The post The Challenges of Multichannel Inventory Management and How Can D2C Brands Overcome Them in 2023 appeared first on unicommerce.com.

FIFO Based Picking for Inventory Management in the Warehouse

Many retailers, wholesalers, manufacturers or even e-commerce sellers have hundreds of locations to carry thousands of items. But majorly face these three specific challenges with the inventory-

• Out of Stock
• Shrinkage
• Outdated

Stock rotation to avoid loss due to out of date inventory is the prime issue companies face which even digs them into huge losses if not managed efficiently in time. Many businesses have the inventory with an expiration date. So, shipping the items on the principle of “First in, First Out“, protects the product quality and freshness. Using FIFO, you can ship products relatively in neat and clean boxes, as products would have spent less time in your warehouse.

Companies that sell perishable products, such as food products, medicines or in trend fashion accessories, apparels, footwear etc. commonly follow FIFO as their method for inventory valuation.

For example, a medical store purchases medicines at regular intervals to stock its shelves. As customers purchase medicines, the stockers push the oldest medicine carton to the front of the shelf and replace medicines with new MFG date behind those cartons. The cartons of medicines with the nearest expiration dates are sold first, whereas the ones with later expiration dates are sold after the older medicines. This ensures that the first products purchased will be the first products sold!

Read: How Urban Company Achieved 8X Growth in 27 Months with Unicommerce’s Warehouse Management Solution!

Benefits of Adapting FIFO Inventory Software based Picking in Warehouse

1. Reduce Inventory Loss Due to Obsolescence

Outdated or obsolete products aren’t an issue for most of the industries. But for those who deal in perishable products, to remove the outdated inventory is the costliest and most unnecessary task in a warehouse. Use of FIFO in such industries ensures the products to be picked and shipped as quickly as possible.

2. Improved Customer Experience

Reduce the number of incidents where customers can receive an older, obsolete product due to improper rotation of stock in your warehouse. With FIFO you can now ensure a better user experience and deliver a fresh product which is cleanly packed.

3. Warranty Control Improvements

With FIFO implemented in your warehouse, define Shelf life, Expiry, Manufacturing Date & Tolerance. This will eliminate incidents of shipping products that are close to or past warranty expiration.

4. Make Your Warehouse Stock Rotation Efficient

Implementing FIFO will ensure that you ship the most recent and desirable products to your customers. It is the most widely used inventory valuation method as it is practically much easier and safer for companies to opt.

Related read – How FIFO & FEFO Methods Minimize Stock Losses for Business

Let’s Manage Inventory Smartly!

By implementing FIFO, businesses can effectively overcome common inventory challenges, streamline operations, and ultimately contribute to higher customer satisfaction and profitability. Adopting such a robust system is vital for the success of any inventory-dependent business.

More resources:

• • • Top Multichannel Inventory Management Challenges and Solutions
    • Inventory Management Software – Top 9 Benefits
    • Top Challenges & Solutions of Inventory Management
    • Why do e-commerce businesses need Inventory Management Software?
    • Types of Inventory Management Techniques
    • UniShip – Advanced Shipping Tracking Platform
    • UniReco – E-commerce Marketplace Payment Reconciliation
    • Key Challenges & Benefits of Marketplace Payment Reconciliation
    • Benefits of Shipping Notifications
    • E-commerce Shopify Integration with Unicommerce

The post FIFO based Picking in Warehouse – How to Overcome Inventory Challenges to Maximize Efficiency? appeared first on unicommerce.com.

FMCG Industry in India

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector. Consumer-oriented growth and increased prices, particularly for essential products, fueled the growth of the Fast-Moving Consumer Goods (FMCG) industry in India. 

• The FMCG sector achieved a milestone of US$ 56.8 billion by December 2022. 
• Forecasts indicate that the total revenue of the FMCG market is expected to experience a Compound Annual Growth Rate (CAGR) of 27.9% from 2021 to 2027, eventually reaching a value of approximately US$ 615.87 billion. 
• In 2022, the urban sector accounted for 65% of the overall annual FMCG sales, while rural India contributed over 35%.

Household and personal care products make up 50% of the industry’s sales, healthcare claims 31-32%, and food and beverage products account for the remaining 18-19%, which makes it evident that these sectors play a pivotal role in shaping the nation’s economic landscape. 

Within this ever-expanding and dynamic industry, the warehouse serves as the beating heart that connects manufacturers, distributors, retailers, and, ultimately, the end consumers, ensuring seamless e-commerce operations. 

So let’s uncover the true significance of warehouse management in propelling the FMCG sector toward success!

FMCG Industry in India – Major Challenges

• Limited Storage Space
• Seasonality and Demand Variability
• Product Shelf Life and Fragility
• Regulatory Compliance and Quality Control

Operating a warehouse for fast-moving consumer goods brands or FMCG products comes with its fair share of challenges. Let’s explore some of the significant warehouse challenges faced by FMCG brands :

1. Limited Storage Space

One of the primary challenges faced by these brands is the constraint of limited storage space in warehouses. With an ever-expanding product range and increasing consumer demands, finding sufficient space to store inventory becomes a critical concern. Inadequate storage capacity can lead to overcrowding, disorganized stock, and inefficient picking and packing processes. Also, it restricts the ability to maintain optimum stock levels, resulting in stock outs or overstock situations.

2. Seasonality and Demand Variability

FMCG brands often face fluctuating demand due to seasonal variations and ever-changing consumer preferences. This poses a significant challenge when it comes to forecasting and managing inventory levels. During peak seasons, brands must ensure they have enough stock to meet the heightened demand while avoiding excessive inventory that may lead to waste and additional storage costs. 

3. Product Shelf Life and Fragility

Many FMCG products, particularly perishable goods, and fragile items, have limited shelf life or are sensitive to handling and storage conditions. Maintaining product quality and reducing waste are essential for businesses. Inadequate temperature control, improper handling, and suboptimal packaging can result in spoilage, damage, or expiration of goods. 

