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– Integration with Multiple System

– Returns and Refund Management
4. Making the Final Decision

When you’re running a small business in the UAE, there are many aspects you need to take care of, but one of the biggest challenges is managing inventory. Whether you’re operating a boutique in Dubai’s shopping districts or managing a local store in Abu Dhabi, if you want your business to be successful, you need to track your inventory effectively.

And what better way than using advanced inventory management software? But the real question is, with so many options out there, finding the right one for your small business can be overwhelming. So, how do you choose the best fit? 

It starts with understanding what you need from the software. Let’s look at the key considerations that can help you choose the right inventory management software for your small e-commerce business. 

Factors to Consider When Choosing Inventory Management Software

Here are some major factors that you should consider while finding the perfect inventory solution for your business.

• You should choose software that matches the complexity of your inventory and the scale of your operations.
• Prioritizing user-friendly software with a clean and intuitive interface is very important.
• Sellers should look for software that integrates seamlessly with their e-commerce platform, payment gateways, shipping services, accounting software, and other systems. 
• To streamline operations, you should also check compatibility with platforms like Shopify, WooCommerce, or Magento.
• Consider the cost and pricing models of the software and try to balance your budget with the features offered.
• Seek reliable customer support that includes live chat, phone support, and email assistance.

Key Features and Functionalities of Inventory Management Software in UAE

Here are major features that collectively enhance operational efficiency, accuracy, and decision-making in inventory management.

1. Real-time Inventory Tracking

Real-time inventory tracking is like having a live view of your stock levels. Every time you make a sale or receive new inventory, your system updates instantly. For small businesses in the UAE, this means you always know exactly what’s on your shelves and what needs reordering. No more guesswork or surprises. This feature helps you make smarter decisions about what to buy and when which is crucial in the fast-paced UAE market. Plus, when you keep popular items in stock and avoid running out, your customers stay happy and come back for more. 

2. Simple Reordering

Imagine never having to stress about running out of stock again! With the reordering feature, you can set up alerts to let you know when it’s time to restock. Instead of manually checking your inventory and placing orders, your system can do it for you. This means you’ll get reminders or even automatic purchase orders when stock levels drop below a certain point. 

3. Barcode Scanning

Scanning barcodes speeds up the process and cuts down on errors. Instead of manually typing in product information, you get accurate, up-to-date records in seconds. This not only streamlines your inventory management but also frees up time to focus on other important areas of your business. Whether you’re restocking shelves or handling shipments, barcode scanning simplifies the task and helps keep your operations running smoothly.

[Suggested reading: How to Implement Barcode Inventory Management System?]

4. Multi-location Management

Managing inventory across multiple locations can be a real challenge, but with multi-location management, it becomes easy. If you have several stores or warehouses spread across different areas, you get a unified view of all your stock. This means you can easily track and manage inventory whether it’s in a store in Dubai or a warehouse in Abu Dhabi. You can seamlessly transfer stock between locations, ensure each place has the right amount of inventory, and make informed decisions about where to send more products. 

5. Integration with Multiple System

Go for an inventory management software that seamlessly integrates with your existing ecosystem. When your inventory software connects effortlessly with your ERP, POS, accounting tools, and sales channels, everything just works better. This will help you automatically update your stock levels, keep your financials in sync with minimal effort, and ensure your inventory is consistent across all sales platforms. Integration streamlines your processes, reduces errors, and saves you time so you can focus on growing your business rather than juggling different systems.

6. Returns and Refund Management

You can choose an inventory system that makes returns and refunds easy to handle. When a customer sends back a product, your system takes care of everything, from updating stock levels to adjusting your accounts. It even helps with reconciliation, so your records stay accurate, and you avoid any mismatches. With a smooth returns and refund process, you’ll keep your customers happy and your operations running smoothly, leaving you more time to focus on growing your business.

Making the Final Decision!

Picking the right inventory management software can feel like a big decision, but it’s key to running a successful small business in the UAE. With so many options out there, where do you start? This blog is the perfect guide for you to think about what you really need from the software. Look for features that match your business. 

