If a customer does not have to go through the effort of having to take time out of their busy schedule to deal with customer care personnel to find out where their order is and instead, can just automatically receive updates as to where their order is and when it will be delivered, their opinion about your business will instantly skyrocket because people appreciate convenience and ease-of-use. They Mitigate Concern From Customers  Order notifications generally reduce the number of frantic inquiries from customers about where their order is. Customers who order online, especially ones that don't have much experience with it, are more apprehensive than if they had purchased their products in a physical store, due to the fact that they cannot touch or see the order until it has been delivered to their doorstep and this is even more amplified for Cash-on-Delivery (COD) orders because they have already paid for it and do not want to risk getting scammed and losing their hard-earned money. Shipping notifications help give them peace of mind by automatically providing constant updates every time the parcel enters a different phase of the fulfillment process so they never have to wonder about where their package is. 10 Types of Shipping Notifications to Keep Customers Informed Order Confirmation This is generally the first interaction with a customer after they have ordered an item and it is confirmed by the company. It can be in the form of an automated email or message informing the customer that their order has been received and is currently being processed. In the event of a payment error, if it is a prepaid order, businesses will also have to keep track of whether the money has been credited to their account and notify the customer accordingly. Order is Being Shipped An automated notification can be triggered through the business’s preferred contact medium, that the order is being shipped. This refers to the process of the order being picked up from the warehouse or fulfillment center by the relevant shipping aggregator, who will then transport it to the city or town where the customer is located. Customers are generally reassured when they see this notification because it means that the order has been successfully dispatched from the warehouse, without any complications. The order status can be provided with the ETA as retailers will generally have a better idea of when the package will reach once it is in transit. Order is Sent for Delivery Once the order has been shipped to the city or town where the customer is located, the ground-level delivery personnel will be assigned the task of last-mile delivery to the customer’s doorstep. As soon as this happens, the order tracking page needs to reflect the updated status and a notification should be sent to the customer with the estimated delivery time to ensure that they will be available to collect it. The contact details of the delivery executive can also be provided in case there is any issue en route to the customer’s destination. Order is Successfully Delivered After the order has been successfully received by the customer, a notification can be sent to the customer detailing all the relevant information such as the product, amount, payment method, date of order confirmation and date of delivery. Retailers can also use this as an opportunity to promote similar or complementary products, provide tips for product maintenance and push for feedback about how the whole interaction with the company went, from purchasing the product to receiving the delivered item. This will help retailers generate positive feedback in the case of successful delivery or identify areas of improvement, in the event that the customer is displeased about something. Order is Cancelled, if Applicable Orders can be cancelled at any time, for a variety of reasons. In the event of a cancellation, customers need to be notified that is successfully done and that the order will no longer be delivered to them, to avoid any confusion. Retailers can also push for feedback regarding the reason for the cancellation and provide assurance that their money will be refunded within the relevant number of days, in case they have already paid for it. Order is Delayed, if Applicable Shipping notifications must be sent if any delay or issue occurs before the order has been delivered or dispatched. Delays could occur for a variety of reasons, in any phase of the fulfillment process, such as the product being out of stock at the warehouse, the delivery partner being stuck in traffic or bad weather and much more. It is the duty of the retailer to inform the customer about these delays and adjust the ETA, if necessary so that the customer will be informed and can better plan to be available to receive the order on the revised delivery date. Order Has Had an Unsuccessful Delivery Attempt Oftentimes, the delivery executive reaches the customer’s location, only to find that there is no one to collect the order. This is due to a variety of factors and even the slightest variation between the ETA and the actual delivery date and time can cause the customer to be unavailable and not be able to make prior considerations. Order notifications need to be sent to inform the customer that a delivery attempt was attempted unsuccessfully and can inquire about an adjusted date as to when they would be available to collect it. Order is Undeliverable Due to Loss or Damage Even with the use of advanced order tracking systems, goods can sometimes still get misplaced or damaged in transit, which is out of the retailer's control. If such an incident occurs, it is best to send a shipping notification to the customer informing them of the event and reassuring them that a new replacement order is on its way. Even though unforeseen circumstances may occur, retailers can maintain customer satisfaction by handling it in an appropriate manner. Return Initiation by the Customer Returns can occur for many different reasons, some of which can be blamed on the retailer such as damaged products being received, wrong items being packaged at the warehouses and unforeseen delays. However, there are many instances where returns are initiated due to no fault of the seller such as buyer's remorse from the customer, them finding a better deal elsewhere or simply because they changed their mind. Either way, when a return is initiated, an order status notification can be sent to the customer containing an acknowledgement of the return, a summary of the condition of the returned items, a status of the refund of the payment, if any and more. You can read more about how companies manage returns. Exchange Initiation by the Customer In some situations, customers opt for a product exchange, rather than a return. During these circumstances, shipping notifications can be sent containing an acknowledgement of the exchanged items, an adjustment to the price if needed and all the conventional order tracking notifications such as “order confirmed”, “order has been shipped”, and “order is out for delivery” and “order has been delivered”, to make the customer aware of the order status of their exchanged products. Conclusion: How Can WareIQ Help to Provide the Best Shipping Notifications to Customers? Shipping notifications have become an essential component of the eCommerce fulfillment process. Customers demand to be kept up to date about the status of their orders and if they aren’t, the business can face a significant amount of backlash, which can have a further negative impact on attaining new customers. Order notifications can be easily provided due to the vast amount of technology that is available. However, if you are an eCommerce retailer and want to provide a truly personalized experience to your customers, you can consider partnering with WareIQ.  WareIQ is one of India’s fastest-growing eCommerce fulfillment providers that uses a centralised technology platform to enhance the experience of retailers and their customers. We provide a vast array of services that encompass the entire suite of fulfillment operations from storing your inventory in our fulfillment centers to delivering products to your customers. In terms of providing shipping notifications and a stellar customer experience, we offer the many services, some of which are listed below: Branded Tracking Pages Our branded tracking pages allow retailers to provide a truly personalized experience due to the high rate of customization that can be tailored to each individual customer. Instead of just a generic tracking screen, you can insert product banners, information about your brand, social media links and much more. Customers will end up spending more time on the tracking page, browsing through complementary products and getting a better idea about your company, which can even lead to repeat purchases. This will definitely enhance their experience and make your brand stand out from the rest. Notifications App - WareIQ Interact We provide a custom app store with multiple downloadable apps to enhance various aspects of your business productivity, similar to the Google Play Store or the Apple App Store. WareIQ offers a notification app named “WareIQ Interact” where every element can be customized and multiple orders can be tracked right from the app, with no external page or link needed. This enables retailers to be more organised and get insights into every order in real-time. eCommerce brands can use WhatsApp, Email & SMS to automate order status communications during the entire shipping journey. With WareIQ Interact, online brands can engage customers in the following ways: Share consistent communications with their customers to build a brand their customers can trustAlleviate shipment-related anxiety & boost trust in the brand leading to repeat salesOpen new avenues for growth by cross-selling & up-sellingReduce the volume of NDR & RTO orders, leading to lower losses Customer Care We also offer customer care facilities so anytime a customer has a query or an unforeseen issue arises, our team of trained professionals will be there to get everything back on track as soon as possible. This provides assurance to you and your customers that you are backed by a dedicated team with multiple resources at their disposal to troubleshoot any problem that may arise. Shipping Notifications: FAQs What are the most common ways of sending shipping notifications?The most common platforms that are used to send shipping notifications are email, SMS and messaging apps like Whatsapp. Why is it important to send shipping notifications to customers?It is important to keep customers updated and informed about the status of their order, as they often get agitated if they don’t know where it is and assume that there is some issue or delay. It is paramount for retailers to provide reassurance to them. Is order status updated in real-time?Yes, order status is updated in real-time, as the order makes its way through the fulfillment cycle. Can there be errors in shipping notifications?Yes, if there is a technical glitch or an unforeseen delay arises and is not updated properly, the shipping notification can reflect a different result than what is happening on the ground. How can WareIQ help to limit any errors that might occur?WareIQ uses state-of-the-art technology to provide real-time updates at every stage of the fulfillment process and automatically tracks every element of the order constantly, until it reaches the customer.