4. Regulatory Compliance and Quality Control

FMCG brands operate in a highly regulated environment, subject to various industry standards, safety regulations, and quality control measures. Compliance with these regulations is crucial for maintaining consumer trust and avoiding legal consequences. For example, brands selling food products must effectively manage product expiry dates to ensure consumer safety and satisfaction.

Evolving Practices as a Solution to Challenges in the FMCG Industry

• Efficient Stock Control and Optimization
• Space Utilization and Layout Planning
• Quality Control Measures for Ensured Excellence
• Order Fulfillment with Precision and Speed
• Data-Driven Demand Forecasting for Success
• Efficient Handling of Returns and Refunds

Warehouse management plays a crucial role in the fast-moving consumer goods industry. Let’s explore the key aspects and significance of warehouse management in these industries:

1. Efficient Stock Control and Optimization

Maintaining accurate inventory levels is important for FMCG companies. A robust warehouse management system (WMS) uses advanced technologies such as barcode scanning at batch, SKU (Stock Keeping Unit), and item levels to monitor inventory levels accurately. 

These technologies enable real-time visibility into stock levels, helping companies identify and address any discrepancies or shortages promptly. By maintaining accurate inventory records, your business can avoid stockouts, reduce excess inventory, and minimize the risk of product expiration.

Suggested reading: What is a Warehouse Management System and How Does It Work?

2. Space Utilization and Layout Planning

Efficient space utilization within the warehouse is very important for FMCG brands, as they often deal with a large volume of products. Warehouse management systems help optimize the allocation of space by providing features like shelf management. 

This feature enables brands to strategically organize products and implement efficient storage techniques. By doing so, e-commerce businesses can maximize their storage capacity, minimize waste, and streamline their picking and packing processes.

3. Quality Control Measures for Ensured Excellence

The satisfaction of customers is closely tied to the quality of a product. To achieve excellence, a robust WMS incorporates several quality control measures such as cycle counting, expiry management, batch management, and more. Cycle counting involves periodic inventory level checks to identify discrepancies. Expiry management is another critical aspect of warehouse management that prevents selling expired goods, monitoring dates, and following the FIFO or FEFO approach.

With sophisticated WMS using batch management, brands can identify which goods are suitable for sending to B2B (retail stores) and which are more suitable for marketplaces or direct-to-consumer (D2C) channels. For example, B2B retailers need products with 70%+ shelf life, while D2C customers accept shorter shelf life (30-40%) for quick consumption. By sorting products into batches, brands send appropriate batches to each channel. 

4. Order Fulfillment with Precision and Speed

FMCG products are typically everyday items consumers rely on for daily needs. Timely and accurate order fulfillment ensures that customers receive their desired products. With the help of optimized picking strategies and strategic product bundling, companies can minimize the time and effort required to locate and retrieve products. 

Warehouse management systems integrated with logistic providers allow seamless order processing and accurate picking. These integrations facilitate precise and speedy order fulfillment, ensuring that customers receive their products timely.

An excellent illustration of the effectiveness of product assortments and picking can be seen in the success of The Man Company, which achieved a remarkable order fulfillment rate of 99.99%+ using the bundling feature of Unicommerce. 

5. Data-Driven Demand Forecasting for Success

FMCG businesses operate in a fast-paced environment where consumer demand fluctuates rapidly. Accurate forecasting helps companies understand consumer preferences, anticipate future demand, and plan production and inventory levels accordingly. 

A WMS with strong and dynamic reporting capabilities allows businesses to generate comprehensive reports highlighting key performance indicators (KPIs) and trends. These reports can include data on sales orders, stock levels, top-performing channels, categories, products, etc. By leveraging these reports, companies can make informed decisions about inventory replenishment and production planning. 

A notable example of the power of accurate reporting and analysis is exemplified by Marico Limited’s partnership with Unicommerce. Leveraging Unicommerce’s error-proof reports and analysis, Marico Limited achieved an astounding 100X growth in sales.

6. Efficient Handling of Returns and Refunds

Efficient handling of returns and refunds is a critical aspect for e-commerce businesses, especially when it comes to FMCGs brands. These businesses understand the importance of prioritizing product quality and safety, which should be reflected in their return policies.

A well-organized warehouse management system can streamline the return process and ensure quick resolution. It enables efficient tracking of returned products, accurate inventory management, and timely inspection of returned items for quality control. 

Let’s Make Warehousing Easier for Your FMCG Business!

The fast-moving consumer goods industry relies heavily on efficient warehousing to ensure seamless supply chain management and meet the demands of consumers. This industry encompasses a wide range of sectors, including food and beverages, personal care products, household goods, and pharmaceuticals, among others. 

By addressing the challenges, implementing effective strategies, and leveraging an all-in-one warehouse management system, you can streamline your e-commerce operations and propel your FMCG business toward growth and profitability!

Some FAQs related to FMCG Industry & Role of Warehouse Mangement –

Q: What is the FMCG industry in India?
A: The FMCG (Fast-moving consumer goods) industry in India comprises companies that produce and distribute consumer goods with a relatively short shelf life. These goods are typically consumed on a frequent basis and include products such as food and beverages, personal care items, household cleaning products, and toiletries.

Q: What are the roles of warehousing in the FMCG industry?
A: Warehousing plays crucial roles in the FMCG industry, including: Storage and inventory management, Order processing, Distribution support, Supply chain efficiency, etc.

Q: What is an FMCG warehouse?
A: An FMCG warehouse is a specialized storage facility designed to accommodate fast-moving consumer goods. It is equipped with features and infrastructure tailored to meet the specific requirements of the FMCG industry, such as temperature-controlled areas, racking systems, and efficient handling equipment.

