Multichannel Inventory Management –

Challenges & Solutions

In recent times, When brands are moving to the D2C (Direct to
customer) method of selling over traditional long supply chain method,
and sooner they started understanding that running an eCommerce
business is a quite challenging job as there is tough competition in the
market as well as there are different management methods needed to
be implemented to succeed. Every online retailer is trying to serve the
customer as fast as possible.
In this fast pacing business, there’s one thing that every eCommerce
business struggles with is inventory management, and then the only
thing which can keep you ahead of your competitors is a robust
inventory management procedure.
It is necessary to have a complete overview of ins and outs of managing
inventory to build a sustainable, profitable, scalable eCommerce
business in today’s time. There are too many challenges faced by
eCommerce businesses, where Inventory management leads the chart.
What is Multichannel Inventory Management?

Multichannel inventory management involves monitoring inventory from

various sales sources and storage locations for eCommerce, retail,
marketplace, and wholesale purposes. It enables you to effectively
manage stock levels, reordering, and inventory forecasting, facilitating
accurate inventory turnover planning.
With multichannel management solutions, you can concentrate on
scaling your business instead of spending resources on the intricacies
of inventory management.

And Here we will talk about some of the challenges & solutions for
Inventory Management.
6 Multichannel Inventory Management Challenges

Most eCommerce businesses have multiple warehouses which cause

inefficient coordination, as well as brands also sell on multiple
eCommerce channels (i.e. One brand selling its multiple products on
Their website, Flipkart, Amazon, Meesho & many other platforms),
so It becomes very difficult to keep exact track of all inventory arrived at
warehouses, and orders dispatched. Manual handling makes it more
complicated and time-consuming.
And due to such inefficient inventory management, Stock shortage or
stock surplus is a common problem that businesses face. Incomplete
information costs a lot to the company resources. And keep ignoring
issues like this, which may lead the company to terrible losses and
unwanted outcomes.
To avoid such inventory management errors, online businesses across
the world are embracing eCommerce inventory management software.
Inventory management is a daunting task that impacts every aspect of
your business. To assist you, here are six common supply chain
challenges to watch out for when managing inventory.
1. Overselling and stockouts:

Managing inventory counts manually becomes increasingly challenging

when selling on multiple channels. A sudden change in sales volume can
easily be overlooked, resulting in missed sales opportunities due to stock
depletion. This creates a negative customer experience, as they may try to
purchase a product online only to find out it is unavailable. Even
unintentionally misrepresenting inventory levels can lead to negative
consequences from online marketplaces. Therefore, it is essential to have a
robust inventory management system to avoid such situations.
2. Stocking too much inventory:

eCommerce businesses often struggle with the challenge of overstocking

inventory, leading to wasted spending and additional stocking fees. This issue
becomes more complex when selling across multiple channels, making demand
forecasting a crucial but complicated task. Deciding how to store inventory across
these channels requires careful consideration. Additionally, other factors such as
marketplace sales performance against expectations and performance across
other channels must be taken into account when determining inventory levels.
Effective inventory management practices are crucial in ensuring optimal
inventory levels and maximizing business growth.
3. Inadequate inventory tracking:

Ecommerce retailers require visibility on available products across sales

channels and their respective pricing. Delivery within the promised time
frame is also crucial. The absence of an accurate inventory tracking
system poses a high risk of human errors at every stage of the sales
cycle. To mitigate this risk, implementing an effective inventory tracking
system is essential for efficient and successful eCommerce operations.
4. Inaccurate forecasts caused by poor data:

For high-growth eCommerce businesses, accurate and timely data is vital to

implement an effective supply chain strategy. The data must be easily
accessible, comprehensive, and up-to-date. However, obtaining quality and
consistent data can be challenging, especially when selling across multiple
channels. Reporting features, metrics, delivery, and format can vary across
channels, which can make data collection and analysis more complex.
Therefore, it is important to establish robust data collection processes and
utilize technology to simplify data management.
5. Higher order defect rate:

Marketplaces use Order Defect Rate (ODR) to measure a seller’s ability

to deliver a positive customer experience. Exceeding the ODR limits can
lead to penalties, such as losing selling privileges, for sellers on
platforms like Amazon and Walmart.
Learn: How to accelerate your e-commerce sales cycle
6. Inconsistent or poor customer experience:

Customers expect a consistent level of service regardless of the sales

channel used. While this is easily managed for single-channel businesses,
every additional channel adds complexity to sales and customer service
processes. To ensure a consistent high-quality experience, a complete view
of business operations is necessary. This includes the ability to respond to
customer needs promptly and effectively. By doing so, you can maintain
positive customer experiences across all sales channels and promote
long-term business growth.
These are significant challenges of Multichannel Inventory Management
without an accurate inventory system. Let’s explore solutions to these
challenges.
Six Prominent Multichannel Inventory Management
Solutions

