Inventory Management: Reducing Supply Costs

Inventory management is an important part of any business, as it helps to ensure that you have the right amount of stock on hand to meet customer demand.

It also helps to reduce supply costs, as you can avoid overstocking or understocking.

In this guide, we’ll look at how to get started with inventory management, the best practices for reducing supply costs, and some examples of successful inventory management.

Getting Started with Inventory Management

The first step in inventory management is to determine what items you need to stock.

This will depend on the type of business you have, as well as the demand for your products.

Once you have a list of items, you can start to track the quantity of each item in your inventory.

This can be done manually or with an inventory management system.

You should also consider the cost of each item, as this will help you to determine how much you should be stocking.

You should also consider the lead time for each item, as this will help you to plan ahead and ensure that you have the right amount of stock on hand when it’s needed.

How To Reduce Supply Costs

Once you have a good understanding of your inventory, you can start to look for ways to reduce supply costs.

Here are some tips for reducing supply costs:

• Negotiate better prices with suppliers.
• Reduce the amount of stock you keep on hand.
• Optimize your ordering process.
• Take advantage of bulk discounts.
• Reduce waste and spoilage.
• Implement just-in-time inventory management.

Tools to help you get started

• ShipBob — ShipBob is a global logistics platform that fulfills ecommerce orders for direct-to-consumer brands.
• Shopify — Everything you need to start, run and scale your business.
• HighJump Warehouse Management System — HighJump Warehouse Management System (WMS) is a comprehensive, end-to-end solution that helps you optimize your warehouse operations. It provides real-time visibility, control and automation of your entire warehouse, from receiving to shipping. It helps you reduce costs, improve accuracy and increase customer satisfaction.
• ChannelAdvisor — Streamline your e-commerce operations, expand to new channels and grow sales — all from a centralized platform.
• Epos Now — EPOS Now makes it easy to run, manage, and grow your business with our complete point-of-sale system.
• Invoice Ninja — Invoice Ninja is an online invoicing and time tracking software that helps small businesses get paid faster. It’s easy to use, secure, and free for up to 3 clients. Create invoices, track time, and accept payments online.
• Shipa Freight — Shipa is a cloud-native platform that helps businesses build, deploy, and manage applications in the cloud. It simplifies the process of creating, deploying, and managing applications, allowing businesses to focus on innovation.
• ShipHero — ShipHero is an inventory and order management platform that helps e-commerce businesses automate their operations and scale quickly. It offers features such as inventory tracking, order routing, shipping automation, and more.
• Sortly — The best inventory software for small businesses to stay on top of their inventory, assets, and more.
• OrderStorm — OrderStorm is an ecommerce platform that helps businesses create and manage their online stores. It offers features such as product management, order processing, payment processing, shipping, and more. It’s easy to use and provides powerful tools to help businesses succeed.
• Flexe — FLEXE delivers omnichannel logistics programs for eCommerce fulfillment, B2B distribution, & warehouse capacity to the world’s largest retailers and brands.
• Kinaxis RapidResponse — Kinaxis supply chain software revolutionizes planning and execution by delivering the agility to make fast, confident decisions for your integrated business planning and digital supply chain. Kinaxis provides end-to-end supply chain orchestration all on a single supply chain management platform.
• Manhattan Warehouse Management System — Manh’s Warehouse Management System (WMS) helps businesses optimize their warehouse operations. It provides real-time visibility into inventory, automates processes, and helps reduce costs and improve customer service. WMS helps businesses increase efficiency, accuracy, and productivity.
• SellerCloud — SellerCloud is a cloud-based ecommerce platform that helps businesses manage their online stores, inventory, orders, and more. It offers features like automated order processing, inventory management, and analytics to help businesses grow.
• SkuVault — With SkuVault’s eCommerce Inventory Management Software, you’ll sell faster, pick faster, and ship faster. Find out how.
• Revel POS — Revel Systems is a POS system that helps businesses streamline operations, increase sales, and provide a better customer experience. It offers features like inventory management, customer loyalty programs, and analytics to help businesses succeed.
• Fishbowl Inventory — Fishbowl’s inventory management and Manufacturing ERP system helps automate and scale your business with popular tool integrations.
• Deliverr — Deliverr accelerates your eCommerce sales with fast fulfillment and modern logistics solutions.
• NetSuite ERP — NetSuite ERP is the world’s most comprehensive cloud-based business management software, designed to help businesses of all sizes streamline operations, improve customer service, and increase profitability. It offers real-time visibility, scalability, and flexibility.
• OrderWise — OrderWise is an all-in-one business management software that helps companies streamline operations, increase efficiency, and improve customer service. It offers features such as inventory management, order processing, CRM, eCommerce, and more.
• Floship — Floship is a global ecommerce fulfillment provider that helps businesses of all sizes to optimize their shipping and logistics operations. They offer a range of services, from order fulfillment to warehousing and shipping, to ensure fast, reliable delivery of products to customers.
• E2open — Supply chain software with a connected network and SaaS platform help you seize opportunities, predict disruptions, and drive efficiency and sustainability.
• JDA Warehouse Management System — JDA Warehouse Management System (WMS) helps companies optimize their warehouse operations, reduce costs, and improve customer service. It provides real-time visibility, automation, and control of inventory, labor, and processes. WMS helps companies increase efficiency and accuracy, reduce costs, and improve customer service.
• Ordoro — Our all-in-one platform helps growing merchants run their online businesses. Optimize your fulfillment workflows with our bulk shipping label creation, omnichannel inventory management, automated dropshipping, and more.
• SalesWarp — SalesWarp offers a distributed order management system for retailers of all sizes to meet current and future customer demands, while optimizing operations
• Orderhive — Simple and Powerful Multichannel Inventory management software to help you track orders, control inventory, create shipments,raise purchases and much more.
• SAP Ariba — Ariba Purchase Order Management helps companies streamline their procurement process, reduce costs, and increase visibility into their spend. It automates the entire purchase order process, from requisition to payment, to ensure accuracy and compliance.
• Finale Inventory —
• Vend Point of Sale — Vend is a cloud-based point of sale system that helps retailers manage their stores, track sales, and grow their business. It offers features like inventory management, customer loyalty, and analytics to help retailers succeed.
• ShipMonk — Ecommerce fulfillment for high-growth brands. ShipMonk helps your brand unlock scalable growth with our powerful 3PL software and fulfillment centers.

Best Practices for Inventory Management

In addition to reducing supply costs, there are some best practices that you should follow when managing your inventory.

Here are some tips for successful inventory management:

• Track inventory levels regularly.
• Set up an inventory management system.
• Analyze inventory data to identify trends.
• Set up safety stock levels.
• Review inventory levels regularly.
• Implement a reorder point system.

Examples of Successful Inventory Management

To get an idea of how successful inventory management can be, here are some examples of businesses that have implemented successful inventory management strategies:

• Amazon: Amazon has implemented an automated inventory management system that tracks inventory levels in real-time and adjusts stock levels accordingly.
• Walmart: Walmart has implemented a just-in-time inventory management system that helps to reduce costs and ensure that stock levels are always accurate.
• Apple: Apple has implemented a sophisticated inventory management system that helps to ensure that products are always in stock and that customers can get the products they need when they need them.