Effectively managing inventory is crucial to your customers’ experience; the only thing worse than not having a product in stock for customers to order is discovering you don’t have it in stock after they’ve ordered it. It’s equally crucial to your back office operations, since optimal inventory levels improve staff efficiency, help you make the best use of your warehouse space, and reduce the risk of getting stuck with spoiled, out-of-season, or obsolete products that have to be marked down or discarded.
Inventory management has three main components:
- Product management allows you to manage stock levels of individual products, keeping them up to date based on customer orders and incoming product.
- Supplier management allows you to manage suppliers, keeping track of which SKUs come from which suppliers and tracking shipments, POs, and payments by supplier.
- Purchase order management allows you to generate and send—based on real-time stock levels—purchase orders, then track order status and receive stock into inventory against the order.