Logistic management tips for the busiest seasons!
The holiday season means the best business seasons for a retailer. With a splurge in sales amount and an increase in consumer reach, it is also the worst season for retailers. This is not limited to brick and mortar stores, but is equally applicable to online shopping. The holiday sales are expected to increase every year. In addition to the same, the best services are expected from online shopping. Apart from the free shipping, free returns and quick delivery, customers now expect outstanding services that include one day delivery.
One of the most important concerns here is the inventory. It is essential to have enough products in stock when customers come looking for it. Inventory management is a tricky business, it involves holding enough stock to help you get through the holiday rush, yet not stocking more than necessary. Maintaining the right balance is essential and difficult.
Here are a few tips to help you through the busiest business seasons:
1. Estimate the seasonal demand:
One of the first steps to prepare for a holiday rush, is to estimate the seasonal demand. This can be done by studying the previous year figures and determining the most sold products in the year. If the majority of your income is limited to a few products, then set them as high priority and stock the same.
2. Know your current stock:
Before you begin to stock up on inventory, check with your inventory management software to learn about how much do you already have. A close check on the inventory ensures that there are lesser chances of overstocking or under ordering for the season.
3. Avoid the bottlenecks:
You may be ordering various goods internationally and this could lead to a delay in the demand supply chain. During the high demand period, the product availability and the response time can become an issue. To offset the lead time, it is ideal to pre-load the seasonal pushes for direct distribution to the stores. This will save on time and also ensure quick delivery.
4. Update the inventory management software:
The most important way to reduce time and efforts is by running a reliable and quick inventory management software. There are a variety of software available in the market, they help with quick access, analysis and management of inventory. If you already use one, make sure to update it before the season rush begins. Also, if you plan to sell your products through multiple channels, it will be impossible to work without a software.
5. Do not completely rely on Just in time logistics solutions:
When you promise the same day or two-day delivery, you are highly relying on the third party which includes logistics and transportation. Even if you provide optimum customer service, the delivery will depend on the third party, which could hamper your sales for the season.
6. Seek cash infusion to help you with the fund:
Look for alternatives that help you with quick purchases as well as maintenance of inventory. Seek for a cash infusion in your business that will help you with the busy season and also make it easier for you to hire more people if a need arises.
7. Update your inventory process:
Do you have enough space to keep a stock of your inventory? If not, rent a warehouse for a temporary period of time and move your inventory there. With an increase in purchases for the season, you will need additional space to store the same.
8. Link the inventory management application to your shopping cart:
This is a quick and efficient method of working in case of online shopping. With the development of high-end software, it is much easier to link the shopping cart with your inventory management application so that there is no wastage of time and the entire process runs smoothly as well as quickly. You can also add an “out of stock” note or a “low stock” note which will help the customer to plan their purchases with ease.
With a good team and a strategic plan, you can maximize your sales as well as profits for the holiday season. The busiest business season can become one of the best seasons with appropriate planning. It is equally important to note that the right inventory software will go a long way, you need to tap into the right channels for purchase and connect to third parties that deliver high service and ensure optimal performance. The tips for planning will help you throughout the year and ensure good business for all seasons.
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