Here comes the role of eCommerce inventory management software,

which helps you to manage your inventory efficiently and keeps you
away from the stress of the frequent collapse of inventory. It used to be
a cloud-based software product that is developed to link various
marketplaces, warehouses, and your organization’s ERP systems
together into a single platform.
As the order activities occur on different marketplaces (e.g., Amazon,
Meesho, Paytm, Flipkart, Snapdeal, Myntra, and Shopify), the
inventory gets managed automatically in real-time. And shows you
hassless statistics of all your inventories in the warehouse, stock
dispatched as well as orders delivered.
If you are looking for such eCommerce tool for eCommerce Business,
choose OMSGuru – a robust software that facilitates Inventory
Management features across multiple channels.
1. Real-time data and insights:

Effective inventory management software offers up-to-date, real-time

stock level updates across all sales channels as orders are processed.
This centralized dashboard provides easy access to historical sales
metrics, along with essential information on shipping performance,
inventory, and orders, such as sales volumes and refunds.
2. Barcoding and scanning:

Barcodes and scanners help in accurately and quickly inputting SKU

information into the system, minimizing human errors. The use of bar
codes also simplifies inventory management tasks such as stocktaking
by scanning bar codes rather than manually counting and sorting items,
saving time and reducing mistakes.
● Easily, accurately, and efficiently track products
● Monitor the movement of inventory
● Simplify the reconciliation process
● Minimize transaction errors.
● Generate shipping labels
3. Analytics:

Analytics can provide a comprehensive overview of inventory usage

across various channels, including tracking inventory levels, pricing,
sales data, and historical data to analyze trends. Accessing this data
from a single platform and viewing inventory snapshots quickly can
inform inventory control and supply chain strategies.
4. Automated purchase orders and supplier relationships:

Multichannel inventory management system should simplify supplier

relationship management by storing critical information such as lead
times and minimum order levels. Moreover, quality inventory
management software can track purchase orders, manage the purchase
order process, and automatically generate orders when necessary.
5. Shipping improvements:

Multichannel inventory management software can enhance shipping

workflows by automating manual tasks associated with each order. It
also streamlines the pick-pack-ship process. Further, a good software
should provide the option to assign the appropriate carrier or fulfillment
partner and track orders after they are shipped. These features reduce
the time spent on shipping, eliminate manual errors, and increase
customer satisfaction.
6. Multi-location inventory control:

To prevent underselling or overselling, it’s crucial to have a clear view of

your inventory when managing multiple warehouse locations or
inventory across different channels. Multi-location inventory
management is essential in knowing the exact amount of inventory
available for sale and its location. It provides a powerful tool to track
inventory levels and ensure that you are meeting customer demand
while avoiding unnecessary costs associated with overstocking.
Why OMSGuru?
Implementing OMSGuru makes your work easier and helps to grow your
business. It provides you with good inventory data which helps you
make data-based strategic decisions about what to do next, what to buy,
and where there is a shortage. It increases your real-time visibility and
reduces errors. Real-time inventory value tracking not just gives you
data but also accurately monitors your company’s complex finances.
Your inventory management system should be able to provide you with
a unified view of all your inventory across different physical locations,
such as warehouses, storerooms, and pop-up shops, as well as online
channels. This is especially important when managing inventory in
separate warehouses or keeping track of inventory when on the move.
With a good inventory management system you can easily track and
manage inventory in different locations and get a comprehensive
overview of your entire inventory.
OMSGuru provides advanced inventory management modules including
Advanced Multi-Channel Inventory Sync, Multiple Warehouse
Management, Print Barcode & Retail Labels, Prioritize stock allocation
on Multi-channel, Buffer Stock, Max Listed Stock, Simple & Bundled
Combo products, Manage Inventory by Rack Space, Put Away and Pick
List.
In short, OMSGuru covers every major feature that an eCommerce
business should need for its day-to-day inventory control.
If you are still having doubt that how a software can work like magic &
smoothen your inventory management process, then you can connect
with OMSGuru Support Team by clicking here or Schedule a free
demo to clear all your queries & help you take your decision.
Conclusion:

Thus, if your Inventory issues are covered with such software, you can
further focus on your business growth and achieve your business target
without giving your valuable time and efforts to such easily automatable
business operations.

This Blog was Official Posted By:

https://www.omsguru.com/multichannel-inventory-management/