A real-time inventory tracking system is an automated way to keep track of sales, orders, transfers, and purchases as they’re happening. It is done through QR codes, scanners, and inventory management software. In this blog, we’ll go over why real-time inventory tracking is a game-changer for eCommerce businesses.
What are the benefits of real-time inventory tracking?
1. It helps identify and cut down on unnecessary expenses
When you’re tracking inventory in real time, you get a better idea of unnecessary spending and ways to end them. Here’s how real-time inventory tracking saves you money:
– Helps cut dead stock costs: Dead stock is expired, irrelevant or old stock that you cannot sell anymore. With real-time inventory expiration tracking, you’ll know when a stock is about to turn into dead stock. You’ll have a better idea of how much dead stock you own. You’ll not incur expenses to get additional inventory but focus that money on getting the potential dead stock sold before it goes bad. If you identify the dead stock in time, you can also save the costs of selling it at discounted prices to get rid of it.
– Saves storage space costs: When you know you’ve got an adequate stock, you won’t purchase additional items that require you to purchase additional storage. It helps you track when your goods are selling the most so you can save costs by buying the raw materials when they’re in less demand, and have them ready for the peak season at a lower cost. You can also save storage costs during your off-season.
2. It creates a better customer experience
Real-time inventory tracking is beneficial to you and your customers as well. It helps you make well-informed decisions that work best for both of you. Here’s how it helps in creating a consumer experience that’ll keep them happy and satisfied:
– Ensures they get their favorite products: You can see your best-selling products with inventory tracking. Once you know which items are in high demand, you can purchase them in adequate quantities to ensure your customers never run out. For your business, having optimal inventory makes your customer less likely to switch to competitor products. It also helps you identify which products are selling the best in a particular area so you can keep the local warehouses stocked to reduce delivery times and save on shipping costs.
– Streamline delivery: Delivery times can make or break an eCommerce business. When you’re watching an order gets shipped in real-time, you can tell which processes are taking the longest and figure out ways to speed them up to reduce overall delivery time. It can also help in honestly communicating delivery times to your customers so you can live up to their expectations.
3. It helps maintain the optimal inventory levels
Demand is ever-fluctuating, so it’s hard to anticipate how much inventory you might need but with real-time inventory tracking, it’s a lot easier. Here’s how it helps in maintaining optimal inventory levels:
– Helps in planning: Historical real-time inventory data helps you understand the demand in a particular area at a given time. It tells you how much you’ve sold every month so you can make well-informed planning decisions on how much you need to buy and when you need to buy it. It helps you better anticipate inventory changes based on historical and real-time data.
– Helps calculate safety stock: Safety stock is a set amount businesses must have to ensure their products don’t go out of stock. With real-time inventory tracking, you know how much you’re selling with greater accuracy to calculate how much safety stock you need.
– Prevents excessive buying: Real-time inventory tracking helps you gauge your safety stock needs and customer demands. This prevents you from buying an excessive stock that you’ll have to pay extra to store. It helps you find the balance between underbuying and overbuying.
Real-time inventory tracking can be a boon to your business in many ways. You must pick the right inventory tracking system to get the best results. If you’re an eCommerce business looking for an effective and efficient real-time inventory tracking solution, you should check out ours here. We’ve made inventory management simple. We help you track your orders in real-time through texts and emails so you know exactly how much inventory you have at all times. We offer inventory viewing through specific filters to give you an in-depth look into your business. It’s a phenomenal system to streamline your growth.