5 Benefits of Inventory Insights

In the world of online ecommerce, getting your inventory strategy right can mean the difference between soaring success and crashing failure. Believe it or not, a big chunk of the headaches come from not having a good grip on your inventory data. It's all about knowing what you've got and where it is. When you're in the dark about your stock, you have to take shots in the dark, and unfortunately, you're bound to miss the target. 

The nasty side effects of not being on top of your inventory game can have pronounced effects across your whole business, with issues such as:

STOCKOUTS

Ever been hyped up to buy something online, only to find out it's out of stock? Yeah, it stings. Nearly 40% of shoppers have bailed on their orders because of this exact reason. Talk about a buzzkill.

HIGH RETURN RATES

Returns will haunt your bottom line. Merchants can even end up shelling out up to two-thirds of the price of an item just to deal with a return. It’s like getting a gift but having to pay the person to give it to you. Not cool.

POOR LABOR EFFICIENCY

Imagine trying to juggle a bunch of tasks without knowing what's coming your way. Chaos, right? Well, the same goes for businesses that can't predict their labor needs.

UNTARGETED SALES

Personalization is the name of the game in marketing these days. Brands that know their audience and can tailor their pitches to individual customers rake in a whopping 40% more cash.

NO COMPETITIVE ADVANTAGE

Ever feel like you're running in circles while everyone else zooms ahead? That's what it's like when you're not investing in the right tech to handle your inventory. Over half of the e-commerce folks out there are prioritizing getting their inventory game strong. It's like being in a race and realizing everyone else brought rocket boosters while you're still lacing up your sneakers.

In today's ecommerce jungle, where every brand, big or small, is clawing for the attention of a demanding customer, having top-notch inventory data and analytics is non-negotiable. You would not show up to a poker game without knowing how to play, would you? Sustainable growth is built through deep dives into your inventory data, analyzing it, and making swift moves.

But get this--despite living in the age of drones and self-driving cars, a whopping 53% of warehouses are still stuck in the Stone Age, relying on paper-based order-picking methods. It is like trying to win a Formula 1 race on a tricycle–it will definitely not cut it.

Now, if you're nodding along, thinking, "Alright, I need to level up my inventory game," fear not! You don't need the budget of a commercial giant like Target or Amazon to make it happen. As Mitch Millstein, the supply chain guru from the University of Missouri St. Louis, puts it, "Inventory visibility is the key to unlocking smarter decisions."

So, in this playbook, we're diving deep into why your inventory data is your golden ticket to business success, how to squeeze out those juicy insights, and most importantly, how to find the perfect inventory partner to turbocharge your operations. We are here to give you the cheat codes to level up your inventory management so that if you play your cards right, you can be a leader in your industry.

Let's get cracking!

Changing the Game with Inventory Insights

Simply counting what items you have on hand, unfortunately, does not cut it anymore. We live in a time where you can collect and track data in real time. There is no longer a need to wait around for hours between inventory updates to see what is actually on your shelves. Modern inventory software can now give you a bird’s eye view of what is in your warehouse right when you need it.   

Imagine this. You have incoming orders flying at you left, right, and center. With a good grip on your inventory data, you can dodge the bullet of overstocking or tweak your promotions before you crash into the dreaded stockout iceberg.

For many growing companies, their inventory data is like a puzzle scattered across a dozen different tables. Emails, spreadsheets, and departments each hold a piece of the puzzle, leading to a messy, chaotic inventory nightmare. Think overselling, shipping blunders, angry customers, and the horror of overstocking or understocking.

This lack of a whole inventory picture isn't just annoying. It's downright dangerous for your business's resilience. According to the folks at Gartner, a whopping 41% of consumer products companies are feeling the pain of not having the tech to shine a light on their inventory woes.

Now, picture this chaotic marketplace we're in–where customers demand lightning-fast shipping, labor is as scarce as a sunny day in December, and supply chains are as shaky as a game of Jenga after an earthquake. You're not going to survive in this space with outdated, scattered data and a reliance on good ol' spreadsheets.

