With aggressive sales and discounting tactics being practiced in all competitive industries, understanding how to get the most from your inventory data is a foundational part of building successful pricing strategies.
In today’s market, there’s no room for the faint of heart. If you aren’t keeping your finger on the pulse of all the different nuances in the business world, chances are you’ll be swallowed right up by someone who is.
One of the most crucial parts of appealing to certain demographics and competing in economies of scale is making sure your value proposition is as clear as day.
Inventory Management Software
Inventory management software is a software system for tracking inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents.
Modern inventory management systems must have the ability to track sales and available inventory, communicate with suppliers in near real-time and receive and incorporate other data, such as seasonal demand. They also must be flexible, allowing for a merchant's intuition. And, they must tell a storeowner when it's time to reorder and how much to purchase.
Data Drive Pricing Metrics
In the wholesale distribution of non-perishable goods, big data helps to integrate business systems to improve enterprise-wide operational efficiency and deliver higher profits more than ever before. Innovative leaders in the supply chain industry enjoy these 4 main benefits resulting from using big data analytics across supply chains.
Below are 4 ways big data is changing the way companies manage inventory:
Improved Operational Efficiency: With big data, operations managers may have an overview of real-time operations and better access to metrics, which helps to remove bottlenecks and improve efficiency. Big data enables supply chains to proactively enhance performance compared to traditional models.
Maximised Sales & Profits: In the wholesale distribution industry, access to real-time data helps finance directors to manage tight profit margins with greater insights. This ensures that maximum profits can be achieved from investments in.
Increased Customer Service Levels: Having access to real-time customer demand pattern data helps service managers match inventory and inventory levels with customer orders accurately, which will contribute to increased customer service levels. Data can be analysed to predict seasonal trends, spikes or depressions in customer demand to ensure the right levels of inventory are maintained at all times.
Reduced Costs By Migrating to the Cloud: A Software-as-a-Service (SaaS) approach for IT management means that the cloud-based nature of big data reduces hardware and maintenance costs. It can also be seamlessly integrated into existing systems at low costs.
“To avoid stockouts, stores will be doing more sophisticated sales forecasting. According to a study by Martec International
, commissioned by Relex, “The primary improvement requested by respondents [store owners and stakeholders] was better sales forecasting to ensure superior availability.”
We can also expect retailers to leverage technologies such as Artifical Intelligence when coming up their forecasts. AI platforms can analyse a merchant’s sales and stock movements and make recommendations on what — and how many — products to order.”
Enabling cross-selling to encourage more product movement
One of the problems with many online stores is that the inventory they offer is so vast that customers can easily miss opportunities to buy additional products which complement their purchases, even though the e-retailer supplies them. However, it is common for many brands to make suggestions based on a person's actions during a current visit or their past purchases.
If companies plan carefully, these recommendations can help them move stagnant products. Consider a customer who buys a refurbished iPhone 6S, an older model. Accessories for the 6S might not be advertised in top sellers lists because they are no longer in high demand, however e-commerce executives could use a big data platform to determine which iPhone 6S products it has in inventory and which were historically the biggest sellers, in order to recommend them to the customer buying the refurbished phone.
Many of the trends above come from tech advancements. The better technology gets, the better inventory management becomes.
You need to pay attention to these trends — even though some seem like they’re out of a sci-fi movie. All in all, the trends explored above drive home a major point: inventory management in 2019 has improved and your store needs to adjust accordingly.
Your adjustments and corrections to these trends might be different from that of another store. You’ll have to implement them according to your inventory and keep testing until you find a good fit.