Sell out without losing sales.
Inventory management is one of the biggest problems faced by multi-channel ecommerce stores. The costs of getting it wrong are astronomical. Forty percent of lost sales are down to stockouts as customers simply take their custom elsewhere.
The problem is…
Legacy ecommerce systems just aren’t up to the job. Spreadsheets, manual record keeping and siloed tools result in chaos. Chaos means overselling, overselling means stockouts and stockouts mean thousands of pounds in lost revenue.
The good news is…
Adobe Commerce Services offers world-class inventory management solutions to put an end to inventory nightmares. Tools that automate stock taking, synchronize stock levels across sales channels, and put intelligence behind inventory decisions.
Table of contents:
- Grasping the Complexity of Inventory Management
- Adobe Commerce Services for Inventory: Why It Excels
- Inventory Management Essentials That Move the Needle
- Harnessing the Power of Multi-Source Inventory
- Ready to Begin? Next Steps for Implementation
Inventory Management – The Staggering Price of Failure
Let’s be honest.
Inventory distortion (shrinkage, stockouts and overstock) is costing businesses a whopping $1.6 trillion each year. Not million. Trillion.
Globally. Annually.
Customers walking away from empty shelves are hitting every industry in the wallet.
Imagine:
If a potential customer is ready to purchase a product you sell, but it’s not available, they will just go elsewhere to buy. Odds are, they won’t return.
If you overstock a product, that’s profit on the shelf, not in your bank.
Legacy inventory systems just can’t cope with the volume and velocity of the modern ecommerce environment. Ordering, transferring and managing stock between a website, warehouse(s), a retail outlet, third-party platforms like Marketplaces and eBay – requires horsepower.
Thankfully, enterprise-grade ecommerce platforms are here to solve this problem. Partnering with an experienced Adobe commerce development company ensures businesses can source enterprise-grade services configured correctly from day one. Tailored specifically to tackle inventory headaches at scale.
Adobe Commerce Services for Inventory: Superpowers that Stand Out
Adobe Commerce, formerly Magento, is not your average ecommerce platform.
This is an enterprise solution that is the power behind the world’s largest ecommerce stores. Businesses using Adobe Commerce Services grow three times as fast as those on other platforms. Developers are 67% more productive when building custom features on Adobe Commerce.
The secret?
The platform was architected with the complex inventory needs of major brands in mind. Whether operating one or one hundred warehouses. One product or one hundred thousand. Adobe Commerce scales.
The inventory system works hand in glove with order management, shipping, and warehouse systems. Meaning inventory is transparent across all areas of the business. End of stockout panic or losing sales due to backorders.
Also, the platform works for both B2C and B2B inventory requirements. The system can show different stock, pricing and availability to different customers. This is a critical flexibility for businesses serving multiple market segments.
Multi-Source Inventory: The Game-Changing Inventory Functionality
One of the most exciting capabilities built into Adobe Commerce is Multi-Source Inventory.
Multi-Source Inventory allows a store to source stock from unlimited places. Warehouses, retail outlets, drop shipping vendors and third-party logistics providers. All can be pulled into one dashboard.
The system can intelligently calculate available stock across all sources. When an order is placed, Adobe Commerce can automatically allocate it to the best source for fulfilment. Meaning orders are filled faster at lower cost.
And the gains? Hugely:
- Ship from the location nearest to the customer.
- Lower shipping costs and delivery times.
- Allocate stock across multiple warehouses
- Prevent overselling across all sales channels.
- Manage backorders intelligently.
Stores can prioritize stock allocation by source. If stock is not available in the primary warehouse, it will automatically check secondary locations. Customers receive their products faster and no sale is lost because stock is in the “wrong” warehouse.
Real-Time Tracking and Intelligent Automation
Adobe Commerce inventory management runs in real-time.
Any sales, returns or stock adjustment is reflected across every sales channel instantly. This eradicates the problem of overselling experienced by ecommerce stores operating disjointed systems.
Adobe Commerce comes packed with automation tools to make intelligent decisions. Stores can automatically set reorder thresholds. When stock reaches a certain level, the system will generate a purchase order and reorder stock. Automated low stock notifications can be sent to alert team members before a shortage occurs.
Forecasting can help anticipate demand:
Adobe Commerce can use historical sales data to predict trends and behaviours. Seasonal patterns, popular product bundles and ideal stock levels are just a few examples. Helping the business avoid stockouts and overstock at the same time.
Integration with shipping providers enables auto-tracking updates. Customers know where their orders are and that they are on the way. Fewer queries. Happy customers.
Reserve inventory management features enable the system to ensure that items in a customer’s shopping cart are not being sold to someone else during the checkout process. This leads to smooth professional shopping experience, fewer cart abandons and a greater conversion rate from browsers to buyers.
Cutting Edge Reporting and Analytics
Insight is everything in inventory management.
Adobe Commerce comes with a full arsenal of reporting tools and capabilities to deliver deep insights and data into inventory performance. Turnover rates can be tracked and underperforming products identified. Trends can be seen before the competition catches on.
The analytics dashboard visualizes stock levels across all locations, product velocity and turnover rates, SKU profit margins, supplier performance metrics and forecast accuracy. These insights help businesses make informed decisions about future purchases.
Adobe Commerce also has custom reporting built in:
If there are specific metrics unique to a particular business that need to be tracked, Adobe Commerce’s reporting engine can create custom dashboards to visualize exactly the most pertinent information. This level of bespoke customisation is very rare in other ecommerce solutions.
The Starting Point: Next Steps for Implementation
Eager to use Adobe Commerce for inventory management?
There are some key points stores need to consider:
Firstly, carry out an inventory audit on existing inventory. Identify existing pain points, processes and areas where manual processes slow down the business. This will inform how to proceed with the implementation strategy.
Secondly, map all the inventory sources the business uses. Every warehouse, retail outlet and fulfilment partner will need to be documented. Adobe Commerce needs to know about these to be able to allocate orders optimally.
Thirdly, configure the inventory rules needed to match business requirements. Reorder points, stock allocation priorities and automation rules can all be configured in Adobe Commerce. These settings will dictate how the system behaves and manages inventory.
Lastly, it’s important to train the team to use Adobe Commerce. The software is powerful but needs to be properly trained to get the most from it. Everyone from warehouse staff to customer service needs to understand the system.
Integration with existing systems is also essential. Adobe Commerce Services can connect with ERP systems, accounting software and warehouse management systems. Integration will ensure smooth data flows between all tools used by the business.
To Conclude
Inventory management can make or break an ecommerce business.
Stock issues account for the vast majority of ecommerce sales failures. Adobe Commerce Services offer the tools needed to rid ecommerce businesses of stock outages, backorders and overselling.
The platform’s Multi-Source Inventory system enables retailers to manage stock from unlimited locations. Real-time tracking capabilities end the nightmare of overselling whilst smart automation capabilities manage routine repetitive tasks. Advanced analytics and reporting tools provide the insights businesses need to make intelligent decisions.
Adobe Commerce businesses grow three times faster than the competition for a reason. Adobe Commerce Services is uniquely built to tackle complex inventory requirements that other ecommerce solutions simply can’t cope with.
It’s no secret, 78% of ecommerce businesses state that by 2025 they are planning on investing in inventory automation tools. If ever there was a perfect time to upgrade and supercharge inventory management processes, it is now.
Adobe Commerce offers scalability, flexibility and power needed to succeed in ecommerce today. Get inventory management right, and the rest will fall into place.
Happy selling.