Why Your Inventory Data Matters

In a perfect world, all of your incoming orders, inventory levels, and marketplace allocations are neatly organized in one central hub. Your personal mission control, where everyone in your team can tap into the power of data to level up their game. Having all that juicy data sitting pretty in one spot, you’d be able to unleash the magic of analytics to transform your entire operation. 

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Here's a sneak peek at just some of the ways you can drive value from your inventory data:

• Gain Deeper Insights: It's like putting on glasses for your business – suddenly, everything becomes clearer.
• Optimize Warehouse Operations: Say goodbye to chaos and hello to streamlined efficiency.
• Efficiently Managed Sales Channels: Like a maestro conducting an orchestra, harmonizing your sales efforts across all channels.
• Enhance Forecasting and Demand Planning: No more guessing games – you'll know exactly what your customers want before they do.
• Better Managed Supply Chain: Keep those gears turning smoothly with a well-oiled supply chain machine.

Insights. Insights. Insights.

Let's dive deeper into the treasure trove of insights waiting to be uncovered in your inventory data. 

It's time to customize your inventory management solution like a master craftsman, giving you the power to zoom in and analyze every little detail. Once you've got those insights locked and loaded, it's like having a secret weapon that'll skyrocket your revenue and profitability. You’ll be able to:

• Set Up Smart Reorder Points and say goodbye to the guesswork of when to restock. You can set up automatic reorder points for each SKU by analyzing sales velocity. It's like having a crystal ball that tells you exactly when to hit that "order more" button.
• Play Promotions Like a Pro with inventory thresholds. You can finally be the puppetmaster and control the flow of promotions with more accuracy. Whether you want to crank up the hype or pull the plug when things get too hot, you are in control.
• Determine Margins Like a Boss. Ever wondered which product characteristics bring home the bacon? With the right data, you can figure out if it is the cut, size, or color that's making it rain dollar bills.
• Stay Alert, Stay Ahead with real-time alerts. They are your best friend when it comes to keeping your finger on the pulse of your inventory. It's like having a personal assistant who taps you on the shoulder whenever something important happens.
• Call the Shots at Every Level whether you're making decisions for the entire catalog or down to the tiniest SKU. You've got the power to steer the ship in the right direction.
• Master Seasonality and More. From navigating seasonal peaks to tracking lots and serial numbers, you'll be a compliance ninja, minimizing risk and maximizing profits at every turn.

Increasing Warehouse Efficiency

The world of ecommerce is booming, and warehouses are feeling the heat like never before. As Mitch Millstein puts it, warehouses have become the beating heart of the supply chain, and with the explosion of online shopping, space is becoming a hot commodity faster than you can say "next-day delivery."

So, how do you tackle this warehouse beast? Well, if you haven't already jumped on the barcode labeling and scanning train, now's the time to hop aboard. Seriously, it's a game-changer. Just ask the folks over at MHI and Deloitte. They have seen pick and pack rates shoot up by 42% and labor productivity rise by 5% thanks to better scanning efficiency. That's like upgrading your warehouse from a horse-drawn carriage to a Ferrari–well maybe not that extreme. 

When you're on the hunt for inventory management software vendors, make sure you pick one that not only recommends scanners but also plays nice with your existing hardware. You don't want your shiny new software throwing a tantrum because it doesn't like your old scanners, right?

Once you've got the tools in place to gather all that sweet, sweet data, it's time to put it to work. 

Dive into the numbers, analyze inventory patterns, and sniff out those pesky bottlenecks that are slowing you down. With a bit of work, you'll uncover where your workflow is easygoing and where it could use some TLC.

But here's where the magic happens. Revamping your warehouse layout and design with digital wizardry can supercharge your efficiency by 20-25%. Imagine rearranging your widgets so that your best-selling SKU is just a hop, skip, and jump away from the packing and shipping areas. It's like rearranging your pantry so that the chocolate chip cookies are front and center–instant gratification!