When you’re comparing options, check for ease of use, cost, and whether it fits within your budget. Reliable customer support is a big plus too—it’s great to know help is available when you need it. Ultimately, the right software will make managing your inventory a lot easier and let you focus on growing your business. 

So take your time, find what works best for you, and get ready to streamline your operations and boost your e-commerce success!

Related read –

• Top E-commerce Marketplaces for Businesses in the United Arab Emirates (UAE)
• Best Warehouse Management Software in the UAE
• Best Order Management Software in the UAE
• How Vidiwell Health Achieved 230% Sales Order Growth?
• Order, Inventory, Logistics Challenges & their Solutions in the UAE
• How Dubai based YZ Buyer Demonstrated 2X Growth?
• Major Challenges & Opportunities of the Cosmetic Industry in UAE

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This scenario not only results in a lost sale but also potentially damages the reputation of your online store. So, what’s the solution? The answer lies in implementing effective inventory tracking systems. 

But before we dive into inventory management software, let’s take a close look at inventory tracking and how it can help your e-commerce business scale.

What is Inventory Tracking?

At its core, inventory tracking is a process of monitoring and managing the stock of goods within a business. It involves keeping tabs on the quantities, locations, and statuses of various SKUs in a company’s inventory.

Let’s consider the scenario of an online bookstore. The seller procures books from various publishers and distributors to offer on their website and in-store. To efficiently manage their inventory, they employ inventory tracking. They begin by recording all available books, including crucial details like title, author, ISBN, quantity, and warehouse location. 

As customers make purchases on the website, inventory levels fluctuate accordingly. Whenever a book is sold, the seller promptly updates their inventory records to reflect the reduced quantity. If certain books start running low in stock, the inventory tracking system triggers alerts, prompting the seller to reorder more copies to prevent stockouts. 

Furthermore, the seller uses the data gathered through inventory tracking to analyze sales trends over time. This analysis helps identify the highest-selling SKUs, enabling informed decisions regarding restocking or promoting specific books. 

Ultimately, implementing inventory tracking ensures that the bookstore consistently offers the right products at the right time, thereby enhancing customer satisfaction and optimizing inventory management processes.

What is Being Tracked?

Now that we understand the essence of inventory tracking let’s delve deeper into what exactly is being tracked in inventory management. Here are several components that are monitored and managed:

• Products: The items or goods that are stocked in inventory, each with its own unique identifier (SKU, barcode, etc.).
• Quantities: The number of units or items of each product available in inventory, ensuring accurate stock levels.
• Locations: The physical storage locations within a warehouse or facility where each product is stored, facilitating efficient retrieval and organization.
• Statuses: The current status of each product, such as whether it is in stock, out of stock, on order, in transit, or reserved for specific purposes.
• SKU Details: Essential information associated with each product, including its title, description, unit price, supplier details, and any other relevant data.
• Transactions: Any movements or changes in inventory, such as sales, returns, transfers between locations, or adjustments, are tracked to maintain accurate inventory records.

What are the Benefits of Inventory Tracking

Whether you’re a small business or a large enterprise, the ability to track and manage your inventory effectively can make all the difference in your bottom line. From optimizing resource allocation to enhancing customer satisfaction, the benefits of inventory tracking are manifold and far-reaching.

• Optimized Resource Allocation
• Improved Forecasting and Planning
• Enhanced Operational Efficiency
• Reduced Holding Costs
• Enhanced Customer Satisfaction

1. Optimized Resource Allocation

Inventory tracking allows businesses to have real-time visibility into their stock levels, enabling them to optimize resource allocation. By understanding which products are in high demand and which are moving slowly, businesses can adjust their purchasing and production schedules accordingly. This prevents overstocking of slow-moving items while ensuring that popular products remain readily available. Consequently, businesses can allocate their resources more efficiently, reducing carrying costs and maximizing profitability.

2. Improved Forecasting and Planning

Accurate inventory tracking facilitates better forecasting and planning. By analyzing historical data on sales trends and inventory turnover rates, businesses can make informed predictions about future demand. This enables them to stock up on popular items ahead of peak seasons or promotional periods, thereby avoiding stockouts and lost sales opportunities. 

