This improves the customer experience by eliminating buyers’ risk of browsing (and falling in love with) out-of-stock items.Īnd since real-time inventory management systems alert brands when inventory levels are low, you’re much less likely to sell out. Real-time inventory ensures that customers have a transparent view of what you actually have ready to purchase. That way, you protect your profit margins by proactively eliminating dead stock and avoiding unnecessary holding costs. Because you identified this challenge immediately, you can quickly spin up a marketing promotion to strategically increase demand for this product. Have more units than this calculated optimal inventory levels? A real-time inventory management system will automatically calculate the optimal inventory level based on this new demand. ![]() Say you see demand drop off for a product. With this information, reducing excess inventory and optimizing your inventory levels becomes easy. Optimize inventory levelsīy definition, real-time inventory management provides full visibility into your stock levels and each SKU’s performance. Worst part? With real-time inventory, they could’ve spotted that the SKU was running low and avoided missing out on this revenue. This alone is a huge benefit for retail brands because stockouts mean lost revenue.Ĭrossnet recently shared that stockout on their 2nd bestseller for a few weeks cost the brand $250k. That way, you can place production orders with plenty of time to offset supply chain risks and avoid stockouts. These alerts ensure you always replenish inventory at the right time. ![]() And the best solutions will even notify brands long before they run out of stock. Real-time inventory management systems constantly monitor your stock levels. But ultimately, these benefits can be translated into increased inventory accuracy and on-demand access to inventory management KPIs (AKA, more inventory control). Real-time inventory has big benefits, including avoiding stockouts, optimizing inventory levels, improving customer satisfaction, and more. What are the benefits of having a real-time inventory process? And as a result of cutting costs, you improve margins, boost revenue, and free up more cash flow. That way, you avoid ordering slow-moving SKUs or seasonal items that rack up holding costs and may turn into dead stock.Īll that’s to say: Having real-time inventory ensures inventory accuracy and helps you avoid common inventory mistakes. Plus, since these solutions rely on real-time and historical data, you can make more accurate predictions for restocking. This makes optimizing inventory levels (so there’s not too much or too little) easier because you only order the items you actually need. Both of which cost your brands big.īut with a real-time inventory process, you always know exactly how many units you have on hand and where they are in the supply chain journey. And those mistakes can equate to stockouts and overstocking. When brands manually track their inventory, it leaves room for error. ![]() Why is real-time inventory management important? That way, Caraway always knows what’s in stock, which SKUs are performing best, and where available units are along the supply chain. Most retail brands use real-time inventory management systems that help them leverage real time information to inform their operational decisions (as opposed to the manual process, which relies on periodically updating spreadsheets with already out-of-date data).įor example, the popular DTC cookware brand Caraway uses Cogsy to track its inventory in real-time. However, keeping tabs on your real-time inventory is easier said than done. To better respond to customer and supply chain needs, brands optimize their retail inventory management processes to automate the way they track, update, and manage SKU levels. Real-time inventory refers to your actual stock levels and their location at a given time. With this information, you can streamline your decision-making process.įor instance, if you see an SKU running low, you can replenish it long before a stockout happens.īut how does real-time inventory even work? What are the benefits? And how do you choose the right real-time inventory management systems? Let’s find out. How? By always knowing how much inventory you have on hand to meet customer demand. With real-time inventory, retail brands like yours can track and optimize their stock levels in real time. We provide 7 software solutions to help your business. Real-time inventory management is an important aspect of optimal retail operations.
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