Q: What is the role of logistics management in the FMCG industry?
A: Logistics management in the FMCG industry involves planning, coordinating, and controlling the flow of goods from their point of origin to the final destination. It encompasses activities such as transportation, inventory management, order processing, and warehousing. The role of logistics management is to ensure the timely and cost-effective delivery of FMCG products while optimizing the overall supply chain.

Q: What are the four categories of FMCG?
A: The four categories of FMCG products are: Food and beverages, Personal care products, Household cleaning products,Tobacco and cigarettes.

Q: Which is India’s No. 1 FMCG?
A: As of September 2021, Hindustan Unilever Limited (HUL) is considered one of India’s leading FMCG companies and has been consistently recognized as a significant player in the FMCG industry.

Q: Which FMCG product is most profitable?
A: The profitability of FMCG products can vary based on various factors such as brand positioning, market demand, pricing strategies, and production costs. It is difficult to pinpoint a specific FMCG product as the most profitable as it can change over time. Some examples of FMCG products that have traditionally shown good profitability include personal care items like cosmetics, skincare products, and certain food and beverage items with high consumer demand.

Explore our platforms:

• NDR Management Platform
• E-commerce Payment Reconciliation

Related read –

• Healthcare Industry: Opportunities, Challenges & Solutions
• How does Warehouse Management System Works?
• Logistics vs Supply Chain Management
• Apparel Industry in India: Trends, Challenges, Opportunities & Solutions
• Footwear Industry in India – Trends, Challenges & Solutions

Uncover Leading Brands Success with Unicommerce! –

• Mamaearth Attained 99.99% Order Fulfillment Rate
• Upscalio Achieved a 99%+ Order Fulfillment Rate with 100%+ Order Growth
• Dhani Healthcare Streamlined Operations Across 166 Facilities
• Urban Company Achieved 8X Growth in Sales Volume
• Plum Goodness Streamlined Inventory Operations with 69% Growth Rate in Sales
• Bulbul Simplified Selling Across 200+ Vendors
• Chumbak Lifestyle Boost Sales Across 58+ Retail Stores
• TCNS Achieved 9X Growth in Sales
• Hamilton Housewares Attained 96%+ Pick Accuracy Rate

The post FMCG Industry in India: Trends, Challenges, Solutions appeared first on unicommerce.com.

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.

Understanding Inventory Management

Inventory management is the process of ordering, keeping, using, and selling a company’s inventory. This includes keeping track of raw materials, parts, and finished goods and storing and working with them.  

One of a business’s most important assets is its inventory. In industries with a lot of inventory, like retail, manufacturing, food services, and others, the main things that a company sells are its raw materials and finished goods. Insufficient stock availability at the required time and location can lead to significant challenges.

On the other hand, inventory can be seen as a debt, though not in a financial sense. If you have a lot of goods, some of them might go bad, be stolen, get damaged, or become less popular. Inventory needs to be protected, and if it doesn’t sell by the due date, it might have to be thrown away at low prices or even destroyed.

How the pandemic has affected the Supply Chain Industry

According to Zippia, the COVID-19 pandemic has created a total shift in the supply industry:

• Because of the COVID-19 outbreak, 38.8% of small businesses in the U.S. had problems with their supply chains.
• The global supply chain market is projected to grow at 11.2% per year from 2020 to 2027.
• There are $15.85 billion worth of supply chain markets around the world.

Despite the outbreak, there are still some noteworthy changes that can impact how the industry operates. This can create more opportunities for inventory management to be more helpful. 

Importance of Inventory Management in E-commerce

E-commerce businesses must go hand in hand with inventory management for plenty of reasons, including: 

• Helps in optimizing stock levels 
• Reduces inventory costs
• Prevents stockouts
• Ensures timely order fulfillment

Adhering to these can result in the following:

• Improved customer satisfaction
• Reduced wastage
• Increased profitability
• Better working capital for businesses

Challenges of Inventory Management in E-commerce

Keeping track of inventory takes a lot of work. The process and the outcomes have an impact on everything in your business.Here are a few of the common inventory management challenges every business must watch out for:

• Inaccurate data – Inventory is something you need to know about all the time. No longer is it possible for everyone to work together to count goods once a year.
• Changing demand – Customer needs are constantly changing. If you keep too much, you might not be able to sell old stock, and if you keep too little, you might not be able to fill customer orders. Ordering strategies for essential things and the tools to make and carry out an inventory plan can help adapt to changing demand.
• Manual documentation – Managing supplies using paper forms and other manual methods is time-consuming and unsafe.  Adding more stores with lots of stock is also a lot of work.
• Insufficient order management – One of the most complex parts of good inventory management is ensuring you sell only a few items and run out of stock. You can correctly guess what customers will order by looking at historical and seasonal data trends.
• Inconsistent tracking – Keeping track of inventory using different tools and spreadsheets by hand takes a lot of time, is repetitive, and can lead to mistakes. A central method for keeping track of inventory that includes accounting tools can help any business, no matter how small.

This guide will discuss many aspects of managing inventory in e-commerce, from basic ideas like the different kinds of inventory and how to value them to more complex strategies for predicting demand and keeping up with technological advances. 

Fundamentals of E-commerce Inventory Management

As business owners, understanding the basics of e-commerce is vital to achieving seamless operation and success. 

Here are the main ideas and parts that make up good inventory management in the e-commerce industry:

1. Types of inventory?

Understanding these types is essential for managing inventory well. The following are some of the main inventory types:

• Raw materials: These are the materials used to make things. In the industrial world, raw materials are the parts that are put together or changed during production to make the finished product. 

• Work-in-Progress: Items in progress that still need to be done are in this type of inventory. The prices of labor and overhead that come up during the manufacturing process can also be recorded in the work-in-progress (WIP) inventory. 

• Finished goods: This type of inventory is the finished products ready for selling to customers. These products have passed the manufacturing process and are now ready for distribution.  