June 28, 2022

Shopify Fulfillment: How to Fulfill Shopify Orders with WareIQ in 8 Easy Steps

Shopify Fulfillment: How to Fulfill Shopify Orders with WareIQ in 8 Easy Steps

The big challenge for an eCommerce retailer who wants to establish itself in a competitive online market such as India’s is to come up with a product that people want and need and to also be able to market that product so it is visible to the customer base it is meant to target. While most retailers are able to find solutions for these challenges, there is another big challenge that often doesn’t get the same recognition - How can they provide the best shipping experience to customers, at the lowest cost? The answer isn’t complicated because large companies like Shopify offers users integrations with other fulfillment platform that can help propel their order fulfillment and distribution process. There are a variety of options available and sellers will have to choose one depending on their product type, sales volumes, target market and budget. Integrating Shopify Fulfillment with WareIQ’s WMS offers advantages such as: Utilization of WareIQ's full stack fulfillment platformFull order tracking and return management facilitiesChoice of multiple courier partnersAdvanced ML-based algorithm that smartly assigns a courier partner based on priorityComplete integration with Shopify store & 20+ other online marketplaces & platformsSmart network design & inventory placementConsistently low shipping costs on all platformsSyncing of previous, current and future orders What is Shopify Fulfillment? Shopify Fulfillment is a service offered by Shopify Inc. that encompasses important eCommerce logistics fulfillment processes such as picking, packing, inventory management, shipping and distribution. Online retailers who choose to partner with the Shopify Fulfillment Network gain access to a global network of warehouses and fulfillment centers, where inventory is stored securely and the number of units are monitored until they are sold, after which, each order is packaged and distributed to the end customer and can be tracked using tracking software tailored for providing a seamless experience to customers. Shopify has created a central fulfillment platform that can be integrated with existing eCommerce fulfillment companies. Online retailers are able to send inventory to Shopify's 3PL fulfillment partners, who in turn take care of any orders that are received and thus, simplifies the entire fulfillment process for these retailers, who can focus on promotion and marketing their products to their target consumer base. Shopify Fulfillment verifies every fulfillment center in its network to ensure the provision of a standardised level of quality and efficiency. [contactus_lilgoodness] How Can You Fulfill Orders from Shopify? There are multiple steps involved in partnering with Shopify Fulfillment. The process begins with an application through your admin account, that lists out details about your store and fulfillment requirements and is then reviewed by Shopify Fulfillment.  Steps to Partner with Shopify Fulfillment Determining the products You should determine which products from your inventory will be fulfilled and distributed and get them approved by Shopify. Choosing product packaging You can consult with Shopify Fulfillment to determine how you want products to be packaged and if you require customised boxes, stickers, labelling etc. You can opt for free packaging provided by Shopify Fulfillment or choose branded shipping to send them your own brand-specific packaging. Determining inventory locations You can choose where and how much inventory you want to store at a specific location and get recommendations from Shopify Fulfillment to locate your products closer to your customers. Fulfilling orders through multiple channels When a customer makes a purchase from any of your Shopify Fulfillment platforms such as your website, Amazon, Instagram etc., Shopify Fulfillment will determine which fulfillment partner will have pick, pack and ship the order, based on convenience. Using the admin panel to gain insights You can use the admin panel to get insights into the demand of each type of product you offer and their inventory levels, so you can always be ahead of the curb and restock depleted inventory. A huge advantage that Shopify Fulfillment offers to its users is the simple and intuitive interface and lack of any complicated and tedious process to be followed. Insights and other indicators can be accessed directly from the admin panel, where any observations or changes to be made, can be accessed in one place. It may not offer the levels of customization that dedicated 3PL fulfillment companies offer but it does include all the information you would need, in order to make well-informed decisions. Fulfillment Services Handled by Shopify Fulfillment Receipt of shipments and storing inventoryPicking of orders in real-time, across multiple sales channelsPackaging of orders with standard packaging or customised packaging, depending on the order typeAutomating the delivery tracking process for both the retailer and customerManaging inventory by recommending the most efficient methods of allocating, supplying and re-stocking inventory, based on the volume and demandProcessing of returns and taking care of the exchange process by verifying the condition of goods and adding them back to the inventory count You can read our blog on reverse logistics and shipping aggregators to understand the importance of partnering with top 3PLs who provide these services. Benefits for Retailers to use 3PL Fulfillment Companies Instead of Shopify Fulfillment Multi-Channel Fulfillment By partnering with a 3PL fulfillment company, you open your business up to the possibility of fulfilling orders from multiple online selling platforms, in one centralised location. Orders and inventory levels are synced across each and a change made in one will instantly reflect on all. This aids in a more seamless experience compared to juggling multiple accounts and passwords. Cheaper and More Transparent Pricing Opting to use Shopify’s fulfillment services can be quite expensive and if you operate on a tight budget, it can be difficult to manage all the different costs associated with running an online company. However, 3PL retailers offer much more simple and transparent pricing, without reducing on any of the features or quality of their services. Custom Packaging Services Shopify has strict rules and regulations when it comes to packaging and orders are usually packaged with Shopify-specific packaging. While you need to not worry about the quality and security of your orders, it can take away valuable brand imaging from your company when a customer receives their order with Shopify packaging. 3PL fulfillment companies sort this out by providing multiple options to customize your packaging with different themes, materials and styles so that you can make sure your brand is at the front and center for every unboxing experience. Order Management Services 3PL companies usually have custom software to aid in the ease of use for order management, across multiple selling platforms, which is something that Shopify’s offering cannot do. Retailers can also get access to advanced order tracking facilities to mitigate any unwanted erros or delays. Inventory Management Services Most 3PL fulfillment companies offer highly advanced Warehouse Management Software (WMS) that assists in providing automated, efficient and standardised inventory management processes across all of their warehouses and fulfillment centers. This helps their customers better manage and forecast their inventory according to present and future demand. Nationwide Network of Fulfillment Centers 3PL companies offer a nationwide network of fulfillment centers and warehouses so that retailers can choose to store their inventory according to different factors such as areas of high demand, proximity to transport facilities, proximity to their manufacturing units etc. Ultra-Fast Shipping These days, 2-day, same-day and even 10 minute shipping have become the norm. Most 3PL companies offer a variety of different shipping methods and speeds, all at much lower prices than Shopify’s fulfillment service. You can hop on the bandwagon to ensure that your customers are never left waiting long periods of time to receive their orders. 