3. Enhanced Operational Efficiency

Inventory tracking streamlines operational processes, leading to enhanced efficiency across the board. With automated systems in place, businesses can minimize manual errors associated with inventory management, such as double ordering or stock discrepancies. Also, real-time tracking allows for quicker identification of stock shortages or excess inventory, enabling prompt action to address these issues. 

4. Reduced Holding Costs

By maintaining optimal stock levels and preventing overstocking, businesses can reduce the need for additional warehouse space and avoid the risk of inventory obsolescence. This not only frees up valuable storage space but also minimizes the costs associated with storing, handling, and insuring excess inventory. 

5. Enhanced Customer Satisfaction

One of the most crucial benefits of inventory tracking is its positive impact on customer satisfaction. By ensuring that popular items are consistently in stock and ready for prompt delivery, businesses can meet customer demand more effectively. Also, accurate inventory tracking minimizes the risk of backorders, delays, or order cancellations, thereby fostering trust and loyalty among customers. 

Best Practices for Inventory Tracking

Implementing best practices in inventory tracking not only ensures accurate stock levels but also enables businesses to make informed decisions based on real-time data. Here are some tried-and-tested best practices for effective inventory tracking:

• Invest in Automated Systems
• Implement Barcode or RFID Technology
• Regularly Conduct Physical Counts

1. Invest in Automated Systems

Invest in inventory management software or an enterprise resource planning (ERP) system equipped with automated tracking capabilities. These systems can streamline data entry processes, minimize human error, and provide real-time visibility into stock levels, orders, and shipments. 

Choose a solution that integrates seamlessly with your existing systems and offers customizable features to suit your specific business needs.

2. Implement Barcode or RFID Technology

Handheld devices, such as barcode scanners, play a crucial role in streamlining inventory management tasks. They enable workers to scan product barcodes or RFID tags, instantly updating inventory records in real-time and eliminating the need for manual data entry. 

With handheld devices, inventory counts can be conducted quickly and accurately, enhancing efficiency and reducing errors.

3. Regularly Conduct Physical Counts

Perform regular physical counts of inventory to verify accuracy and identify discrepancies between recorded and actual stock levels. 

Schedule cycle counts for specific product categories or high-value items to ensure thorough coverage without disrupting daily operations. Compare physical count data with system records and investigate any discrepancies to address underlying issues promptly.

Let’s Simplify Inventory Tracking!

Efficient inventory tracking isn’t just a luxury for businesses; it’s a strategic necessity. By implementing the best practices outlined above, businesses can transform inventory management from a daunting task into a streamlined, agile process that drives efficiency, reduces costs, and maximizes profitability. Together, let’s make inventory management not just a task on your to-do list but a cornerstone of your business strategy!

Related read:

• Inventory Management for E-commerce Businesses: A Complete Guide
• Best Practices of Inventory Cycle Counting
• Why E-commerce businesses needs Inventory Management System?
• Benefits of Inventory Management Software
• Top Multichannel Inventory Management Challenges and Solutions

The post What is Inventory Tracking? Methods, Benefits, Challenges & Best Practices appeared first on unicommerce.com.

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The e-commerce industry in the Philippines is no exception, as its rapid growth demands efficient and effective inventory management solutions. While business owners in the Philippines are well aware of the benefits of automation, budget constraints can sometimes hold them back from making the switch. However, failing to address these inventory management challenges can limit a company’s ability to stay competitive in a rapidly growing industry

So, let’s unveil some of the most common inventory management challenges faced by companies in the e-commerce industry in the Philippines and solutions to overcome them.