And don't forget about your team. A top-notch inventory management system won't just gather dust in the corner. It'll help you bring those analytics to life, empowering your warehouse warriors to make lightning-fast decisions and keep those operations humming like a well-oiled machine. Keep in mind that a great inventory management system goes beyond collecting data by bringing to light these analytics about your warehouse team and operations. 

Mastering Sales Channels

Managing multiple sales channels is like walking a tightrope while juggling flaming torches and balancing a spinning plate on your head. Sound intimidating? You bet it is.

When selling across various channels, you must keep an eye on demand in each channel, track your warehouse inventory levels, and stay on top of incoming stock replenishments – all while trying to keep your cool.

When your data is as scattered as confetti at a parade, things can get messy really quickly. Dirty data is the enemy of efficiency, my friends. And trust me, your customers won't be impressed if their orders start showing up fashionably late to the party. Nearly half (45%) of online shoppers say they won't give a brand a second chance if their order arrives late. Ouch.

So, how do you keep all your sales channels in check without losing your mind? Enter the hero of the hour–your trusty inventory management system. With its magical analytics powers, it automatically syncs real-time inventory insights across all your selling channels. You can make more strategic moves with this kind of visibility into your stock levels and incoming shipments.

Need to pull an item from a marketplace to avoid overselling? Done. Want to know when to focus your efforts on a single channel? No problem.

Elevating Demand Planning & Forecasting

Gathering all your inventory data in one tidy spot is only the first step to becoming a forecasting wizard. And we are not just talking about what is sitting on your shelves. We are talking historical data, analyzing orders and demand trends, and everything in between. It’s like your own gold mine in your backyard. This information is essential for accurately forecasting demand and staying ahead of your customers.

Lucky for you, we live in the digital age. This means dealing with thousands of items from dozens of suppliers does not have to be a manual headache. Normally, this type of manual work results in spreadsheets littered with errors, making everyone’s day just a bit more complicated. As a matter of fact, research has shown that over 90% of manual spreadsheets contain errors. Talk about a nightmare! Avoiding these manual mishaps is why we strongly recommend inventory software that you can trust. Automation can be powerful, eliminating human error, and keeping data clean, reliable, and insightful.

Once you have all that juicy data at your fingertips, it is time to put it to work. By centralizing your order and inventory data, you have everything you need to analyze current demand, from products and channels to customers. At this point, is ecommerce even a challenge anymore?

All jokes aside, demand forecasting is not just about shipping products out the door. It is about understanding TRUE customer demand. Think about it: if a customer wants 100 of something, but you can only ship 20, they are taking their business elsewhere faster than you can say "missed opportunity." That is why it is crucial to align your historical data with what your customers actually want, not just what you have managed to ship out.

But, once you have cracked the code, the possibilities are endless. You can make data-driven decisions on inventory policy fast and efficiently. Whether beefing up your safety stock or keeping things lean with just-in-time inventory, you will always be able to solve problems from the context of your real inventory.

Better Supply Chain Management

Picture this: orders flying in left and right, supplier communications scattered across a sea of emails and portals. It is enough to make your head spin–hopefully, you do not get motion sickness.

The problem is that when your supply chain info is scattered to the wind, it is hard to see the big picture. When inventory decisions are made in a vacuum, it is like playing a game of telephone, but no one speaks the same language. Cue the bullwhip effect–panic ordering and a flood of excess inventory that will make your wallet cry. COVID really left a lot of the industry in shambles.

However, centralizing your inventory visibility is the magical cure-all. It is your way of shining a spotlight for everyone to see inventory operations. Suddenly, you can collect insights that will turbocharge your supply chain decisions. You can even use insights into materials availability to create bundles that keep your inventory moving like a well-oiled machine.