8 Easy Steps to Integrate WareIQ's WMS with Shopify Retailers who opt to integrate WareIQ with Shopify will instantly get access to a host of facilities such as a nationwide network of fulfillment centers, consolidated order details in one place, choice of courier partners and integration with 20+ other online selling platforms. Integrating Shopify Fulfillment with WareIQ WMS can be done in 6 easy steps: Step 1: Go to WareIQ's WMS Dashboard and Click on the Hamburger Menu in the Top Left Corner Step 2: Click on the “Account Settings” Option Step 3: Click on the “Add Channels” Option Step 4: Select the “Shopify” Option as the Website Builder  Note: After selecting it, you will get the following popup: “You are required to enter your Shop Domain”. Select the “Yes” option to include tax in the item price. Unselect the “Create products Automatically” option and select the “Add Channel” option Step 5: Enter the Shop Domain of Shopify Account of Your Online Store in the “Shop Domain” Option Note: Please enter this in the “Shop Domain” field. You can open your Shopify account in another tab to easily copy the Shop Domain. Log in to Shopify.com using your registered email & password for Shopify. Once you log in, the URL is your Shopify domain. For example, in the image below, the selected portion in the URL is your Shop Domain - "wareiqtest" Step 6: Enter the Shop Domain in the “Shop Domain” Option After adding Shop Domain in the pop-up, select the “Yes” option to include tax in the item price. Unselect the “Create products Automatically” option and select the “Add Channel” option. Step 7: Install WareIQ App on Shopify After clicking on "Add Channel" in WareIQ WMS, click on the “Add Channel” option. You will be redirected to Shopify Log in using your Shopify admin credentials and click on "Install app" on Shopify Click on Apps in the left side navigation bar after you have logged into Shopify. You can see the list of all apps you have installed already Click on “Create an App” & you get a pop up to fill up App Name & App Developer’s email ID Fill up the App name as WareIQ & add the app developers ID to install WareIQ as one of the apps. Step 8: Select the Location to Integrate the Shopify Store Successfully Go to WareIQ's WMS again & select the required location and click on the “Submit” option You have successfully integrated Shopify with WareIQ WMS & are ready to fulfill orders on Shopify with WareIQ. Top 5 Fulfillment Companies for Fulfilling Orders on Shopify WareIQ Source WareIQ is a category defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistics costs but also your delivery timelines – this could be the game-changer your business needs!  WareIQ offers centralised tech platform for your entire eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages Deliverr Source Deliverr is an eCommerce fulfillment company that was founded in 2017 in the United States of America. They offer integrations with eCommerce marketplaces, such as Amazon, Walmart, Shopify, eBay market and many others. It offers 2-day delivery services and express delivery badges. It has a network of strategically placed warehousesIt offers a 2 day delivery service for 95% of shoppers in the USIt offers transparent and affordable pricing Amazon Multi-Channel Fulfillment (MCF)  Source Amazon Multi-Channel Fulfillment (MCF), is one of the many services that is offered by Amazon. It is a fulfillment service primarily targeted at brands that sell outside of the Amazon Marketplace. It offers varying shipping options in addition to the conventional same-day and 2-day delivery services. It offers an extensive fulfillment network that is built with Amazon’s comprehensive eCommerce infrastructureIt offers multiple delivery services, such as next-day and 2-day shippingIt offers simple and transparent pricing with competitive rates that are marginally more expensive than FBA FedEx Fulfillment Source FedEx Fulfillment is one of the many services offered by FedEx. It is a world-reknowned third-party logistics (3PL) services provider that offers storage, fulfillment status and order fulfillment services. They have a vast amount of experience and offer a global network of fulfillment centers and shipping facilities. It offers international shipping servicesIt consists of more than 600 facilities in the US and CanadaIt offers shipping for pre-ordered items that don’t need to be stored eFulfillment Service Source eFulfillment Service (EFS) is a fulfillment company that was founded in Michigan, in the United States of America. It primarily seeks to cater to small to mid-sized eCommerce retailers, as they don’t require order minimums or long-term contracts. It offers cross-docking capabilities for crowdfundersIt provides a 30 day test option for their servicesIt offers competitive and transparent pricing and doesn’t consist of any long term storage feesIt offers services such as is competitive product storage, order fulfillment, and returns handlingIt’s web-based software allows sellers to view inventory, check orders and shipments, and request additional services or support Conclusion: How can WareIQ’s Shopify Integration Help Your Business? There are many different aspects of an eCommerce business that contribute to the overall success in the online marketplace that it is competing. A major one is having access to a global fulfillment infrastructure and state-of-the-art technology.  Integrating your WareIQ fulfillment platform with Shopify Fulfillment gives you access to these facilities and much more. WareIQ is a best-in-class, full-stack technology fulfillment platform that assists its customers in stepping up their eCommerce services to their customers. From the complete fulfillment process to providing your customers with grade A experience, we are guaranteed to help your business offload your logistics requirements effortlessly, reduce costs, and increase overall customer satisfaction. WareIQ was established in 2019 and has emerged as one of the leading eCommerce fulfillment companies in India. Making use of our highly advanced technology platform, we offer a wide range of services that encompass any and every requirement that you have in terms of eCommerce order fulfillment. A few of the services that we offer are listed below: Nationwide Network of Fulfillment Centers We offer a pan-India network of warehouses, micro fulfillment centers and dark stores that enable users to choose which storage solution works best for their requirements. Additionally, we offer intelligent inventory-placement suggestions to store your products in fulfillment centers that are located in proximity to areas of high demand and transit hubs. Custom WMS We provide a custom Warehouse Management Software (WMS) that integrates with every major eCommerce marketplace. Users can track their inventory across multiple fulfillment centers and automate many warehouse management tasks to mitigate errors and increase speed and efficiency. App Store We offer an easy-to-use and well designed app store where users can choose from a variety of applications to boost productivity across departments, that can easily be downloaded and installed with the click of a button. Choice of Shipping Aggregators We have partnered with more than 20 of the most renowned courier services in the country and automatically assign the fastest and most cost-effective shipping service for each order so that orders will always be fulfilled in the shortest time while spending the least amount of money. [signup] Shopify Fulfillment: FAQs  What is fulfillment in Shopify?After your customer orders online, the ordered items are picked, packed, labelled and then delivered by Shopify and this entire process is known as Shopify fulfillment.  Does Shopify offer fulfillment?Yes. Infact, fulfillment services offered by Shopify are amongst the best. Shopify Fulfillment Network offers a dedicated network of fulfillment centers to retailers who run a Shopify store that offers timely deliveries, lower shipping costs and customer satisfaction.  What are the disadvantages of using Shopify fulfillment?The only service that Shopify fulfillment doesn't cover is multi-channel fulfillment. If Shopify sellers sell on other marketplaces as well, they would have to do it on their own or reach out to a 3PL fulfillment partner like WareIQ which offers a horizontal & full-stack OMS & WMS platform that integrates easily with 20+ marketplaces like Amazon, Flipkart, Myntra etc. & website builders like Shopify, Magneto, WooCommerce etc. How do I use a Shopify fulfillment center?This is quite easy. Firstly, you have to add the Shopify Fulfillment Network app to your app store or play store and choose which products you want Shopify to fulfill. You then need to share your inventory details with the relevant fulfillment centers and Shopify will take care of the rest. Does Shopify provide warehousing?Just like Amazon, Shopify also relies on a network of 3PL warehouse providers to carry out their plan with storage operations. WareIQ is one of those 3PL providers that offers a huge network of warehouses & fulfillment centers across India. Every Shopify seller can store their inventory in warehouses closest to their customers & offer the fastest delivery in 1-2 days. Does Shopify automatically fulfill orders?Yes, orders received at the store are fulfilled automatically.

