What is an Inventory and an Inventory Management System?



In the ecommerce competitive landscape of today, stock is one of the most valuable assets a company has. It is all the materials and products a company holds to sell. Efficient management of inventory ensures companies satisfy demand without overstocking or stockouts. This is where an effective Inventory Management System (IMS) is used.

An Inventory Management System (IMS) is a centralised system enabling businesses to track inventory levels, sales, orders, and deliveries by different sales outlets and locations of warehouses. It eliminates and automates the process of managing stock, enabling ecommerce brands to cut costs, improve accuracy, and deliver a better customer experience.

What is an Inventory Management System?

An Inventory Management System is software that assists an enterprise in monitoring the flow of goods in and out. It provides a clear picture of what inventory is in stock, where, and how it's moving through various channels. This kind of system is very useful for ecommerce companies selling on various platforms since it allows concurrent updates of inventory and efficient order fulfillment.


The purpose of warehouse and inventory  management system is to optimise inventory control by utilising real-time information as well as the feature to automatically apply some functionality. This helps prevent mistakes from being made, current stock counts are maintained, and demand planning can be done with greater accuracy.

Why Your Ecommerce Business Needs an Inventory Management System

Ecommerce businesses must today manage several channels of selling, differing customer requirements, and the imperative to ship quickly at all times. Without an IMS, manual monitoring leads to overselling, lost sales, and delayed shipping.


Here's why you must have an IMS for your ecommerce business:


  • Avoid stockouts and overstocking: An IMS enables you to have the right amount of inventory at the right time.

  • Enhance customer satisfaction: Ships orders accurately and on time.

  • Increase business efficiency: Reduces human labour and mistakes.

  • Streamline multichannel selling: Inventory coordination between marketplaces, websites, and stores.

  • Improve financial management: Real-time, accurate data supports accounting and cost tracking.



An IMS plays a crucial role as far as inventory accuracy is concerned, which directly relates to profitability and brand reputation.


What Are the Types of Inventory Management Systems?

Different companies have different requirements for inventory management. Below are the typical kinds of inventory management systems:


  • Periodic Inventory Systems: Inventory is counted and accounted for at periodic intervals.

  • Perpetual Inventory Systems: Inventory is automatically updated while transactions occur.

  • Barcode and RFID-Based Systems: Use scanning technology for product movement tracking.

  • Cloud-Based Inventory Systems: Web-based and scalable.


For scaling quickly growing ecommerce companies, a cloud-based warehouse and inventory management system is typically the most responsive and efficient solution.

Must-Have Features of an Inventory Management System

A well-functioning IMS must be built with a menu of features that meet the functional requirements of an ecommerce business. These are the most important features to include:


  • Barcode Scanning: Accelerates stock receiving and dispatch functions and reduces errors.

  • Real-Time Inventory Updating: Updates inventory levels constantly.

  • Multichannel Inventory Management: Keeps stock centralised and synchronised across multiple selling channels.

  • Advanced Reporting: Provides insights into inventory trends, stock turnover, and product performance.

  • Multi-Warehouse Control: Controls inventory in multiple shipment points.

  • Inventory Forecasting: Forecasts demand to avoid understocking or overstocking.

  • Accurate Accounting: Integrates with financial systems for clear reporting and compliance.

  • Raw Material and Assembly Tracking: Ideal for brands selling assembled or bundled products.

  • Cross-Organisational Integration: Integrates with customer service, supply chain, and sales teams.

  • POS Integration: Interconnects in-store sales with online stock for integrated stock management.


With effective logistics services for ecommerce integration, these features enable brands to offer quick and guaranteed delivery to customers.


How Eshopbox Solves Ecommerce Inventory Challenges

Eshopbox is a technology-driven fulfillment platform with advanced warehouse and inventory management solutions for ecommerce businesses. The platform is formulated to empower high-growth brands with real-time inventory visibility, auto-stock refreshes, and accurate forecasting.


Inventory is automatically synced between marketplaces like Amazon, Flipkart, Myntra, and D2C sites like Shopify and WooCommerce by Eshopbox. This eliminates the risk of overselling and ensures timely replenishment of stock.


Eshopbox further provides inventory management for multiple warehouses, allowing brands to stock close to customers. This reduces shipping costs and lead time. Its platform has smart algorithms to route orders to the most appropriate fulfilment centre.


Besides, Eshopbox also integrates inventory management with end-to-end ecommerce logistic services in the manner of storage, picking, packaging, shipping, and returns management. This integrated approach grants ecommerce companies a gigantic operational edge by unifying inventory and logistics in a single platform.

Conclusion

An efficient warehouse and inventory management system is a key to successful ecommerce. It provides businesses with more control of stock, improved customer satisfaction, and a scalable business. Together with stable logistics services for ecommerce, it enables brands to meet market demands without overspending on operations.


If you wish to improve inventory accuracy, set up orders quicker, and expand through various channels of sales channels, Eshopbox can be the perfect solution. Schedule a demo today to discover how Eshopbox can help you automate your inventory management and maximise your ecommerce order fulfillment processes.
Location: India

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