Best Practices For Inventory Management
Here are some of the best practices below for your inventory management that must help drastically decreased the number of your out of stock goods to sell:
Use several friendly suppliers
Having accessed with many suppliers may be a massive advantage. Why? Because to have so many suppliers with the overlapping inventory will be the best means to enhance the order fulfillment ratio. When the supplier A does not have the items in stock, there is the best chance that supplier B had it in stock. Furthermore, it is dangerous to rely on a supplier as the place to resource the products. If they settle for not working with you, raise the prices or just go out of the business it put at risk the future of the business.
You will never be capable of finding two suppliers that will carry all of the similar products, but when they operate in that same industry, or niche, both will likely stocked the best-selling stuffs – and this is what you are most concerned about.
Pick the products wisely
Sketching on the final point, try to vend mainly items that you are aware being carried by mutual suppliers. In this way, you will have two possible fulfillment options.
Use the generics for your advantage
Although they will not have that exact same item, the two suppliers will carry near the same products which are interchangeable. It is really true for smaller ornaments and the product add-ons. When you may confirm that the two products are the same, write down the generic product illustration that will permit you to fulfill an order form from either of the suppliers. Also, jot down both the model numbers of suppliers' in the model area. In that manner you may forward the order invoice to whichever supplier without the need to make the changes.
Just remember that you have to exercise some opinions in this area. Every market may have well-known brand names and you must not try substituting the products.
Check on the item's availability
Just because the dropshipper lists the items on the website does not mean it takes that items consistently. It is the best idea to have a chat with the sales representative regarding the availability of the products you are taking into consideration of selling. Are the items in stock of 90 percent of the time or even more? Or does this dropshipper kept only some on hand and usually having trouble getting the products reordered from their manufacturer? You may want to shun from stocking the latter kind of products.
Dealing with the out-of-stocks orders
Despite the best planning ever, you will inevitably deal with the customer orders you cannot fill. Instead of always telling your customers the items are out of stock, give them a complimentary upgrade to the same – but a better product. Your customers will likely be delighted, and you will be able to keep the customer relationship. You cannot make any cash on the orders, but that is absolutely fine! You would not have made any cash also, had your customers cancelled the orders either.
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