June 28, 2022

Reorder Quantity Formula: A Detailed Guide Including Definition, Importance, and 3 Easy Steps to Calculate Reorder Quantity in 2022

Reorder Quantity Formula: A Detailed Guide Including Definition, Importance, and 3 Easy Steps to Calculate Reorder Quantity in 2022

The inventory of an eCommerce business is its most important asset and one of the most complex and crucial facets of operating an online store is inventory management. Additionally, it gets harder to keep track of stock levels with the more SKUs you have. Without effective inventory control, you can face situations such as overstocking products, which might expire or become outdated before you sell them and running out of stock and losing clients and sales opportunities. It takes the right balance to have the proper quantities of a product. The reorder quantity formula is used by eCommerce companies to calculate this. Generally, they use the economic order quantity (EOQ) formula to reduce the cost of transportation, warehousing space, stockouts and overstocks so that they can determine the ideal order amount. One of the best techniques to calculate the number of goods you need to purchase to maintain the proper stock levels is using the reorder quantity formula. Let us go into detail to understand what it entails. What Is Reorder Quantity? Reorder quantity is the total amount of units of a product that you seek from a manufacturer or supplier for an inventory replenishment purchase order. The precise number shouldn't be too high so that you have too much capital invested in inventory and subsequent increased storage costs but it also shouldn't be too low so that there isn't enough safety stock and you have the danger of running out of inventory before you can order the next batch. The ordered amount or number of units must be optimal while taking into account a variety of elements, including the cost of the order, the cost of transportation, the cost of transporting the order, etc. The reorder quantity strikes the best balance between a number of variables, including quantity discounts, freight, storage expenses and the need for working capital. [contactus_gynoveda] 3 Easy Steps to Calculate Reorder Quantity Using the Reorder Quantity Formula Determine Average Daily Usage Average daily use refers to the number of your product's units that are sold each day. Usually, thirty days is a common timeframe but it changes during different seasons or festivals. For instance, if you need to place an order for a product before a festival, your ADU should be determined using that festival’s ADU from the previous year. Determine Average Lead Time Average lead time refers to the time span between when a supplier receives a purchase order and when they deliver it to the seller's warehouse or fulfillment center. The average lead time is calculated in days. If you reordered inventory on 1st January, your average lead time is 30 days if it is available to be used to fulfill customer orders by 30th January. Calculate the Reorder Quantity You can determine how much inventory you need to reorder by multiplying average daily use (ADU) and average lead time (ALT). Let's have a look at how to determine the reorder amount for a specific product: -ADU is 25 -ALT is 30 days Your reorder quantity using the reorder quantity formula will be: =ADU X ALT =25 X 30 =750 Recalculating your reorder quantity frequently is advised, especially as your order volume rises and if you sell seasonal items. When the reorder level is determined properly, replenishment stock should arrive immediately before the number of units of the existing stock drops to zero. Why is the Reorder Quantity Formula Important? Helps to Avoid Stockouts Lost sales result from low inventory. Backorders and split shipments are always an option, but they don't provide a seamless consumer experience. Reorder quantity allows you to order just enough to fulfill orders until your next purchase, while reorder level allows you to secure a recovery in time before your inventory runs out. Assists in Minimizing Expenses Additionally, you should avoid overstocking your inventory which will ultimately block your capital. You will need to expand your warehousing storage capacity or opt for storing items in multiple warehouses if your stock levels are too high. By estimating reorder quantity, you will be able to maintain just the right amount of inventory which will result in lower storage costs, less wastage and fewer operational costs. Helps in Managing Inventory You can set up notifications in your inventory management system, allow live inventory tracking and manage changes in demand over time when you know precisely how much to reorder and when you need to replenish by using the reorder quantity formula to calculate the reorder quantity you need. Differences Between Reorder Quantity and Reorder Level Comparison Chart [table id=32 /] Example of Calculating Reorder Quantity To calculate your reorder level, multiply your average usage rate by the lead time for an inventory item. Be diligent while entering the time values you are using. If you are calculating average daily usage then put the lead time value in days. Suppose, Rajesh experiences an average daily sale of his items as 2500 units and the lead time for producing new units is 7 days, the re-order level will be: 2500 units x 7 days = 1,75,000 units.  When the inventory level of items is left at 1,75,000 units in stock, Rajesh needs to reorder and stock more units. By the lead time the additional units arrive in 7 days, the on-hand inventory balance may have reduced to zero. Conclusion: How Does WareIQ Help eCommerce Firms to determine Their Reorder Quantity Accurately? For an eCommerce business to be managed successfully, knowing how much inventory to repurchase is the most important question to answer. With the help of the reorder quantity formula, you know that your incoming and outbound logistical workflows are being improved by ordering the proper quantity of goods. With the help of WareIQ, eCommerce businesses can manage inventory, forecast demand, pack orders, lower shipping costs and fulfill customer expectations. We will optimize your data in real-time, automate your reordering quantity and move your inventory to relevant warehouses that are nearest to high-demand locations and transportation hubs if you choose us to store goods in our fulfillment centers. WareIQ helps brands improve their shipping strategy with a nationwide network of fulfillment facilities and technology that is integrated with the leading eCommerce platforms. Reorder Quantity Formula: FAQS How do you calculate optimal reorder quantity?The formula to calculate your optimal reorder quantity is:[{2 X (Annual Usage in Units X Setup Cost) / Annual Carrying Cost per Unit}^(1/2)] How do you calculate inventory to be reordered?The formula to calculate the reorder level of stock is:Reorder Level = Minimum Stock + Average Consumption During Normal Delivery Time What is the reorder level in inventory?The inventory level at which a company should place a buying order to top off its stock is determined by the reorder level formula. When the reorder level is determined properly, replenishment stock should arrive immediately when the amount of existing stock drops to zero. What is the reorder quantity?Reorder quantity, also known as the reorder point, is the quantity of an order to be placed for purchasing a specific item that needs to be restocked. It is based on the supplier's average replenishment period, the item's maximum usage during the replenishment interval and the need for safety stock.

June 27, 2022

What is Supply Chain Forecasting and Its Importance? What are Quantitative and Qualitative Forecasting Methods in Supply Chain?

What is Supply Chain Forecasting and Its Importance? What are Quantitative and Qualitative Forecasting Methods in Supply Chain?