• Maintenance, repair, and operations (MRO) supplies: Other than the finished product, MRO inventory includes things that are used in the production process. Tools, maintenance supplies, safety gear, and other items in this area are needed for a business to run every day. 

• Packing and packaging materials: Different kinds of packing products are available. The product is protected and can be used after primary packaging. It’s the finished product’s secondary packaging, which may include stickers or SKU information. Transportable bulk packaging is tertiary packing.

• Safety stock and anticipation stock: Safety stock is the extra product that a business buys and keeps on hand in case something goes wrong. Safety stock costs money to keep on hand, but it helps keep customers happy. 

• Decoupling inventory: Decoupling inventory is the term for extra things or work-in-progress (WIP) kept at each station on the production line so that work doesn’t stop. Safety stock is helpful for all businesses, but separating inventory is only applicable for businesses that make things because it helps when different parts of the line work at different speeds.

• Cycle inventory: Businesses buy cycle inventory in groups to get the right amount of stock at the best price for keeping.

• Service inventory: Service inventory is a term used in management accounting to describe how much service a company can offer during a certain time period. Every week, 70 one-night stays are booked at a hotel with 10 rooms, for example.

• Transit inventory: Transit inventory is stock that is moving from the manufacturer to warehouses and distribution hubs. It is also called pipeline inventory. It could take weeks for transit material to get from one facility to another.

• Theoretical inventory: This is the least amount of stock that a business needs to finish a process right away. It is also known as “book inventory.” A theoretical inventory is primarily used in manufacturing and the food business. The real versus theoretical formula is used to measure it.

• Excess inventory: Also called obsolete inventory, refers to products or raw materials that a business still stores but hasn’t used or sold. They don’t plan to use or sell them.

Knowing about these different types of inventory is essential to managing them well, keeping inventory numbers at the best level, cutting costs, and ensuring the supply chain runs smoothly for your business. People with a supply chain management degree online can be reliable in this aspect.

2. Inventory valuation methods

Inventory valuation is an integral part of accounting that affects how a business reports its finances and figures out its taxes. It tells you how much unsold inventory is worth and directly affects the cost of goods sold (COGS), affecting a company’s earnings and taxable income. 

Here are the main ways that businesses figure out how much a product is worth:

• First-In, First-Out (FIFO) – According to FIFO, the oldest items in stock are sold first. The cost of the first things bought or made is considered when calculating COGS (Cost of Goods Sold) using this method. This method works exceptionally well when prices rise because it lowers the cost of goods sold and raises income (and taxes). It is often used for things that go bad quickly or have a short shelf life to keep inventory from going out of date.
• Last-In, First-Out (LIFO) – LIFO says that the items bought most recently should be sold first. The first thing charged as COGS is the cost of the newest items. During inflation, this method can lead to higher costs of goods sold (COGS) and lower income (and lower taxes). International Financial Reporting Standards (IFRS) say it can’t be used, and only a few people do it.

3. Weighted Average Cost (WAC)

For the weighted average cost method, the cost of things sold equals the average cost of all the items in stock. This method evens out price changes because it doesn’t look at the order in which each unit was bought. Some businesses use it when they have a lot of similar things in stock and can’t tell the difference between each unit.

There are pros and cons to each of these methods, and the choice relies a lot on the type of business, the inventory it deals with, and the current state of the economy.

4. Key Inventory Metrics

Key inventory metrics are essential for managing inventory well because they show how efficient, profitable, and healthy a business’s inventory system is. 

Here are some critical inventory indicators that companies, especially those that sell things online, should keep an eye on:

• Inventory turnover rate: This measure tracks how often a company’s stock is bought and returned within a specific time frame, usually a year. A low turnover rate could mean that you have too much inventory or that sales are slow, while a high turnover rate means that you are managing your inventory well and that sales are good. 

• Carrying inventory cost: This metric covers all the costs of keeping inventory, like storage, insurance, wear and tear, obsolescence, and lost opportunities. Keeping these prices as low as possible without running out of stock is essential. Usually, carrying costs are given as a percentage of the total value of the goods.

• Order lead time: This metric shows how long it takes to order with a supplier to get the goods. Shorter wait times can make keeping more safety stock on hand unnecessary and can speed up inventory turnover.

• Stockout rate: A company’s stockout rate shows how often an item is sold out. Regularly running out of stock can cause you to lose sales and make customers unhappy. You understand how thriving tactics for restocking inventory depend on this metric.

Each metric gives a different picture of how well the inventory is doing, and when used together, they can provide a complete picture of how well the inventory management system is working.

Strategies for Effective Inventory Management

It’s essential to keep track of inventory well to keep costs low and meet customer needs, especially in fast-paced, competitive markets like e-commerce. 

Here are some important things that businesses can do to handle their inventory well:

• Accurate demand forecasting – To correctly predict demand, look at past sales data, market trends, seasonal changes, and predictive analytics. This helps keep the right amount of goods on hand, so you stay supplied and have enough.
• Adopt Just-in-Time Inventory – The just-in-time (JIT) inventory plan means ordering goods only when they are needed and keeping stock levels as low as possible. This lowers the cost of storage and transport, but it needs accurate predictions of demand and providers that can be counted on.
• Dropshipping as an alternative – Products are sent straight from the seller to the customer in a dropshipping model. This eliminates the need to keep much inventory on hand and can reduce storage and shipping costs.

Using these tips, companies can improve how they handle their goods, lowering costs, making customers happier, and helping the company grow.

Advancements in Inventory Management

As technology advances, inventory management stays aligned with the latest software and products. The days of keeping records by hand are over; technology has moved us forward. 

Better technology, shifting customer preferences, and the need for more effective operations are all speeding up this change. Here are some of the latest trends in Inventory Management:

1. Cloud-based Inventory Management

Inventory management tools run in the cloud help companies keep track of their stock. 