Top Inventory Management Challenges in the Philippines

• Inconsistent Tracking
• Inefficient Warehouse Management
• Data Inaccuracy
• Limited Inventory Process Visibility
• Manual Documentation
• Overstocking and Understocking Issues
• Insufficient Order Management
• Expanding Product Portfolios
• Inventory Loss

Though every company can have its set of holdbacks, here are a few challenges that might be the common ones among all:

Challenge #1: Inconsistent Tracking

When you have tons of inventory to manage, it’s quite natural that the tracking can become tough, and there’s a huge room for errors in tracking products in the warehouse. Talking about the holdbacks, there are high chances of late and wrong product deliveries due to inconsistent inventory tracking, which can be responsible for depleting the brand value and gaining low ratings on social media as well, ultimately resulting in tarnished brand value. 

Challenge #2: Inefficient Warehouse Management

As said earlier, inventory management isn’t ever a piece of cake; thus, managing warehouses to accommodate new stocks can be a cumbersome process. In case you’re operating on a manual process, there can be a few steps, including scratching a plan, allocating spaces, and then heading to management. The process will take generous time and resources, which can increase your budget. Without an automated inventory system, it’s nearly impossible to have efficient warehouse management.

Challenge #3: Data Inaccuracy

Managing large amounts of data associated with a vast inventory can be extremely challenging without automation. Manual data management becomes even more complex and prone to errors. Having a system to back up your process and incorporating the right tracking to have the data in sync can be done only through an e-commerce solution. This can later avoid data inaccuracy and keeps stuff ready to use for further purposes.

Challenge #4: Limited Inventory Process Visibility

Customers have come to expect transparency and accuracy in their e-commerce experiences, including real-time tracking information. Inadequate inventory tracking can result in delayed deliveries, which can lead to customer frustration and a switch to competitor products. Inaccurate inventory management can severely impact customer satisfaction and loyalty. 

Challenge #5: Manual Documentation

Manual inventory management can be a difficult task, especially when it comes to tracking inventory, managing reports, processing purchase orders, and handling invoices. Inaccurate documentation can result in incorrect order allocation, causing missed or delayed deliveries that can have a significant impact on operations and customer satisfaction. 

Challenge #6: Overstocking and Understocking Issues

Overstocking and understocking are two significant issues that businesses face when managing their inventory. In a general supply chain process, new stocks are ordered once the old/existing ones go bleak or maybe about to finish. In the case of inefficient inventory management, there are huge changes in overstocking or understocking materials, which can cut your profit margins, while manual management can lead to inaccurate records, missing items, and higher budget allocation for re-ordering.

Challenge #7: Insufficient Order Management

With tons of orders pouring in, you must have a strong order management system to help you fight the insufficiency of products. For instance, if the customer has ordered five pieces of a particular order and post-purchase you find lesser pieces available, ordering more will take time, and thus your order delivery duration will extend, leading to insufficient order management. Additionally, incorrect SKU mapping can also cause problems with order management. An incorrect SKU mapped to a product can result in inaccurate inventory tracking and fulfillment errors, leading to delays and, ultimately, unsatisfied customers.

Challenge #8: Expanding Product Portfolios

Expanding a product line or setting up a new warehouse requires strong and effective management of inventory stocks. Having it done manually can surely lead to mismanagement; why so? This is because the inventory managers are required to have order tracking, maintain shipping details, and have an eye on the currently available stocks to allocate the same for rising customer demands. Having an automated system can be the right way to expand product portfolios.

Challenge #9: Inventory Loss

Wastage in inventory is often overlooked until it shows up as losses on the balance sheet. Poor inventory management can result in damage or defects during the product life cycle. Inefficient tracking can lead to missing inventory, causing further losses if not noticed. These inefficiencies can significantly impact the bottom line.

Read how brands like Ellana and Edamama solved their inventory management challenges in the Philippines.

As a business owner, you require robust software to manage complex logistics and seamlessly integrate with your existing business processes. However, choosing the right inventory management solution from the hundreds available can be challenging, particularly with the need to master a range of features that require training and ongoing support.

But what should be kept in mind while finding the right solutions to overcome the above-listed challenges? Here’s what you need to know!

Choosing the Right Inventory Management Solutions in the Philippines

• Integrations
• Multi-location Sync
• Extensive Dashboard for Reporting
• Product Barcoding
• Product Bundling

A comprehensive inventory management system is crucial for any business. The right solution can provide valuable insights into your stock, enabling effective management and identification of any potential obstacles to success. This can help ensure timely deliveries and maintain customer satisfaction.