Supply chain forecasting is essential for businesses that produce things for inventory. To avoid an overcapacity situation, manufacturers will use material forecasting to generate the quantity needed to satisfy their clients. The projection must also be accurate. Financial catastrophe may result from failure to maintain a precise prediction. Forecasts are created for a corporation's final items, parts, and service components. The production team uses the estimates to develop the quantities, safety stock levels, and purchase order triggers. Therefore, the prediction should be regularly evaluated by management. It must consider information about potential trends and the internal and external environments to provide a more accurate forecast. What is Supply Chain Forecasting? To assist you in making the right choices for your company, whether it be about stock inventories, cargo booking, budget planning, or entering new markets, supply chain forecasting integrates data from the historical supply with insights and understandings about demand. The majority of supply chain forecasting is comprised of supply analysis. It entails analyzing supplier data to determine when you should place orders for their goods, whether they are finished goods or raw components that will be assembled further along the supply chain. Understanding how much of your product your consumers desire during any particular week, monthly or quarterly, may be determined by analyzing demand. This is impacted by several predictable variables, like seasons and holidays, and others unforeseeable, such as world events and natural catastrophes. Without a grasp of the future, supply chain planning is all but impossible. So how does an online company go about supply chain forecasting to make more accurate forecasts and judgments, given that an eCommerce logistics supply chain has many moving parts? Businesses of all sizes may employ various supply chain forecasting techniques without hiring a psychic. There is undoubtedly a forecasting technique that suits your demands, depending on the size of your company, the items you offer, and how long you've been in operation. You will discover the significance of supply chain forecasting as well as the most popular qualitative and quantitative forecasting methods in supply chain in this article. [contactus_gynoveda] 8 Reasons Why Forecasting is Crucial in Supply Chain Management Anticipating demand, supply, and price within an industry is supply chain forecasting. To forecast the future of an enterprise, one must look at the competitors, gather information from suppliers, and examine historical trends. Therefore, a supply chain manager should be proficient in forecasting, which involves a variety of abilities that one should develop throughout their career. Various benefits are mentioned below. Planning Techniques Forecasting significantly enhances the scheduling and planning process. A supply chain may stay competitive by tracking historical and present product demand. Demand Seasonal Variations Being able to anticipate and prepare for seasonal fluctuations in demand is only one of the many reasons supply chain management needs forecasting. In a similar line, demand forecasting in supply chain is extremely helpful for organizing promotional activities and product debuts, which are both crucial. In addition, predictions supported by evidence need less guessing, which is a relief. Forecasting Product Demand In a more general sense, supply chain forecasting enables the prediction of product demand in even the most particular circumstances. But, of course, no business can accurately foresee the future. Still, a company may come as near as feasible by relying on trends and making judgments based on previous and present facts, and a company may come as close as possible. Customer Contentment In sectors that focus on products, the understanding client wants is crucial. Orders with short lead times will be delivered on time if it is possible to foresee client demand. Additionally, this will result in a rise in consumer and supplier trust. Lowering The Safety stock Safety stock is, by definition, extra inventory kept on hand as a backup in case a product's demand rises. However, with forecasting, no more precaution is required. This frees up storage space, reduces stress, and saves time. Reduce Stockouts of Inventory Demand forecasting in supply chain management is crucial for JIT (Just In Time) systems and purchasing from suppliers with long lead times. In JIT systems, demand forecasting enables products to sit in storage for a shorter time, resulting in less money being lost than if products were to occupy warehouse space for a prolonged time. In addition, demand forecasting in supply chain is necessary for suppliers with lengthy lead times so that you may receive your items on time. Enhance Shipping Every step of the supply chain forecasting process is impacted by supply and demand. For instance, supply chain managers will have more time to guarantee that there are enough workers on hand to ship a specific product if they can estimate the demand for a particular product. Conversely, orders are delayed if there are not enough employees to fulfil them. Similarly, having an excessive number of employees leads to high labour expenditures. Improved Pricing By using price forecasting, a corporation regains control. The effects of price changes on a specific supply chain segment can be anticipated and managed appropriately. Challenging Factors in Supply Chain Forecasting Supply chain forecasting planning might be complex for your company due to several issues. These consist of various factors as discussed below- Adapting the Regulations Most of us felt the COVID-19 pandemic's effects on modifying legislation in the previous year or two, mostly overnight. As a result, your short-term projections may have been thrown out the window, for instance, if you suddenly needed to place a sizable order to prepare for decreased shipment frequency because one of your leading suppliers was in an area that was placed under lockdown for a while. Returns of Goods Businesses having an online eCommerce presence have massive potential because of the continued rise in popularity of online purchasing. However, because of rules governing the acceptance of product returns, your sales data may frequently advise you to place orders for goods that will eventually return to your inventory. As a result, you are left with extra inventory. To minimize overordering, many organizations now incorporate returns projections into their supply chain forecasting by employing machine learning and other technology to anticipate a returns rate. Trends This week's hottest new product will probably be replaced by something else within a few days due to how we utilize social media nowadays. Due to this, forecasting future demand may be difficult, allowing you to walk a narrow line between sitting on mountains of extra stock and losing revenue because you couldn't keep up with demand from customers due to a shortage of inventory. Seasonality Many businesses continue to make substantial supply chain forecasting mistakes at these times, even if they know when seasonal sales will increase or decrease and have the sales history to support that knowledge. Unfortunately, you fall into this category if you have nothing on your shelves a week before Christmas or are still selling off clearance items in March! Lead Times Among the events that might abruptly cause lead times to lengthen and leave you with stockouts while you wait for things to stabilize are natural catastrophes, pandemics, armed conflict, and trade wars. Database Sets Many companies continue to maintain separate databases for their online and offline transactions. If this is you, merging data from several Excel spreadsheets will take a lot of effort. You may also face poor forecasting and understanding of demand since you are making orders based on insufficient data. Forecasting Methods in Supply Chain Management System Supply chain forecasting is a method for comparing expected future demand to actual past demand. Demand forecasting in the supply chain is used for financial, logistical, operational, and sales planning and decision-making in the future. Instead of concentrating on numerical numbers, businesses analyze and assess the opinion of experienced personnel by utilizing quantitative forecasting methods in the supply chain. These methodologies anticipate short-term or internal forecasting based on departmental heads' summative input. On the other hand, the quantitative forecasting method uses numerical data and focuses on projecting patterns based on previous company data. This forecasting technique is reliable and beneficial for the business's long-term scenario planning. While quantitative data in consumer surveys are utilized to reflect the sales prediction, expert opinion within the firm aids in predicting an organization's internal parameters. Moreover, due to its simplicity and cost-effectiveness, small businesses use qualitative forecasting methods in supply chain. On the other hand, large companies and lean manufacturing are adept at applying quantitative forecasting. How to Utilize Supply Forecasting Methods Forecasting is a dangerous endeavour in and of itself, and the forecaster has a part to play in deciding which technique of demand forecasting in supply chain is appropriate. However, each of these approaches has a clearly defined purpose. Thus it is essential to carefully consider which approach is best given the current economic climate. The situational context of the prediction, availability of historical data, expected level of accuracy, knowledge of the pillars of demand planning, and the forecast's assessed value concerning the business are all crucial when using this approach. Therefore, evaluating them using the given parameters is essential before selecting a technique. Similar to this, the product's life cycle should be considered. Is the item durable or perishable? Does it stay on the shelves, disappear from the market after being dispersed to the intermediaries, or become outdated? Is the product at its peak of development or growth? Again, having reliable data on these factors will make selecting the best forecasting technique easier. Business managers must collaborate with forecasters/demand planners for forecasting to be successful. This will make it easier to determine the forecast's objective, how it should be understood and applied to the current circumstances, and the tactics and strategy for preventive purposes. Quantitative and qualitative approaches are the two categories in supply chain forecasting methods- Qualitative Forecasting Methods in Supply Chain The subjective judgement used in the qualitative supply chain forecasting approach is based on the views of both consumers and industry professionals. When there is no historical data, this approach is used. Various qualitative methods in supply chain forecasting are as follows- Expert Judgement The opinions of subject-matter experts in the field are considered to produce accurate estimates. Since it is independent of statistical data, it may be carried out without quantifiable data. Using this simple, rapid procedure, the team often modifies the projection's outcome to match its expectations. Market Analysis A corporate organization may do market research to help with its sales prediction. The company's employees or a research organization contracted to handle it may carry out this strategy. In any case, market research may incorporate techniques like telephone, survey, or in-person interviews, as well as questionnaires. Focus Sessions This is a well-preferred technique for supply chain forecasting in qualitative forecasting methods. It entails an open-ended discussion with five to ten individuals representing a company's target market. A moderator often oversees the participants' turn-taking and asks questions on how they see the brand, goods, slogans, designs, and related ideas. Participants are anticipated to offer thoughtful replies that reflect the viewpoint of the target market. Focus group talks may include rewards, such