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• Prepare for Prime Day with these proven inventory control techniques

• 4 common inventory problems and how to solve them

• Optimize your inventory management process with these 4 tools

With less than a week before Amazon Prime Day 2023, your deals should be more than ready to lure in as many customers as possible.

But is your inventory ready for your target sales?

If you're still looking for ways to optimize your stocking strategy, tonight’s stash is your answer. Know the clever hacks and tools you can use to prepare your store for the upcoming sales frenzy.

BIG IDEA

Prepare for Prime Day with these proven inventory control techniques  

Amazon selling is more than just listing and sending products to customers. A lot of things that are equally crucial, if not more, happen behind the scenes.

For instance, there's inventory management (IM), which is the process of managing your stocks to ensure you can fulfill all orders. Shopify explained what IM is and how important it is to your business success.

📉 IM is for inefficiency minimization

You can't decide on the optimal quantity, storage location, and timing for replenishing inventory overnight. They're something you learn over time by trial and error.

IM's main goal is to minimize costs while maintaining sufficient stock levels. It helps you avoid:

• spoilage (for perishables);

• dead stock and inefficient cash flow;

• high storage costs;

• and, most importantly, canceled orders.

🔵 Types of IM

There's no absolute “best” IM practice. It varies from business to business, so it's important to know the types of IM to match your needs.

• Retail IM is about efficiently handling the stocks you sell to customers. The goal is to have enough inventory to cover demand and avoid those pesky logistics costs incurred by slow-moving or non-moving items.

• Multi-location IM is more complex. From the name itself, it requires managing inventory at different storage locations to ensure stock availability. If you have multiple warehouses or sales channels, you must maintain accurate and centralized inventory records to avoid delivery and decision-making conflicts.

🔑 Inventory control is the key

Again, it's not something you can learn in a jiffy. But it won't hurt to start early with some proven and tested inventory control techniques:

• Use Six Sigma. More like a principle than a method, Six Sigma is widely used to reduce excess inventory. Edwin Garro, founder of PXS School of Excellence, recommends the use of DMAIC, a five-step problem-solving process based on this principle.

  • Define the problem you intend to tackle.

  • Measure your current inventory level.

  • Analyze the underlying reasons for any existing issues and develop your strategy to eliminate them.

  • Execute your IM plan by conducting tests to assess its effectiveness in resolving the issue.

  • Control the new process.

• Set par levels. This simply means setting the minimum quantity of products in your inventory. This helps you determine your reorder quantity and schedule.

• Follow the first in, first out (FIFO) principle. The oldest stocks are sold first. By using FIFO, you can reduce the risk of spoilage, work around expiration dates, and improve your inventory rotation.

• Make contingency plans. Whether you like it or not, you’re bound to face problems in your business. The best way to beat them—expect the worst and strategize how to solve it. This would prepare you even for the most unexpected challenges.

👌 Mastery is the best policy

It's not easy finding the best IM strategy for your business. But with experience and data on hand, you can master the control of your inventory and supply chain processes.

BITES OF THE WEEK:

• Inventory management is a crucial part of your Amazon business. So you’ve got to get all the tips you can get for doing it right, especially with Amazon Prime Day happening next week. - Amazon Seller University

• Looking to streamline your logistics operations? Well good news—Amazon Prep Services can take storage and shipping tasks off your hands! - RS Web Solutions

• Looks like Amazon’s determined to make AI a part of its core systems. From using AI to summarize reviews, the company now utilizes the tech to make delivery faster. - PYMNTS 

• Increasing fulfillment fees, slow-moving inventory, and inefficient supply chain—are some of the modern inventory management troubles you may face. You better be ready for them if you want to thrive on Amazon. - Supply & Demand Chain Executive

TRENDING TOPIC

4 common inventory problems and how to solve them

Managing inventory can be challenging for everyone. That’s for small retailers and large-scale manufacturers alike. No exemptions. But as we said earlier, the key is anticipating the problems to build an effective, targeted plan.

Kapture shared some of the most common challenges businesses face with inventory management. And fortunately, the solutions to overcome them.

🛍️ Outdated products

It’s one of the most common inventory issues, especially for those who sell seasonal items. Every unsold product on your shelf can lead to significant losses. Not to mention the space they occupy, which you could have used for new units.

Solution: Use an IM platform. This would help you monitor and clear old stocks. Another way is to run discount deals on them to trigger sales. Hello, Prime Day! 👋

🚰 Overstocking

This is another common problem that’s usually caused by overestimated demand. If you keep adding new stock without disposing of the older ones, it will eventually cut your profit margins.

Solution: Revamp your forecasting method. You can recalculate your spreadsheet formula, but we don’t recommend this one for accuracy reasons. Instead, we’d go for the use of demand planning and forecasting software.

📈 Data inaccuracy

In most cases, this issue exists in manual processes. They’re dated and prone to mistakes and inaccuracies. One wrong record can lead to a domino effect that may hurt your efficiency and profitability.

Solution: Automate. Embrace technology. Use modern inventory tracking tools, such as barcodes and QR codes). If you don’t have the resources, you can always try free IM systems.

🥊 Tighter competition

As the competition becomes fiercer, demand levels increase. This forces businesses to expand their logistics network beyond what they can manage. Their resources are stretched out, causing some inefficiencies in managing stocks.

Solution: Prioritize productivity. Fix the business’ internal workflow first. You can use productivity tools to optimize your processes and prep for the competition.

🧐 But, there’s a bigger problem…

Some sellers can forecast demands but fail to adjust their inventory in time. This shows a lack of awareness and understanding of the importance of proactive IM.

So if you want to effectively face the challenges above, you must prepare ahead of time. Know your priorities and use all resources you can get to store your goods in the right place at the right time.

ACTIONABLE ADVICE

Optimize your inventory management process with these 4 tools

While being proactive can keep you on top of inventory challenges, it’s not enough to optimize your inventory operations in the long run. You’d need powerful IM tools in your arsenal.

We’re not talking about old-fashioned spreadsheets. SellerApp listed some of the most advanced IM software and tools you can use instead.

🧰 4 tools for inventory optimization

But first, a disclaimer: these tools can effectively streamline supply chain workflows. Still, you must check their compatibility with your business model to make sure they’ll work their magic. 🪄 

1. SellerApp

Its profit dashboard is a gold mine of inventory data. Aside from giving you an overview of your stock levels, it allows you to sort them by status and fulfillment method to manage them more efficiently. 📊

We absolutely love that SellerApp shows your sourcing or manufacturing costs to let you know if it’s time to find new suppliers! How cool is that?

2. Extensiv Order Manager

Formerly known as Skubana, this software is the new best friend of multi-channel sellers. 🤝 It allows data integration from multiple e-commerce platforms (including Amazon, Walmart, and Shopify) for easier inventory overview. Plus, it has automation tools that smoothen out fulfillment workflows.

3. SoStocked

If you like tools you can customize to your needs and preferences, this one’s perfect for you! SoStocked allows you to adjust dashboards according to your KPIs. It also has a forecasting feature that considers seasonality and sales history to guide your stocking strategy.

4. Linnworks

Like Order Manager, Linnworks has integration features for those selling on multiple platforms. It supports centralized IM through its automation features, including real-time analytics and stock forecasting.

What’s more, it has a warehouse management solution that can fulfill orders for you. 📦

🧾 Feel free to choose a tool that best suits your business needs! If you already have a go-to IM tool, feel free to share it with us by replying to this email.