When choosing an inventory management solution, it’s important to consider the following essential features:

Integrations

Having an inventory management system in place is not enough for a successful business. It’s important to ensure that all necessary integrations are in place, including an ERP solution, a comprehensive point-of-sale system, accounting software, and strong logistics.

This should also include integration with leading marketplaces, websites, and carts such as Lazada, Shopee, Shopify, and Magento, and with logistics providers such as J&T and Ninjavan, and with ERP systems like SAP, Infor, and Microsoft.

Multi-location Sync

Having your presence on a single channel isn’t enough to grab the eyeballs; make sure you have omnichannel visibility with a marketplace sync. This includes a strong presence on both digital and offline channels.

An inventory management system can facilitate efficient omnichannel operations, such as centralizing inventory across online and offline channels, optimizing inventory allocation for a higher return on investment, and improving inventory turnover while reducing working capital. The system can also allow for effective order routing based on inventory availability.

Extensive Dashboard for Reporting

An all-encompassing report dashboard is crucial for monitoring and analyzing business performance, including metrics such as growth, profitability, loss, holdbacks, customer feedback, data usage, and more. These dashboards also provide real-time data synchronization and inventory updates on marketplaces.

Not only do these updates help you avoid loss of sales and delays in delivery, but they also lead to improved customer satisfaction. Ensure that you have access to a comprehensive dashboard that presents all of this information in a single, easily-readable view.

Product Barcoding

Barcoding software is an essential tool for reducing data entry errors, automating internal processes, and ensuring accuracy and efficiency in inventory management. The use of barcode software often integrates with digital documentation and reporting features, allowing for a more streamlined and efficient workflow.

Integrating a mobile barcoding device can significantly enhance inventory accuracy and speed up back-end processes, reducing manual labor and shifting towards a more paperless documentation process.

Explore our platforms:

• Integrated logistics management system
• Automated payment reconciliation system

Recommended read:

• Inventory Management challenges & solutions
• What is Warehouse Management System
• Logistics Vs Supply Chain Management
• What is Order Management

The post Maximizing Efficiency in Manual Inventory Management in Philippines: Challenges and Their Solutions appeared first on unicommerce.com.

Inventory management is all about getting the right things to the right place at the right time and in the proper condition. However, it is much easier said than done. There are several stages before a product reaches its final destination, such as warehousing and shipment, which can be complex and require careful planning. That’s why having an effective inventory management strategy is crucial for e-commerce businesses. 

This blog will go over the importance of inventory management software for your e-commerce operations and the benefits that an efficient inventory management system brings to your organization!                                   

What is the Importance of E-commerce Inventory Management? 

Inventory management is crucial for e-commerce businesses as it helps optimize stock levels, minimize inventory costs, prevent stockouts, and ensure timely order fulfillment. Effective inventory management leads to improved customer satisfaction, reduced wastage, increased profitability, and better working capital for businesses.

For example, let’s consider an online retail store that sells various products. Without proper inventory management, the store might face several challenges, such as stockouts, where fast-selling items run out of stock, and customers are unable to purchase them; this will result in lost sales and dissatisfied customers. 

On the other hand, if you have excessive inventory levels, it can tie up valuable capital, increase holding costs, and lead to potential losses due to expired or obsolete products. Therefore, implementing an effective inventory management system can help the retail store avoid these challenges and optimize storage space. 

The Crucial Role of Inventory Management Software for E-commerce Businesses

Effective inventory management demonstrates the significance of proper real-time stock management, which can be accomplished by using dedicated e-commerce inventory management software. In comparison to manual data encoding, automation is always preferable. 

Even if your company can survive on manual data encoding, other formulas based on prices are challenging to implement. This software will streamline your customer service and make transactions seamless.