as money or any similar gesture in the form of free goods. Historical Comparison This supply chain forecasting technique looks at the past sales of a product similar to the one sold now to project future sales. In addition, it may be used to forecast how a new product or line of items will perform on the market. This is accomplished by utilizing the historical data amassed over time from a comparable product created by the firm or a serious rival. Delphi Approach This supply chain forecasting technique uses an iterative function to integrate market orientation with the opinions of a small group of specialists. The outcomes of these iterated combinations aid in creating the following parallel intersections needed to find a precise forecast. However, the expert opinions are acquired separately to avoid the effect of a dominant personality's perspective if a group discussion technique were used. Instead, ideas are gathered, summarised, and presented to the same experts by an outside party. The circle keeps going until a meeting point is reached, and new questions may be added. For long-term forecasting, this approach has proven reliable and successful. Panel Agreement With this supply chain forecasting approach, a company firm's members from all levels collaborate to create its prediction. All participants are free to express themselves because it is an open procedure. However, there may be sentiments of intimidation and the suppression of opinions on the part of the former because it often comprises participants from the lowest level of the organizational hierarchy to superiors. For instance, a sales manager who truly comprehends the market would hesitate to disagree with the president and vice president’s statements. Ultimately, the panel consensus procedure might not be entirely transparent, equitable, and trustworthy. Quantitative Forecasting Methods in Supply Chain When historical data is available, the quantitative supply chain forecasting approach is used, and unlike the former, it is objective to the extent that the data are actual. Various methods are listed below. Average Movement This time series approach uses calculations to look at data points by constructing average series from different subsets of the whole data. A sequence of numbers and a predetermined subset size are used in the formula. By subtracting the first number from the series and adding the value that comes after it in the subset series, the forecaster alters the average of the formerly fixed subset. This statistical approach is typically used to cope with changes that last only briefly, including technical, financial data analysis and GDP evaluation. Explicit Smoothing  This straightforward supply chain forecasting approach quantifies various conclusions based on the user's preexisting hypotheses, including seasonality. Then, the future is forecasted using an algorithm that uses historical data. In contrast to several other smoothing techniques, it yields a simple conclusion without requiring a certain minimum quantity of observations. Analysis of Regression This refers to a class of forecasting techniques that rely on data from other factors (dependent and independent). It relies heavily on the user's ability to use the data generation procedure. There are two types of linear regressions: simple linear regressions, which compare an independent variable to a dependent variable, and multiple linear regressions, which compare two or more independent variables to a single dependent variable. Adaptive Smoothing Using this supply chain forecasting strategy, a business organization may input several factors to determine every possible outcome from a particular business action or decision. There are also variable and statistical data analyses involved. In businesses with ambiguous quantities, it is typical. Visual Techniques Although a statistical procedure is involved, it is straightforward and helpful for the sales projection. Using this technique, periodic sales data for different years may be visually represented using meeting points created by free-hand line drawing. The minimum is determined by the distance between the line and the facts on the graph. Modelling with Econometrics This has enhanced the regression analysis. It entails doing independent regression calculations using an equation, variables, and data. Meanwhile, economic theories are included in the statistical approach to ascertain how one economic variable affects another. Life-Cycle Analysis This supply chain forecasting technique examines and projects a new product's growth and development rates. The model combines data that various market segments have accepted or rejected, including creators, early and late adopters, early and late majority, etc. The outcome is what is utilized to forecast sales for a new product. Benefits of Demand Forecasting in Supply Chain Management Your operations and the kinds of historical data, if any, that are available will determine the types of forecasting methodologies, you apply. Several techniques may be used, including quantitative forecasting, trend forecasting, and qualitative forecasting. To receive the benefits listed below, you can include one approach or a variety of forecasting styles into your business strategy and objectives. Meeting Increased Product Demand You may plan to enhance manufacturing operations to meet strong demand and prevent eCommerce warehouses from running out of stock by forecasting client purchase habits. In addition, you can switch distribution methods to accommodate high demand so that shop shelves can stock items as you outperform the competition. You can choose which places to ramp up production to meet fulfillment centers standards when you have several manufacturing facilities spread out nationwide. This technique enables you to effectively control distribution and transportation costs and provides additional cost savings for your supply chain. Reducing Inventory Waste The production of surplus goods is one of the most significant and expensive issues supply chain forecasting networks encounter. Products occupy precious shelf and warehouse space as consumer demand declines. You can better manage your inventory levels via forecasting procedures. Surplus inventory demonstrates an uncontrolled supply chain forecasting management system. More than just essential resources are wasted, which causes wasting resources, labour, and money on production. When the old items become obsolete, you will eventually need to divert your efforts towards acquiring products from merchants or relocating things from various warehouses into other storage facilities. Streamlining Data Collection and Inventory Management Systems Other advantages of supply chain forecasting include collecting and exchanging real-time data for improved operations. Every supply chain forecasting department uses inventory management systems to gather, analyze, and share data to reduce forecasting mistakes and enhance logistical capabilities. For improved management procedures, you have greater visibility and transparency with your suppliers, manufacturers, distributors, and retailers along the supply chain. As a result, you can streamline operations for improved inventory management and reduce transportation delays. It's important to remember that every department may contribute to data collecting. This way, a  crucial database about client needs and wants can be compiled, enabling you to foresee future purchase trends and adjust your procedures accordingly. Further, it can boost client retention and generate more income. Conclusion Management can deal with the changing market with the use of forecasting. A corporate organization will be able to forecast global supply chain trends that can be controlled to make the market operate in their favour by using reliable historical data or expert views. There are two types of demand forecasting techniques: quantitative and qualitative. It should be highlighted that there are no rigid restrictions on using any forecasting techniques. It may, if necessary, be modified to suit a business firm's specific requirements. A firm may also use two or more forecasting techniques simultaneously. Reap Benefits With WareIQ’s Accurate Supply Chain Forecasting  Businesses may use WareIQ to gather real-time data to gain a detailed and comprehensive view of their inventory in real-time. Companies may use this to optimize inventory, lowering the risk of having too little or too much inventory. WareIQ has streamlined how firms manage their inventory, from tracking assets to giving real-time information regarding inventory conditions and locations. WareIQ supply chain forecasting advantages- Boost Inventory Control With WareIQ A lack of current data might cause inconsistent supply and demand. Improved forecasting accuracy can lead to better business results when real-time data is employed. Real-time stock visibility is provided by WareIQ sensors, which may also automatically initiate replenishment orders as necessary. Due to fewer stockouts, improved inventory levels, and cheaper transportation costs due to products being supplied only when necessary, revenues are enhanced. Solutions from WareIQ give companies real-time access to stock levels, enabling them to respond rapidly to changes in demand and ultimately generate more revenues. Maintain Your Businesses Stock Levels You are compelled to alter your production plans when your inventory levels are low or out of stock, which eventually reduces your manufacturing capacity and raises your expenses. However, keeping extra goods at your warehouse locks in the money and keeps you from investing in your company's more lucrative areas. You may save warehouse space and money on operations by using WareIQ's supply chain forecasting to determine the ideal stock levels. Plan production More Effectively With WareIQ One of the most excellent methods to maximize output is to use WareIQ’s fulfillment services platform to collect inventory data and sophisticated analytics to evaluate this data. As a result, you have the chance to accelerate your whole production cycle when you set up your operations based on the anticipated demand. Furthermore, by helping companies create realistic projections for each product line, manufacturers can optimize production planning and promote departmental collaboration with the aid of WareIQ. While external cooperation offers insights into purchase orders, recurring predictions, supplier details, etc., internal collaboration assures greater access to historical data and market insights. Improve Your Business Strategies With WareIQ Based on demand forecasting, businesses predict sales and allocate resources. For instance, a firm might raise production if they anticipate greater demand for a specific product. Demand forecasting in the supply chain also aids in risk reduction and improved financial judgement, boosting profit margins, cash flow, resource allocation, and expanding growth potential. In addition, businesses may lower their operational costs and total spending by using WareIQ to obtain better visibility into inventory accounting. As a result, all strategic and operational strategies may be built based on WareIQ supply chain forecasting. [signup] Supply Chain Forecasting FAQs(Frequently Asked Questions) How does forecasting affect supply chain management?To assist you in making the right choices for your company, whether it be about stock inventory, cargo booking, budget planning, or entering new markets, supply chain forecasting integrates data from the historical supply with insights and understandings about demand. Why is supply chain forecasting necessary?By using accurate forecasting, you can make sure you have an adequate supply on hand to meet demand. An inflated inventory and excessive cost are the results of overestimating demand. Many devoted customers won't obtain the things they seek if demand is underestimated. What are supply chain forecasting's aims and objectives?Supply chain management's overarching goals are to add value, develop a competitive infrastructure, take advantage of global logistics, synchronise supply and demand, and track success.