Benefits are – 

• Accessibility: An internet connection can access your inventory details anywhere.
• Flexibility: You can change cloud-based tools to make them work for you.
• Scalability: Cloud-based inventory management can keep track of items in more than one place.
• Real-time working together: The cloud lets people work together right now.
• Less mistakes: Using cloud-based tools to keep track of your inventory can help you make fewer mistakes.

2. Real-time Analytics and Big Data

Real-time analytics and big data have changed how companies manage their inventory. Businesses can use the power of data to get valuable information about the following:

• How well the supply chain works
• What customers want
• Levels of inventory

It will make things run more smoothly and save money. A business can use information from: 

• Patterns of how customers act
• Outside factors
• Systems for selling things 

Things outside your control, like the weather, can help you get the most out of your goods. It enables you to make changes ahead of time.

Best Practices in E-commerce Inventory Management

For e-commerce businesses to succeed, they need to be able to keep track of their inventory well. Here are some best practices for managing goods effectively and efficiently in an e-commerce setting:

• Regular inventory audits – Check the accuracy of your inventory by doing regular physical checks. Comparing real stock to database records helps find discrepancies so changes and updates can be made quickly.
• Efficient warehouse management – Optimize the functionality of your warehouse by organizing it. Create a layout that makes sense, use the right shelves and storage options, and ensure that frequently sold things are easy to get to.
• Leverage multi-channel inventory management – If you’re selling on multiple sites, ensure all your inventory management is the same and in sync. So, problems like double-selling and running out of stock don’t happen.

Advancing Inventory Management for E-commerce Businesses Can be Helpful for Growth

Today’s continuous growth of e-commerce businesses has opened opportunities for inventory management professionals to step up their game. More and more organizations experience shipping or inventory problems, slowing production.

Thankfully, new technological advancements and trends can level up and create a more seamless operation for any e-commerce business.

Avoid discrepancies by practicing regular inventory audits, promoting efficient warehouse management, and leveraging multi-channel inventory management. Doing so will create a more harmonious workflow for your business.

Related read – 

• Why an Inventory Management Software is a Must-have for an E-commerce Business?
• What are the Benefits of Having Inventory Management Software?
• Why is Inventory Management Important for Your E-commerce Business?
• Choosing The Right Inventory Management System For Your E-Commerce Business
• The Challenges of Multichannel Inventory Management and How Can D2C Brands Overcome Them

The post Inventory Management for E-commerce Businesses: A Complete Guide appeared first on unicommerce.com.

Effective inventory management is vital for several reasons. It helps avoid overstocking or understocking, which can lead to financial losses. By maintaining optimal inventory levels, e-commerce businesses can meet customer demands promptly, enhance customer satisfaction, and boost overall profitability.

So, how can businesses achieve this level of efficiency in inventory management? One of the most reliable and strategic approaches in inventory management is by implementing the FIFO method. Let’s discover how it can revolutionize your inventory management!

What is The First In, First Out (FIFO) in Inventory Management Method?

FIFO, short for First In, First Out, is a method where the oldest inventory items are sold or used first. In other words, the products that enter the warehouse first are the ones that leave first when an order is placed. This method ensures that products with shorter shelf life or those prone to obsolescence are used before newer stock.

FIFO vs. FEFO vs. LIFO: Comparing Inventory Management Methods

Inventory management consists of various methods tailored to specific business needs. Let’s compare FIFO with a couple of other prominent inventory management methods!

1. FIFO vs. FEFO

While FIFO ensures that the oldest items are used first, FEFO takes it a step further by prioritizing products based on their expiration dates. This method is particularly critical for industries with items that are perishable and have limited shelf lives, such as pharmaceuticals, cosmetics, and certain food products. By using the items with the nearest expiration dates first, FEFO minimizes the risk of selling expired goods. It’s essentially a more precise version of FIFO, suitable for highly perishable items.

2. FIFO vs. LIFO

On the other hand, LIFO flips the script. LIFO, or Last In, First Out, means that the most recent inventory items are used or sold first. While this approach may seem beneficial during times of rising costs (as it can reduce taxable income), it can lead to higher holding costs, particularly in industries with products susceptible to obsolescence. It’s an approach less common than FIFO but still has its place in certain contexts.

FIFO in Action: Industries Embracing First In, First Out

FIFO’s versatility makes it an ideal choice for a wide range of industries, including footwear, electronics, fashion, toys, and kitchenware. Notably, companies like Upscalio, a renowned hub for brands, have proactively used FIFO to handle inventory across their brand portfolio.

By identifying products with the nearest expiration, they exemplify the practical application of FIFO in the real world. Through strategic expiry management methods, like FIFO, such forward-thinking companies optimize their inventory, minimize losses, and maintain a competitive edge in their respective industries.

What are the Advantages of Using the FIFO Method for Inventory Management

• Minimizes Product Obsolescence
• Reduces Wastage
• Improves Inventory Accuracy
• Optimizes Storage Space
• Enhances Customer Satisfaction
• Streamlines Order Fulfillment
• Reduces Holding Costs

FIFO offers several advantages for e-commerce businesses, especially in the context of order fulfillment and inventory management. Here are the key benefits of FIFO:

1. Minimizes Product Obsolescence

FIFO ensures that older products are used or sold first, reducing the risk of items becoming obsolete or outdated. This is particularly crucial for industries where technological advancements or changing consumer preferences quickly render products obsolete. In industries like fashion and electronics, where trends and consumer preferences change rapidly, FIFO ensures that older products are sold first.

2. Reduces Wastage

By rotating stock and using older items first, businesses can significantly reduce wastage, especially in industries like fashion, footwear, electronics, etc. These sectors, driven by constantly evolving trends, necessitate regular stock rotation and inventory updates. Such measures help prevent overstocking and mitigate the natural wear and tear of products. This reduction in wastage not only saves costs for the business but also aligns with sustainability goals, reducing environmental impact.