On average, inventory is accurate just 63% of the time for retail. Thus, good inventory management software should:

• constantly update your e-commerce business’s data in real-time, 
• reduce human error risk, 
• be more accurate and quicker in tracking orders, 
• predict your profits and losses and 
• ensure warehouse control and customer, supplier, and distributor management.

Having centralized e-commerce inventory management software is critical for warehouses, retailers, and customers alike. This tool ensures that all packages and shipments are tracked and monitored in real-time. To streamline your services and maintain a continual connection with your clients, you should use the most up-to-date supply chain management technologies on the market.

How Can a Robust Inventory Management Software Empower Your E-commerce Business?

Here’s how an effective e-commerce inventory management system can take your business operations to new heights:

1. Streamline Inventory Control and Purchasing: You may be able to specify minimum inventory levels for each item, depending on the inventory software you employ. It will enable you to quickly examine the list of products below that level and place and send fresh purchase orders.

2. Enhance Supplier Management and Ordering: If your reports are generated by advanced inventory management software, you can also check if you have products on order with a supplier and if your supplier has inconsistent deliveries of finished goods. This knowledge is essential if you want to keep procurement and reordering under control.

3. Accurate Information: Sharing accurate information is essential for running a profitable business. Thus, you should use a software system that interfaces with everything from integrated accounting to barcode scanners. As a result, your system will reflect the actual situation on the ground.

4. Boost Employee Efficiency: If your employees know that the inventory management system is constantly updated, they will have more confidence in the software and use it for all tasks. You will have better data due to the improved reporting and efficiency across the organization.

5. Saves Time and Resources: Since many time-consuming inventory management processes are now automated, it saves employees time and allows them to focus on other activities. Furthermore, human error gets removed from the equation to a much greater extent. As a result, these systems reach a better level of precision. 

What are the Benefits of Inventory Management System?

Listed below are the benefits of using an effective inventory management system:

1. Greater Efficiency and Productivity – Effective inventory control leads to better storage management, which means that products can be easily located, collected, and packed, as well as supplied to buyers as quickly and efficiently as possible.

2. Customer Satisfaction – When you have the right amount of inventory available, you will be able to fulfill orders faster. This will build trust in customers and may assist you in turning a one-off customer into a repeat customer. The more accurate your inventory management is, the more aligned you will be with customers’ expectations about the availability of the product.

3. Increased Visibility – Efficient inventory management ensures that you make better and quicker decisions. Tracking inventory becomes transparent, and you will know the number of products that are within the warehouses, how many orders came, what was shipped, what was returned, and where are possible stock-outs.

4. Increased Revenue and Profit Margin – Poor stock management can cause revenue losses. You can avoid errors such as stock-outs and overstocks by properly forecasting the correct amount of your inventory. You can lower your cost by reducing supplier lead time. It can be made possible by improving inventory management in the supply chain.

Let’s Make E-commerce Inventory Management Easier!

An inventory management system enhances efficiency in all areas of the e-commerce business. If you work with a warehouse that uses cutting-edge, real-time inventory management technologies, you will be able to keep your consumers satisfied. In short, by prioritizing inventory management and leveraging robust inventory management software, you can unlock operational success, meet customer expectations, and stay ahead in the competitive e-commerce landscape of 2023!

Schedule a FREE demo with Unicommerce Inventory Management consultants.

Related Read:

• FMCG Industry challenges in India
• Healthcare Industry: Trends, Challenges, Opportunities & Solutions
• What is Warehouse Management System?
• Logistics vs Supply Chain Management
• E-commerce Apparel Industry: Trends, Challenges, Opportunities & Solutions
• Order, Inventory, And Logistics Management In The UAE – Challenges & Solutions Associated With The Processes
• What is Inventory Cycle Counting & Why to Use it for Effective Warehouse Management?
• How can you Streamline Inventory Management using Barcode Scanning?
• How to Implement a Barcode System with Inventory Management Solution?
• Overcome Inventory Challenges With FIFO Based Picking
• UniShip – Advanced Logistics Tracking Platform
• UniReco – Automated Reconciliation of Orders, Returns and Payments
• Key Challenges & Benefits of Marketplace Payment Reconciliation
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