June 27, 2022

Inventory Report: Definition, Use Cases and 10 Different Types of Inventory Balance Sheets for eCommerce Businesses

Inventory Report: Definition, Use Cases and 10 Different Types of Inventory Balance Sheets for eCommerce Businesses

Inventory is one of the key aspects of any eCommerce enterprise. It is the means through which they can achieve their central goal - to sell products and generate enough revenue to offset all the expenses that were incurred in terms of research and development, production, marketing, logistics and operations and have enough left to be profitable. Therefore, managing inventory effectively and efficiently also becomes a central task for retailers. One of the main ways to do this is to maintain a systematic inventory report that summarizes important details about the current status of the available inventory. In this blog, we will go into detail about inventory reports, what their use cases are, how to create one and the different types that retailers can use. What is an Inventory Report? An inventory report, also called a stock audit report, provides a detailed look at the available inventory that a business has during a specified period of time. They can either be drafted physically or digitally and contains information regarding the number of products and units that a business can currently sell, inventory that is currently ordered or will be ordered in the future and inventory that is utilised for internal purposes. An inventory report generally needs to consist of up-to-date information and visual cues such as graphs and charts, to accurately represent the number of units of a particular item that are available in stock. This helps businesses ascertain the appropriate amount of inventory they require during a particular time period and helps in preventing overstocking and understocking situations from occurring. [contactus_lilgoodness] Use Cases of an Inventory Report Managing Inventory Inventory management is a major business operation that requires the use of an accurate and legible inventory report. For inventory management to be successful, businesses require access to data and facts that can help them make well-informed decisions, and this is provided by a stock audit report. It can help businesses determine their reorder point and prevent them from ordering fresh stock too early, which could hold up capital, heighten the risk of damaged products and requires additional storage space. Conversely, it also avoids situations where fresh stock is ordered too late, which results in items running out of stock and the inability to fulfill customer orders.  Tracking Inventory Across Fulfillment Centers Keeping track of the amount of inventory in storage is an important task for eCommerce businesses, especially ones that are expanding rapidly and have inventory stored in multiple fulfillment centers in various locations. This can seem like an insurmountable task but through the use of an inventory report, every unit of every product can be easily accounted for. Additionally, it can help to filter inventory by date, supplier it was ordered from and product type, among others and can identify products that are damaged and need to be replaced. Categorizing Inventory At the manufacturing plant, inventory needs to be segmented into categories based on their completion such as raw materials, works-in-progress and finished goods as each category has to be valued for accounting purposes. Once the goods are dispatched and have to be stored in fulfillment centers, it is up to retailers to store their inventory as per their requirements. For retailers who deal in large amounts of inventory, trying to locate a particular product in an unorganised heap of boxes can be disconcerting. Alternatively, locating products that are neatly labelled and organised based on a variety of factors such as demand, price, supplier or type can speed up the order fulfillment process and result in less wastage of time, effort and manpower. How to Create an Inventory Report in 4 Simple Steps? Shortlist Reporting Topics  Shortlisting the topics that need to be tracked and mentioned in the stock audit report depends on a variety of factors such as the goals of the business, the industry it operates in, the growth strategy it employs and the type of products it sells. Different key performance indicators (KPIs) can be used for different businesses with varying goals. Retailers need to identify the ones that are best suited to their business and can paint a clear picture of their inventory currently in stock and that needs to be ordered in the future. Frame a List of Items After coming up with a list of reporting topics, retailers need to frame a list of items which can either be exported from their inventory management system or POS system, or can be listed manually. The list of items generally needs to contain detailed information that is needed for each product such as the number of units that are currently available, different varieties if applicable, serial numbers, pricing and anything else that will help to identify it and provide the insight that is needed. Create a Time Frame Choosing a time frame is critical to frame an accurate inventory report. Keeping up to it is arguably just as important because if all the KPIs are not measured during the same time period, it can create a vast amount of disparities in the stock audit report, which will result in a flawed summary of information that can lead to misinformed business decisions. Companies with a growing volume of sales will need to constantly refresh the data in their inventory reports to account for fluctuations in variable KPIs that could lead to a change in results.  Automate Wherever You Can Companies can automate a wide range of inventory management processes by opting to use an advanced inventory management software, including the tracking of inventory by receiving real-time updates whenever inventory is purchased or sold, across multiple fulfillment centers and eCommerce marketplaces. This enables the use of more accurate and fool-proof data recording, which can be used while framing the inventory report, which helps firms make efficient decisions. Additionally, these software solutions also reduce the amount of time, effort and labour that is required to complete various important tasks. 10 Types of Inventory Balance Sheets to Scale Your Business Customer Analytics Report A customer analytics report is a type of stock audit report that tracks various customer-centric metrics such as the geographic location that has the most demand, which customers have placed repeat purchases, the income levels and spending patterns of a company’s target audience and much more. This helps retailers assess patterns in terms of customer demand and which supply chain solutions are successfully tackling that demand and which aren’t, through which they can determine what practices are generating more revenue, repeat and new customers, and enhancing customer satisfaction, as opposed to others so that the most successful ones can be permanently utilised to capitalize on the momentum.  