Category Archives: Inventory Management

Navigating the complex world of inventory management can be daunting, especially for small business owners, warehouse managers, and retailers. In an era where efficient supply chain and fulfillment operations are critical, understanding the FIFO method—First-In, First-Out—can make a significant difference. This guide aims to shed light on how businesses, particularly those dealing with perishable goods, can benefit from this tried-and-true inventory management technique. What Is the FIFO Method? The FIFO inventory method, or First-In, First-Out, is an approach where the first items added to inventory are the first ones to be used or sold. This logical flow ensures that older...

In the fast-paced world of e-commerce, having an efficient inventory management strategy can be the difference between thriving and struggling. One key approach that can make a significant impact is just-in-case (JIC) inventory. In this post, we'll explore what JIC inventory is, its benefits, and how partnering with a third-party logistics (3PL) provider can help manage it effectively for your e-commerce business. What Is Just-in-Case Inventory? Just-in-case (JIC) inventory is a strategy where businesses maintain higher levels of stock than immediately needed to protect against unforeseen circumstances. This buffer stock ensures that companies can meet unexpected surges in demand, avoid...

Have you ever felt overwhelmed by the sudden surge of orders during the holiday season? You're not alone. According to a survey by the National Retail Federation, holiday retail sales in the U.S. account for nearly 20% of annual retail sales. This surge in demand within a short period creates significant challenges for e-commerce businesses. But don't worry—this blog aims to help you manage these seasonal demand fluctuations effectively. What Is Seasonal Demand? Seasonal demand refers to the fluctuating order volumes that occur throughout the year due to various factors like holidays, weather changes, and trends. Understanding these patterns is...

Inventory management poses significant challenges for small business owners. Maintaining the delicate balance between having enough stock to meet customer demands and minimizing excess inventory can be daunting. Enter the perpetual inventory system (PIS)—a game-changer that offers real-time inventory tracking and enhanced accuracy. This blog post will look into what a perpetual inventory system is, how it works, and why it might be the perfect solution for your business needs. What Is a Perpetual Inventory System? A perpetual inventory system is an inventory management technique that continuously updates inventory records to reflect real-time changes in stock levels. Unlike periodic inventory...

In the complex world of inventory management, dead stock represents a critical yet often overlooked challenge that businesses face. It not only occupies precious warehouse space but it also ties up capital that could otherwise be invested in more profitable ventures. This blog post dives deep into the concept of dead stock, its significant impact on businesses, and offers strategic insights on minimizing its occurrence. What Is Dead Stock? Dead stock refers to items that have never been sold or used by a business due to becoming outdated, damaged, or overstocked, and are unlikely to be sold in the future....

Do you ever wish there was a foolproof way to keep your inventory at optimal levels without having to constantly monitor it? As an e-commerce business owner or manager, you know all too well the importance of inventory control. Overstocking can lead to lost potential profit and stocking out can negatively affect customer relationships. In this blog post, we’ll discuss how you can strike the right balance between preventing stockouts and overstocking so that you get the most out of your online store's inventory! Understanding Stockouts and Overstocking Imagine walking into your favorite store and not finding the item you...

If you're an online business owner, then you know the importance of managing your inventory. One element that can have a big impact on how well you manage your stock is knowing about minimum order quantity (MOQ). Knowing what MOQs are and understanding how to properly use them for your business can prevent potential losses in profits caused by excess or understocked inventories. Below, we’ve put together the ultimate guide on everything you need to know about MOQ for e-commerce businesses. What Is Minimum Order Quantity (MOQ)? Minimum order quantity (MOQ) is the lowest amount of a product that a...

Are you attempting to keep up with inventory levels in your business, but not quite sure where to start? If so, you’re not alone! Businesses in the e-commerce industry need a system for tracking inventory—and physical inventory counts can certainly help. In this post, we'll explore what a physical inventory count is, why it's important for businesses like yours, and how to successfully execute them What Is a Physical Inventory Count? A physical inventory count might sound pretty daunting, but in reality, it's just a fancy term for counting up all the products and goods your business has on hand....

Inventory days on hand is one of the most important metrics that a business can track. It is used to measure the number of days it would take to sell all of the inventory currently on hand. This metric is used to help businesses manage their inventory levels and keep inventories lean. In this post, we will explain why it is important and how to calculate it. Why Does Inventory Days on Hand Matter? As mentioned, inventory days on hand is a measure of how long it would take a company to sell through all of its inventory given the...

With production uncertain during this unprecedented global pandemic, one of the best things your e-commerce business can do is to improve its inventory management. By equipping yourself with a streamlined and improved inventory management system, you’ll be better suited to handle the uncertainties in production chains that now plague businesses of all types and sizes. The good news is that you don’t need a ton of capital or resources to improve your real-time inventory management. With the addition of strong inventory management software and a few improvements made to your process, you can begin to see immediate benefits. That in...