3. Improves Inventory Accuracy

FIFO-based picking methods enhance inventory accuracy. By ensuring that products are used in the order they are received, businesses can maintain precise records of stock levels, minimizing discrepancies and errors in inventory tracking. For instance, by employing FIFO, The Urban Company maintained a seamless record of their service materials, ensuring that older supplies are used first, thereby preventing stockpile errors and maintaining a precise understanding of their resource availability.

4. Optimizes Storage Space

Picking older items first frees up storage space by reducing the amount of excess stock. By adhering to FIFO, businesses can rearrange their storage shelves to prioritize older inventory at the front, ensuring that these items are picked or used first. This reorganization facilitates easier access to older stock, streamlining the retrieval process and reducing the chances of items getting forgotten or misplaced in the back of shelves.

5. Enhances Customer Satisfaction

By consistently delivering fresh and newer products, businesses can enhance customer satisfaction. Customers receive items with longer shelf lives, reducing the likelihood of receiving products close to expiration, which can lead to dissatisfaction and returns. Not only does providing fresh products contribute to customer satisfaction, but it also builds trust and loyalty. When customers consistently receive high-quality, fresh items, they are more likely to return for future purchases. 

6. Streamlines Order Fulfillment

FIFO-based picking simplifies the order fulfillment process. Warehouse staff can easily locate and pick items, reducing picking errors and ensuring that the right products are dispatched to customers. This method also contributes to faster order processing times. By having a clear system in place for selecting items based on their entry into the inventory, warehouses can expedite the fulfillment process, leading to quicker dispatch and delivery of orders to customers.

7. Reduces Holding Costs

FIFO effectively reduces the duration products stay in storage. This reduction in storage time directly lowers associated holding costs such as warehousing fees, utility expenses, and insurance premiums. As products move out of the warehouse more efficiently, the overall financial burden on the company decreases, positively influencing its bottom line.

Let’s Make Inventory Management Easier!

As technology advances and consumer demands evolve, the future of inventory management in e-commerce lies in innovative stock rotation methods like FIFO. Leveraging data analytics and real-time inventory tracking will further optimize efficiency. Investing in a robust inventory management system  will be pivotal for businesses to adapt, thrive, and maintain a competitive edge in the dynamic landscape of e-commerce.

Related read on Inventory Management –

• Challenges of Multichannel Inventory Management
• Why do e-commerce businesses need Inventory Management Software?
• Inventory Management Software – Top 9 Benefits
• The Crucial Role of Inventory Management Software for E-commerce Businesses
• How to Choose the Right E-commerce Inventory Management System?
• FIFO based Picking in Warehouse
• FIFO vs FEFO

The post Why is the FIFO (The First In, First Out) Method a Better Choice for Inventory Management appeared first on unicommerce.com.

More and more brands are shifting towards the D2C model of selling, where they want more customers to engage with their brand website. As brands make this leap into the D2C realm, a common challenge emerges—the need to streamline inventory. 

In order to achieve that, it is crucial that your D2C brand needs comprehensive strategies and tactics to manage your inventory efficiently. In this blog, you’ll learn about the contemporary art of inventory management and build the brand that you seek to build, ensuring a competitive edge in the market.

Strategies and Tactics to Optimize Your D2C Inventory

In your pursuit of a seamless D2C experience, you’ll encounter various challenges that necessitate tailored strategies and tactics. Let’s delve deep into the strategies and tactics that will empower you to conquer the intricacies of webstore inventory management, ultimately setting your brand on a path to success.

1. FIFO, FEFO

FIFO (First-In, First-Out) and FEFO (First-Expired, First-Out) are inventory management methods crucial for industries dealing with perishable or time-sensitive products.

– FIFO (First-In, First-Out): This method ensures that the oldest inventory is sold before the newer ones. It prevents products from becoming obsolete, reducing the risk of waste. For D2C brands, especially in the fashion, footwear, home furnishing, and electronics industries, FIFO helps maintain compliance with quality and regulatory standards. 

– FEFO (First-Expired, First-Out): In industries where product expiration is a critical concern, FEFO is paramount. It prioritizes products with earlier expiration dates, ensuring that they are sold before newer ones, preventing dead inventory in the warehouse. This maintains product quality and compliance and is critical in the FMCG Industry, Healthcare, and Beauty & Personal Care industry. 

The pioneering pet-care brand, Supertails, exponentially reduced the occurrence of expiration and wastage of products by implementing the FEFO strategy, which enabled them to sell their products efficiently and achieve an 18% reduction in returns.

2. Barcode Scanning

Barcode scanning is an essential technology for optimal inventory management in the D2C space. It involves assigning unique barcodes to each product, allowing for accurate tracking and identification. This is particularly beneficial for brands dealing with products that have minor variations.

Furthermore, Barcode scanning streamlines order processing, reduces the likelihood of errors, and enhances inventory accuracy along with the picking process in the warehouse. It enables quick and precise identification of products, facilitating smooth operations from warehouse to customer doorstep.

Many brands, including a leading men’s shoe brand Attitudist, used advanced item traceability at the SKU level to empower their ability to track different aspects of inventory, such as cost, expiry, manufacturing details, etc., and gained complete visibility into the lifecycle of their products, allowing for efficient inventory management and informed decision-making.

3. Real-time inventory management 

In the dynamic landscape of D2C, real-time inventory management emerges as a pivotal strategy. This approach provides brands with instantaneous insights into stock levels, order status, and product movement across various marketplaces and brand websites. For brands navigating the swiftly changing preferences of consumers, real-time inventory management serves as a game-changer.

With this robust system, your brand can consolidate its entire inventory onto a single dashboard, offering a comprehensive overview. This centralized control allows for immediate decision-making, minimizes the risk of stockouts or overstocks, and significantly reduces customer returns. Picture having the ability to track product availability, sales trends, and order fulfillment in real time—all at your fingertips.

