Retailers everywhere are grappling with the same problem – unused stock. How did this happen? More importantly, how can you smartly manage this stock to improve cash flow and customer delivery? Well, we’re glad you asked, because that’s exactly what we’re covering today.
Why Are You Swimming In Stock?
It’s actually a very simple answer – you’re not planning stock movements, and you’re not making the most of the channels you have. Obviously, there’s a lot more going on under the surface, but those are the key reasons.
Operating an omnichannel organization complicates how you use stock, but it also gives you opportunities that businesses with only a single channel don’t have access to.
Embrace Smart Sourcing Logic
One of the critical pillars of managing your inventory is using intelligent order routing. The basic principle of intelligent order routing is using specific rules to decide where you ship orders from.
This might involve shipping from the location with the most inventory, oldest inventory, lowest sell-through rate, or highest in-store markdown. By implementing this rule-based strategy, you can fulfill orders from strategic locations, preserving your profit margins. Additionally, smart order routing can be a game-changer when you need to balance orders for small and large products, which often involve unique transportation and specific location needs.
Adopt Minimum Shipments Strategy
While it's common for commerce platforms and ERPs to allow split shipments, it's important to aim for minimum shipments. By doing this, you not only reduce the delivery costs but also speed up the delivery process. This efficiency not only enhances customer satisfaction but also helps clear your inventory faster.
To do that you need to be able to connect the stock you have from in-store, to your warehouse, to your retailers. Wherever your stock is, you need to be able to get a hold of it.
Unleash The Power Of Distributed Order Management Systems
A distributed order management system can work wonders for maintaining optimal inventory levels. This system lets you control stock availability, setting buffer or safety stock levels at the SKU-location level.
This control enables you to prevent canceled orders on popular, high-velocity items, make more stock available online at stores where inventory is moving slowly, and protect the in-store experience at your flagship stores – because customers can always get what they want.
In the current market scenario, this system is crucial to optimize fulfillment and ensure efficient pick and pack processes. It can help manage capacity, such as limiting total orders per day by store, and even expand your sales channels by allowing you to sell in more channels.
It's time to optimize your retail strategy. To do that, you need Wolfpack's ORP. Perfect for omnichannel businesses who want to maximize the value of their stock, deliver faster, more efficiently, giving the customer what they want, at every opportunity.
If you’re having a hard time managing your stock and getting the most out of it, you need Wolfpack’s help. Reach out today, we’re always ready to help.