Inventory management: collecting data for decision making
Inventory planning doesn’t have to be a guessing game. With inventory management software, retailers have more information at their finger tips than ever before and they can use this data to help make informed inventory planning decisions.
Which items are the fastest moving ones? Which are the slowest? When should retailers place new orders? When should they stop stocking a product and look for a new SKU to fill its place? When do customers make purchases? How many items do customers purchase per order? These are all questions that can be answered with the right data points and in turn can be transformed into actionable insights for inventory planning.
It doesn’t have to stop there either, there are numerous obscure data points that merchants can use to improve their inventory management decision making.
“Additionally, data relating to climate and weather is also useful,” Practical eCommerce added. “Some retailers are now looking into weather analytics so they can predict shopper behavior as well as product demand – and stock up when necessary.”
eCommerce operations thrive on data, and inventory planning is no exception. Merchants can see everything from which items customers looked at to when they decided to leave the website. By utilizing all the information at their disposal, retailers can really fine-tune the way they utilize their inventory.
Inventory planning often makes or breaks a merchant. Offering a broad selection of items or unique products not found elsewhere can be a significant selling point for any retailer. Conversely, running out of stock or having a track record of not having a great inventory selection can be a huge detriment. By utilizing all the different data at their finger tips, retailers can maximize their inventory management and satisfy their shoppers as well.