Not only will you appreciate the alleviated stress of not needing to check every possible communication channel for context, but suppliers love working with companies that know their stuff and are organized. Whether it is sharing forecasts, understanding lead times, or calculating reorder points, being a reliable partner pays off big time. And the same goes for collaborating with your customers. After all, happy customers mean more sales.

As Mitch Millstein puts it, inventory visibility isn't just about making your life easier–it's about making life easier for everyone in the supply chain. When you can collaborate better with your suppliers, the whole chain benefits. It's like a domino effect. Less inventory for everyone means more efficiency and less headache.

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The Perfect Inventory Partner

Now, let's talk about finding the perfect dance partner for your inventory journey. Whether you are a scrappy startup or a seasoned enterprise, having the right inventory partner by your side can make all the difference. It is like finding the Robin to your Batman. They have your back no matter what. Here is the thing, not all inventory partners are created equal. You need a partner that is just right for your size and needs. As Chris Hondl wisely puts it, “Having a partner that matches the size and capabilities of your company is key.”

For example, if you are a small ecommerce firm wearing multiple hats (and let's be real, who isn't?), a software platform built for big corporations with a team of supply chain gurus might be overkill. You need a partner that understands your unique challenges and can offer tailored solutions that fit like a glove. Because poor support is the stuff of nightmares for small and midsize businesses. Just ask Capterra–nearly 40% of small to midsize companies regret a tech purchase because of lackluster support. And when it comes to inventory software, buyer's remorse often stems from picking a one-size-fits-all solution that falls flat when faced with real-world challenges.

Instead, what you need is a partner who is flexible, adaptable, and ready to roll up their sleeves to tackle your toughest problems. Whether it's personalized advice or hands-on consulting, the right partner will be your trusted ally in the battle against inventory woes.

So aim for greatness when choosing the right software. Find someone who gets you, understands your needs, and is ready to go the extra mile to help you succeed. Because when it comes to inventory, having the right partner can mean the difference between sinking or soaring.

When tackling inventory challenges, it's all about going beyond the surface and diving deep into the heart of the matter. Quick fixes only delay the inevitable.

Picture this: you've got a question or a hiccup in your workflow. Instead of just slapping a band-aid on it and calling it a day, dig into all the surrounding factors, ask questions, and explore every nook and cranny to ensure you are not just fixing a symptom but solving the underlying issues too.

When you're on the hunt for an inventory software partner, you need someone who's got your back every step of the way. Whether it's forecasting, channel management, or fulfillment, they should help you squeeze every last drop of value from your data. It should also fit into your business like a puzzle piece, installing smoothly, absorbing historical data with ease, and playing nice with all your other essential software. It all should just click.

And don't just take their word for it, do your homework. Read reviews and feedback from businesses like yours to ensure you get the real deal. After all, it's not just about the software – it's about the people behind it too. You want a partner who's not just there to make a quick buck but genuinely invested in your success.

Benefits of Data-Driven Decisions 

Let's wrap this up with a bang and talk about the benefits of making data-driven inventory decisions. 

First off, let's talk about control. With inventory management software by your side, you are not just flying blind anymore – you have a centralized hub that empowers everyone in your company to do their jobs better. It's like giving everyone on your team a superpower – suddenly, they are faster, smarter, and more efficient than ever before. And with all that juicy data, you can start generating insights like a seasoned vet. And let me tell you, the payoff is huge. With results like:

• Increased accuracy
• Lowe labor costs
• Reduced overselling
• Increased efficiency 
• Successful forecasting
• Reduced returns
• Enhanced customer experiences

Imagine no more overselling, no more headaches, just smooth sailing and happy customers all around. And for small and medium-sized businesses looking to grow, finding the right software to wrangle their inventory can be daunting.

But fear not, you don’t need to break the bank to crack open your inventory insights. There are solutions out there tailored specifically for businesses like yours–like Genie. With dozens of customers and integrations, brands trust Genie to keep their inventory in check and their business operations running smoothly.