Leading D2C players, such as Mamaearth, embraced real-time inventory management to get a  centralized automated system. The result? A streamlined process, optimized inventory levels, inventory allocation for bulk orders, and a 300% reduction in returns, positioning them for sustained growth in the competitive D2C landscape.

4. Demand Forecasting

Demand forecasting involves predicting future customer demand for products based on historical data, market trends, and other relevant factors. It is a crucial aspect of inventory management, enabling brands to align their stock levels with anticipated demand.

For D2C brands with ever-changing trends, accurate demand forecasting is invaluable. It helps prevent stockouts, excess inventory, and missed sales opportunities. By understanding customer preferences and market trends, brands can optimize their inventory levels, keeping inventory slim and ensuring that products are available when and where they are needed. Adopting Demand Forecasting as a strategy can help predict future trends, ensuring that inventory remains relevant and in demand.

The Significance of Optimizing Webstore Inventory

• Gain Deeper Customer Insights
• Improve Operational Efficiency
• Enhance Customer Experience
• Minimize Stockouts and Overstocking

A D2C brand’s evident goal is to strengthen customer relationships and understand what customers expect from a brand. Having delved into Strategies and Tactics to Optimize your D2C Inventory, let’s see why all this planning and execution is crucial. Here are four solid reasons that make streamlined webstore inventory management an absolute game-changer:

1. 1. Gain Deeper Customer Insights: An advanced inventory management tool that can provide detailed sales reports and inventory snapshots in real-time. This comprehensive data allows your brand to understand customer preferences better—filter them from specific SKU’s geographical locations to track product success in the area. Further, you can also get a deeper understanding of your top-selling and slow-moving SKUs, aiding in product development and marketing strategies.
   2. Improve Operational Efficiency: Streamlining inventory processes reduces errors and delays in fulfilling customer orders by empowering the picking process and tracking the flow of the product in real-time. This results in minimal O2S time and fewer customer-initiated returns (CIR), thus enhancing operational efficiency.
   3. Enhance Customer Experience: Seamless inventory management minimizes stockouts and ensures product pricing remains constant across different marketplaces and your D2C website. This ensures customers find exactly what they are looking for. Moreover, automating inventory prevents delays and disruptions in processing orders efficiently, ultimately leading to higher customer satisfaction and greater brand loyalty. 
   4. Minimize Stockouts and Overstocking: Well-managed inventory significantly lowers warehousing expenses by reducing overstocking of slow-moving SKUs and stockouts of fast-selling SKUs. This allows for a more optimal use of your company’s resources while maximizing revenue. The strategic alignment of inventory with actual demand not only ensures resource efficiency but also captures every sales opportunity while avoiding revenue loss from dead stock or missed sales due to stockouts.

By employing a sophisticated Inventory Management System tailored to D2C operations, your brands can effectively address these crucial aspects, ensuring a competitive edge in the market.

Conclusion 

Optimizing webstore  inventory management is a critical endeavor for brands looking to thrive in the competitive e-commerce landscape. By understanding the unique challenges associated with D2C operations and implementing tailored strategies and tactics, brands can streamline their inventory processes, enhance customer satisfaction, and ultimately drive business growth. Embracing the contemporary art of inventory management is not just a strategy; it’s a pathway to building a resilient and customer-centric brand in the D2C era.

The post How to Optimize D2C Inventory Management: Strategies and Tactics appeared first on unicommerce.com.

Currently, the trends are shifting towards organic and natural products, along with an increased demand for Men beauty essentials, which underscores the new customer’s need for more personalized products. However, opportunities come with a set of challenges. Many brands have trouble coordinating the inventory across offline stores and online channels, including batching the inventory and expiry circulation of products, which leads to ineffective customer return management.

In this blog, we’ll delve into the exciting world of the cosmetics industry in India, exploring its trends, challenges, and realistic solutions in detail that would shape the future of your brand.

Trends and Opportunities in the Indian Cosmetics Industry

1. Growth of Natural and Organic Products

One of the most prominent trends in the Indian cosmetics industry is the shift towards natural and organic products. Consumers are increasingly seeking products with fewer chemicals and more natural ingredients. Take Mamaearth, for instance, a brand of the parent company Honasa Consumer, which progressed after the COVID-19 pandemic with a mission to provide 100% natural and toxin-free products with a blend of natural ingredients. Mamaearth’s dedication to providing customers with what they want resulted in a 400% growth amid COVID-19.

This inclination towards natural beauty has paved the way for homegrown brands that emphasize the use of herbal and organic components, which also makes the trend ever-relevant in the cosmetic industry.

2. Digital Influence on Beauty Choices

The digital age has brought about a revolution in the way consumers discover and purchase cosmetics. Social media influencers and beauty bloggers play a pivotal role in shaping consumer preferences and many brands promote their products in this way. Can you guess some of these brands?

In the vibrant realm of cosmetics, titans like Nykaa and Lakmé have carved their mark, particularly in the dynamic world of social media. Here, beauty enthusiasts seek recommendations tailored to diverse skin types and tones. These brands have recognized the immense potential of social media and influencers and used this power to create beauty products that cater to customers’ individual needs.

3. Male Grooming on the Rise

 The male grooming segment is witnessing significant growth. The Man Company, among many brands, realized that men are now more conscious of their appearance and are willing to invest in grooming products. This shift in mindset has opened up a new avenue of men-centric cosmetic products that understand the difference between men’s and women’s skin types and cater to the specific needs of men. This specificity is what paved the way for The Man Company’s Success.

4. Personalization and Customization

In a market as diverse as India, consumers are seeking products tailored to their specific needs and preferences. Customized skincare and makeup solutions are gaining traction, allowing brands to offer unique, personalized experiences that cater to specific skin types, tones, and concerns, creating a unique experience for each consumer.

