As an eCommerce business, you know that having a good inventory management system is essential to staying organized and profitable.
Manually tracking orders and shipments can be expensive and inefficient, so it’s important to stay current on the latest technology and trends.
That’s why we’re exploring how wholesale inventory management works for eCommerce stores in 2023.
With these best practices under your belt, you’ll be able to confidently oversee all facets of your online retail business.
Let’s dive in.
What Is Wholesale Inventory Management?
Wholesale Inventory Management (WIM) is a field that deals with the efficient tracking, purchasing, and distribution of wholesale inventory. It involves warehouse management, purchase orders to wholesalers, tracking of wholesale purchase orders themselves, tracking inventory levels, and scheduling employees.
Retailers purchase wholesale inventory and then sell it in order to make a profit.
WIM is an important element of running a successful wholesale business and involves tracking product costs, maintaining sufficient inventory levels, and managing warehouses.
Having accurate data helps increase efficiency by reducing stockouts and minimizing any other issues that could arise from inaccurate records.
WIM not only tracks incoming wholesale products but also helps ensure consistency in pricing, minimize losses due to exposure and spoilage, and streamline processes for faster order fulfillment.
How Wholesale Inventory Management Works For eCommerce Stores
Managing inventory for a wholesale business can be complex and time consuming.
However, inventory management systems, like SkuVault, enable eCommerce stores to streamline the process and sell to their customers more efficiently.
These provide in-depth insight into inventory levels and enable stores to properly manage stock for their customers’ orders.
Through this process, stores are able to monitor sales trends, predict customers’ demand, reduce the cost of employees, and order inventory from wholesalers to ensure demand is met.
Without an inventory management system, you risk inventory shortages or over-purchasing, which can affect cash flow.
Benefits of Wholesale Inventory Management
Wholesale inventory management (WIM) is an invaluable tool for companies that need to manage large, complex inventories.
With its comprehensive suite of features, inventory management software offers a variety of benefits to wholesalers and retailers alike:
Improved visibility into wholesale inventory levels
WIM solutions provide detailed, real-time information about the availability of items, ensuring wholesalers can make informed decisions about when to sell or order new merchandise.
Enhanced accuracy in order fulfillment
By automating manual procedures, WIM software minimizes errors and provides an efficient framework for managing orders as well as tracking deliveries.
Reduced labor costs
You can also eliminate manual tracking and data entry – and reduce labor costs significantly – by automating wholesale inventory management.
Automated wholesale price updates
Regularly updating pricing information from vendors helps ensure you always get the best deals and remain competitive.
Streamlined replenishment and purchasing processes
With automated ordering and inventory management, you can reduce costs by streamlining the process of placing orders, replenishing merchandise, and managing suppliers.
The benefits of wholesale inventory management are clear: improved visibility and accuracy, reduced labor costs, and streamlined procedures that boost productivity.
Key Features of Wholesale Inventory Management for eCommerce Stores
Wholesale inventory management helps ecommerce stores track merchandise, sales trends, and future customer purchases all in one place.
The key features include:
Stock control enables businesses to accurately account for stock levels and ensure there is always enough product to meet demand. It also helps identify any discrepancies and adjust orders accordingly.
Purchasing / Reordering system
A purchasing or reordering system keeps merchandise levels stable by automatically reordering merchandise once it reaches a certain level. It can also keep track of goods from different suppliers and ensure stock levels are optimal.
Inventory reports provide businesses with an overview report of merchandise and sales data. This helps companies to track inventory movements in real time and identify where shortages may occur.
Automated price changes
Automated price changes automatically adjust prices so you remain competitive in the market. Adjusting prices ensures merchandise is sold quickly and at the best price.
Wholesale inventory management is integral for any top manufacturer, retailer, or eCommerce store – helping maintain accurate inventory levels, reordering, and pricing.
With this software, businesses can maximize sales and profits while minimizing the risk of product shortages.
Best Practices for Wholesale Inventory Management
Having a good handle on your wholesale inventory is essential to keep up with customer demand and avoid costly mistakes.
Here are seven best practices to help you manage your inventory:
1. Prioritize data accuracy and integrity
Accurate data is the foundation of a successful inventory process.
Be sure to regularly track, record, and review your stock levels so there are no surprises when it comes time to reorder.
2. Invest in quality inventory management software
Top-tier inventory management software can make managing your company’s inventory much easier and more efficient.
Look for software that can improve productivity with detailed reporting, analysis, forecasting, and automated reordering.
3. Use inventory forecasting
Forecasting helps business owners anticipate future customer demand and plan for future business needs. This data can help you stock up on items that’ll be in demand and reduce orders for items that are slow moving.
4. Implement clear procedures for reordering wholesale stock
Establishing a reliable program for tracking and restocking inventory can help ensure your productivity, business continuity, and save you from costly mistakes. Make sure to review your business’s current practices on a regular basis to make sure they are still effective.
5. Consider location
Knowing where your supplier is located and having a comprehensive understanding of their shipping capabilities is invaluable in forecasting when supplies need to be restocked. This can give you the edge in providing timely delivery of products to customers.
6. Factor in your industry
Consider industries when managing inventory. Different industries require different types of supplies, and the availability of those supplies can vary significantly from one season to another, depending on a variety of factors, including fuel costs, availability of raw materials, and the state of the economy.
7. Consider the cost
Finally, it is important to factor in the cost of managing your wholesale inventory. When dealing with distributors with large inventories, costs such as storage and transport can add up quickly. That’s why it is important to have a clear understanding of your suppliers’ pricing structures and what discounts you can expect to keep your cost levels in check.
By following these best practices, wholesaler business owners can keep their inventory under control and ensure they are meeting the needs of their retailers and distributors. With an effective inventory management structure in place, business owners can automate much of their inventory management and rest assured that their business is running smoothly and efficiently.
In short, WIM is an invaluable tool for any wholesaler looking to sell more efficiently and effectively.
Knowing the benefits, features, and best practices of an effective WIM system helps ensure your business is meeting its operational goals.
The most successful retailers are those that are able to provide the best customer experience while smoothly syncing all their operations into one cohesive system.
As technology continues to evolve, it’s critical to stay informed about the latest inventory management tools, so you can streamline your process, maximize profits, and keep your customers happy.