Shipment Trends Report An inventory report that tracks trends in shipping, delivery and warehouse management is known as a shipping trends report. These reports provide insight into various factors that affect delivery speed and efficiency, customer satisfaction and warehouse performance. This allows retailers to streamline any process that is causing a delay or that is not performing up to the mark. It also assesses a shipping aggregator’s performance in comparison to other services that the retailer has used, allowing them to identify which service is providing faster and better operations. Purchase Order Report A purchase order report is a type of stock audit report that tracks KPIs relating to the purchase of inventory from a supplier or manufacturer such as pricing, rate of on-time delivery, transaction details and much more. This enables firms to assess the performance of their manufacturing partner and can suggest ways to improve certain aspects that may be delaying the shipment of inventory to the relevant fulfillment centers. Companies can also determine when they need to clear space for incoming inventory and how much space they will allocate to the new shipment. Cost of Goods Sold (COGS) Report Cost of Goods Sold (COGS) is the total amount of expenses incurred in the process of manufacturing, selling and delivering a product to the end customer. A COGS inventory report is needed to understand the collective costs that a business has spent on the sales and distribution of its inventory and how to reduce the expenditure on certain processes. It also aids in managing taxes, identifying areas that can help in scaling the business and determining if retailers need to spend more capital in their operations or inventory management. Sales Report A sales report is a stock audit report that provides vital information about a company’s sales, cash balance and an accounting summary for each selling channel such as discounts, incomes, taxes and refunds. This helps businesses in identifying their best-selling products, locations that have the highest number of sales, slow-moving items and various trends that will help them improve their sales processes to generate more revenue. Inventory Forecasting Report The primary goal of an inventory forecasting report is to attain the optimum inventory levels that are required to fulfill orders, based on product volumes that a company is expecting to sell in a specified duration. This estimation is done by analysing historical sales data, previous promotional campaigns and any other factor that affect supply and demand, in order to provide the most accurate depiction of the future inventory that is needed by a company.  Stock Levels Report A stock level inventory report provides insights into products based on their risk of running low on stock levels and the rate at which they need to be replenished. This helps firms in establishing which types of inventory sell faster and need to be restocked more often depending on the sales channel and the fulfillment center they are stored in. This data assists in optimizing inventory levels and mitigating storage and operational costs, as the accurate amount of inventory will always be kept, in order to fulfill demand. Inventory Value Report An inventory value report is a type of inventory report that summarizes inventory based on the value of each product. This provides a look into the total value of all of a company’s products, the volume that is stored across all warehouses and fulfillment centers and the performance of individual products, based on their value, lifecycle, storage duration and turnover ratio, which will help companies understand which items need to be handled with extra care and how long their shelf life will be. Inventory Profitability Report Companies generally track inventory profitability in 3 distinct phases - trending profitability, listing profitability and SKU profitability. Trending profitability is an inventory report that shows the consolidated profitability over a designated time period. Listing profitability is an inventory report that summarizes performance data per SKU, by gross and unit margins. Finally, an inventory report summarizing the SKU profitability of a company is considered to be the most important due to the ease with which profitability of each SKU can be monitored. Using an inventory profitability report, companies can become more cost-effective, limit the amount of deadstock they have and increase profits by selling better-performing products.  Inventory Performance Report An inventory performance report is a stock audit report that provides information specifically in regards to performance figures of a company such as the best-selling products, worst-selling products, yearly expansion and much more. Knowing which products are performing well and which aren’t can lead to firms customizing their product offerings by placing more focus on commodities that are generating the maximum profits for them and getting rid of items that are taking up space through sales or donations. They will also get a better idea of how the overall business is performing and can make changes and tweaks to the relevant processes. Conclusion: Which Solution is Right for You and How Can WareIQ Help? Inventory reports are a supremely important tool to keep eCommerce retailers informed about a plethora of different metrics that impact the performance of their inventory and business processes. As discussed above, there are many different types of stock audit reports and KPIs that companies can opt for but choosing the right one depends on the nature of the business and its products, the short-term and long-term goals that it envisions and the type of information that it wants to track and summarize. Once those details are figured out, it will be a much simpler process to shortlist the type of inventory reports that are needed. If you are an eCommerce retailer and need assistance with choosing the right inventory report or any other activity involved in eCommerce fulfillment, consider partnering with WareIQ. WareIQ is one the leading eCommerce fulfillment companies in India that provides a whole host of services, encompassing every aspect of the eCommerce fulfillment process. We provide assistance to more than 300 brands by enhancing their order fulfillment experience and delighting their customers. Some of the unique features we offer include: Custom WMS Our custom WMS grants users access to a variety of features such as automatic tracking of inventory, across fulfillment centers and eCommerce marketplaces, in real-time, intelligent inventory placement that provides suggestions for fulfillment center locations, based on areas of high demand and proximity to transport facilities, automation of multiple warehousing processes and much more. Choice of Shipping Aggregator We have partnered with more than 20 of the largest shipping services in the country and automatically assign the fastest and cheapest option for each individual order to enhance customer satisfaction, in addition to providing ultra-fast same-day and next-day delivery. App Store We have an intuitive and well-designed app store that allows users to download a variety of apps to enhance their productivity in different facets of eCommerce fulfillment and give them more power over their operations. No Minimum Order Requirements Unlike other 3PL fulfillment companies, we do not have any minimum order requirements for packages to be shipped. Additionally, we give users a choice of services they want to opt for and they pay only for the facilities they use which increases their profit margins and reduces their prices. RTO Shield Our custom RTO Shield employs methods to minimize RTO requests and prevents retailers from incurring RTO expenses through liability protection and insurance. Inventory Report: FAQs What information should an inventory report have?Whether it is physical or digital, an inventory report should general include information that gives an accurate representation of the total inventory available, best selling products, worst selling products, sales levels and more. What is the goal of an inventory report?An inventory report should summarize the amount of inventory that a company has in hand during a specific time period. This provides insights into how the business is performing and factors that need to be improved. Is an inventory report a part of inventory management?Yes, an inventory report is one of the factors that enables efficient inventory management decisions to be taken, using all the data that it provides. Can you use Excel to create an inventory report?Yes, inventory reports can be created in Excel. However, use it sparingly as many features are omitted and every entry will have to be done manually, which increases the scope of errors and increases the amount of time and effort needed. How can WareIQ help with inventory reporting?WareIQ has a custom WMS that automatically tracks various metrics of inventory in real-time and across multiple fulfillment centers and selling platforms and provides the data in a single centralised location.

June 25, 2022