Challenges Faced by the Cosmetics Industry

1. Seasonal Demand Fluctuations

Seasons change drastically in India, ushering in a massive shopping spree with the holiday season arriving simultaneously. The cosmetics industry witnesses a substantial surge in product orders and delivers them to customers in the shortest possible time, and the challenge arises to keep the inventory streamlined. Lack of knowing your customer preferences may lead to overstocking and stockouts, which most brands experience during these times. This not only leads to unwanted inventory in the warehouse but also cuts down revenue and results in a bad customer shopping experience.

2. Inventory Expiry Management

Cosmetics are subject to strict regulatory standards. Mishandling products with an expiry date can lead to dire consequences for your brand, from losing products before they even leave the warehouse to compromising revenue and valuable storage space. Moreover, shipping expired products not only erodes customer trust but also complicates return issues. 

3. Returns Management

Managing returns in the cosmetics industry is crucial for customer satisfaction and brand reputation. Despite best efforts, returns are inevitable. However, if not managed efficiently, it can lead to significant product waste. Inadequate processing and quality check of returned products not only result in wastage but leaves a hole in your brand’s finances and leave customers dissatisfied.

4. Order Fulfillment across channels

 Cosmetic brands like Mamaearth and Suger Cosmetics operate through various channels, including e-commerce platforms, physical retail stores, and their own direct-to-consumer (D2C) websites. However, synchronizing inventory across these diverse platforms can pose a significant logistical challenge. This lack of inventory integration between offline stores and online marketplaces may lead to sudden stock outs or overstocking, leaving the customer hanging and losing potential sales.

5. SKU Proliferation

The cosmetics industry grapples with a diverse range of SKUs due to variations in shades, packaging, and formulations. Striking the right balance between offering a wide range of such products and maintaining a lean inventory can be quite a juggling act. This is especially challenging, considering the ever-changing trends and evolving customer preferences over time. Brands, unable to keep up with these changing trends in the industry, tend to get dissolved with the competition.

6. Limited Shelf Space

As the cosmetic industry continues to grow, warehouses may face constraints in terms of available space. Inefficiencies in storage space utilization can impede your brand’s ability to maximize its potential storage space. This limitation might be the very factor holding your brand back from reaching its full sales potential and accelerating business growth due to limited inventory in the warehouse.

Industry-based Solutions for Challenges

1. Detailed Report Snapshots to Track Demands

To achieve high efficiency during seasonal fluctuations, employing a warehouse inventory management system is crucial to map fluctuations and adjust inventory levels accordingly to maintain slim inventory. Utilize flexible storage solutions for your brand like consumer buying patterns and filter it from SKUs to geographical locations to track product success throughout the country and accommodate changes in product demand.

2. Implementing Batching

The strategic practice of ‘batching’ the inventory enables utilizing the first-expiry, first-out (FEFO) and first-in, first-out (FIFO) options to ensure that older products are used or sold before newer ones, minimizing waste and maximizing profits. 

The Man Company faced a similar challenge, batching 1,000+ SKUs across 11 warehouses. But with batch-level traceability, The Man Company is able to track inventory using important attributes, such as cost, expiry, manufacturing, vendor, etc. Additionally, the batching feature also allowed the brand to identify soon-to-expire inventory and liquidate them accordingly while achieving minimal expiry and spoilage.

3. Efficient Return Management

Returns management, being one of the most cumbersome tasks, requires rigorous visibility of stock and returns processes that include a thorough product inspection. Additionally, quality-checking the product after returns in order to appropriate disposal of damaged or expired items and restocking of acceptable returns. See how Mamaearth rose above this challenge and achieved a faster inventory turnaround while attaining a drop in returns by 300%.

4. Managing Inventory Across Multiple Channels

Implementing an omnichannel strategy would empower your brand by creating a unified inventory pool for all your sales channels, not only minimizing logistics costs but also saving precious time. Additionally, you gain access to detailed real-time reports, all from a single dashboard. So, the need to manually update inventory to online channels and physical stores would become obsolete, subsequently giving your clients a unified shopping experience.

5. SKU Management and Barcode Scanning

Implementing robust SKU categorization and management techniques can significantly enhance inventory control which includes barcode scanning and labeling technology, ensuring accurate and efficient tracking of products, making the process smoother and more streamlined. Many leading cosmetic brands, among Wow Skin Science, Sugar Cosmetics, etc., use SKU categorization and barcode scanning to manage their complex warehouse operations in an effortless manner.

6. Implementing WMS

To overcome limited shelf space challenges, implementing a comprehensive warehouse management system (WMS) would enable your warehouse’s optimal shelf capacity for specific inventory and let you efficiently store products in the warehouse. Additionally, make use of high shelves to maximize vertical space. Investing in efficient storage solutions like pallet racks and mezzanines can significantly increase your storage capacity. 

By strategically organizing your warehouse, you can unlock untapped potential for storing cosmetics and ensure seamless operations. Many leading brands among Plum Goodness have implemented a strategic warehouse management system that enables them to seamlessly track inventory and fulfill customer orders. With full visibility on the inventory, Plum Goodness was able to get detailed reports of their overall business operations and experience a 69% growth in sales.

By addressing these challenges, the cosmetics industry in India can ensure efficient warehouse and inventory management, ultimately contributing to business growth and customer satisfaction.

Related read –

• Nutraceutical Industry in India – Trends, Challenges & Solutions
• Retail & Fashion Industry in UAE – Growth, Challenges & Solutions
• Healthcare Industry in India – Trends, Challenges, Opportunities & Solutions
• FMCG Industry in India – Trends, Challenges, Solutions
• Footwear Industry in India – Trends, Challenges & Solutions
• Apparel Industry in India – Trends, Challenges, Opportunities & Solutions

The post Cosmetics Industry in India – Trends, Opportunities, Challenges & Solutions appeared first on unicommerce.com.

The post Smart Inventory Control: How FIFO & FEFO Methods Minimize Stock Losses for Business appeared first on unicommerce.com.