Shopify e-commerce websites can take two different approaches with regard to the management of their inventory. They can assume it is a necessary part of Shopify eCommerce and adjust their inventory based on cash, resources and a gut feeling. Or they can make strategic decisions by working with Intuendi Shopify Inventory management app and put an active inventory management process in place and continually improve the business results.
Everyone knows that following the active inventory management strategy and working with Intuendi helps create world-class lean inventory for your Shopify eCommerce store. At Intuendi we help work with our Shopify clients to understand and view that inventory should is very similar to cash that could have been spent in other ways such as marketing, PR and generally growing the business. So anything above what the customer needs is waste of your cash and resources. So we have outlined some steps not to be avoid when comes to moving your Shopify eCommerce store to lean and active inventory management.
Understand and characterise your demand
Inventory shortages or excess is the result of supply being out of sync with demand. With a better understanding of demand, supply can be more closely aligned with it. So understanding your demand is always the first step.
Develop a process to track and analyse high deviations
Nothing goes as planned. Get ready to drill into these issues. When high deviations occur, a cause analysis will assist in discovering the business policy misalignments, performance issues, and malfunctioning processes.
Characterize your supply and inventory costs
Sporadic emotion based ordering is more likely the cause of high inventory than most companies are willing to admit. Attack this by giving accurate and effective tools like Intuendi.
So if you have a Shopify eCommerce website, learn more about Intuendi today and take the first step to lean inventory management.