The rise of massive online retailers who are equipped to offer low-cost (or even free) one- and two-day shipping has steadily pushed smaller businesses to compete. Brick-and-mortar stores now commonly offer same-day Buy Online Pick-Up In Store (BOPIS) to remain competitive in the customer’s eye. And while fulfilling online orders from stores located near the customer also helps the retailer save on shipping costs and shorten delivery times, it is a process that requires streamlined inventory management.
Shopify is a popular all-in-one commerce platform, but on its own, this platform often falls short when it comes to inventory management, often leading to issues like reduced inventory accuracy. Let’s take a closer look at how business owners can get the most out of Shopify and utilize an effective Store Inventory Management Software to speed up shipping.
Here are 5 processes and capabilities of Shopify Store Inventory Management Software designed to help Shopify retailers improve inventory accuracy.
1. Inventory Receiving
Inventory receiving is the process of reconciling the inventory received in the shipment against the purchase order. When a shipment arrives, the number of items received is verified and compared with the purchase order to identify any discrepancies. This will ensure that an accurate inventory count is recorded. Stock associates should be able to quickly reconcile and receive incoming purchase orders, shipments, and returns at the store.
Shopify Store Inventory Management software enables stock associates to scan the barcode, reconcile received inventory with an easy-to-use interface, and successfully receive it. Once the items are received, the inventory count is automatically updated within Shopify Store Inventory Management software and Shopify POS.
2. Store-to-Store Stock Transfers
Some stores may experience lower sell-through rates compared to others, which inevitably leads to idle stock. This excess inventory may be better served at other store locations, either supporting geographical buying trends or fulfilling online orders. To properly optimize inventory, Shopify retailers need to be able to transfer the inventory from one location to another without disrupting the flow of business.
One solution to this challenge is Shopify Store Inventory Management Software. This software allows stock associates to record the transfer of inventory from one store to another and update the inventory count at each store in real-time. By doing so, retailers can effectively manage their inventory levels.
3. Inventory Cycle Counting
Sometimes, Shopify retailers must cancel customer orders because they do not have the inventory to fulfill them. Often, this is the result of inventory discrepancies between the system’s displayed inventory and the physical inventory. Even if the received inventory is verified accurately, these items, through various means, may become unsellable at a later date. If the sellable inventory is not properly tracked against what is truly available, this can end up costing the company not only in monetary value but in customer satisfaction and brand loyalty. In order to prevent these costly discrepancies, stock associates must perform an inventory counting process that routinely counts physical inventory and records variances in the Shopify Store Inventory Management software.
Shopify Store Inventory Management software aids in avoiding these discrepancies by supporting inventory management best practices. When stock associates perform their routine inventory counting processes, they are able to then record variances in physical and recorded inventory through Shopify Store Inventory Management software. Within the software, stock associates can scan products, their locations, and record counts in one convenient location. This data is then readily available to store managers for review and approval across the system.
4. Order Fulfillment
Similar to warehouses, order fulfillment from stores involves picking order items and preparing them for pick up or delivery. Shopify retailers should make it easy for stock associates to locate order items and pack them to build the store's competence in managing inventory. To ensure that orders are fulfilled smoothly, it's recommended that store associates use a Store Fulfillment software. This software supports various store fulfillment processes, such as picking, packing, and generating shipping labels. By using Store Fulfillment software, retailers can ensure that orders are processed quickly and accurately, which can improve customer satisfaction and retention.
However, it's important to note that not all Store Inventory Management Software or Omnichannel Order Management Software includes Store Fulfillment software as part of their solutions. Therefore, retailers should do their research and select a platform that provides comprehensive inventory, order and fulfillment management capabilities to meet their specific needs.
5. Inventory Reports
Store managers need to be able to quickly track and locate the inventory of a product in the store. Similarly, retailers want access to a global view of inventory across locations so they can appropriately plan future sales, inventory transfers, and markdowns with the objective of clearing the inventory before the season ends.
The tracking and locating of inventory of any product at any given time is critical for merchandisers. Inventory reports are meant to provide storewide information in a clear and easy-to-understand format so that the business can streamline its workflow. Tracking inventory is a crucial part of inventory management; this offers visibility into inventory across all locations and allows for the planning of future sales. Inventory reports help track KPIs like inventory turnover rate, sell-through rate, inventory shrinkage ratio, fill rate, pick and pack cycle time, and time to receive. This insight, made possible through robust Store Inventory Management Software, is necessary for retail leaders to improve their ROI and make data-informed decisions for future stock.
Revamping Your Store Inventory Management System
An effective store inventory management software is crucial for the success of any omnichannel business. The processes and capabilities outlined in the blog highlight the importance of a comprehensive store inventory management solution for Shopify retailers. With the right tools and strategies in place, Shopify retailers can improve customer satisfaction and stay ahead of the competition.
* * *
HotWax Commerce is an Omnichannel Order Management System that offers Store Inventory Management software pre-integrated with both Shopify and Shopify POS. HotWax Commerce Store Inventory Management software for receiving inventory, counting inventory, store-to-store stock transfers, and store fulfillment that help increase inventory accuracy and reduce overselling or underselling. Talk to our team to learn more about how Store Inventory Management software can improve your inventory processes today.