Managing store inventory is an everyday reality for omnichannel retailers. Stores receive new stock from purchase orders (POs), move inventory between locations using transfer orders (TOs), and perform routine cycle counts as inventory levels fluctuate.
The challenge isn’t just executing these retail inventory management tasks, it’s also keeping inventory data synchronized across systems. If inventory updates from POs, inventory transfers and cycle counts aren’t accurately reflected in eCommerce, POS, and ERP systems, retailers risk overselling, stockouts, and discrepancies that disrupt fulfillment.
Retailers need lightweight, intuitive tools for effective retail inventory management. This guide breaks down how Shopify retailers using NetSuite ERP can perform retail inventory management effectively with HotWax Commerce. From receiving new stock in stores to transferring inventory and performing cycle counts, we’ll walk through each workflow in detail.
What is Retail Inventory Management?
Retail inventory management refers to the processes retailers use to track and manage stock at the store level. This includes receiving inventory from purchase orders, transferring stock between locations, and performing cycle counts to ensure that physical inventory matches recorded inventory. These retail inventory management activities are important for maintaining accurate stock levels and preventing discrepancies that could lead to fulfillment issues.
Why is Retail Inventory Management Important?
Why is Retail Inventory Management Important?
Retail inventory isn’t just about keeping stock on shelves, it’s about making sure the right products are available when needed, without the hassle of manual tracking or unexpected shortages.
Effective retail inventory management ensures that stock movements, from receiving purchase orders to inventory transfers and cycle counts, are accurately recorded without relying on spreadsheets or guesswork.
How to Guide: Retail Inventory Management
Many Shopify retailers rely on NetSuite as their ERP, but managing store-level inventory within NetSuite can be complex. ERPs are designed for enterprise-wide inventory management, which also means that their workflows are not intuitive for store associates who need a simple, streamlined interface for retail inventory management.
HotWax Commerce simplifies this process with its Store Inventory Management Suite. The Receiving App allows store associates to easily scan and record incoming inventory from Purchase Orders (POs) and Transfer Orders (TOs), preventing stock mismatches. The Cycle Count App enables directed cycle counting, helping stores systematically verify and maintain accurate stock levels.
Now, let’s break down how retail inventory management workflows function across Shopify, HotWax Commerce, and NetSuite.
Purchase Orders
Retailers create POs in NetSuite to bring in new inventory, which is usually received at the warehouse and then transferred to stores. Occasionally, POs are generated to receive inventory directly in stores. This retail inventory management workflow involves syncing the latest POs from NetSuite to HotWax Commerce to manage inventory receiving at stores.
Systems Involved: Shopify, Shopify POS, HotWax Commerce OMS, HotWax’s Receiving App, and NetSuite.
PO Workflow
1. Download POs from NetSuite: HotWax automatically downloads new POs from NetSuite.
2. Reflect POs in the Receiving App: Once new POs are synced to HotWax Commerce, they are automatically reflected in HotWax’s Receiving App. Store associates use the app to scan and receive new inventory in their stores.
3. Inventory Receipt: Once stock arrives at the store, store associates use HotWax’s Receiving App to scan and log items, updating inventory records in HotWax.
4. Inventory Update: HotWax syncs inventory updates to Shopify, this helps make sure that the latest stock count is accurately reflected in Shopify. Result? No risk of underselling. HotWax also syncs updated inventory levels from new item receipts to NetSuite.
This concludes the PO workflow in both HotWax Commerce and NetSuite.
Transfer Orders
Retailers create TOs to manage inventory movement between warehouses and stores or between stores. This retail inventory management workflow involves syncing the latest TOs from NetSuite to receive inventory at stores and fulfill store-to-warehouse or store-to-store TOs.
Systems Involved: Shopify, Shopify POS, HotWax Commerce OMS, HotWax’s Receiving App, and NetSuite.
• Warehouse to Store TOs
When there is a need to replenish inventory at retail stores from the central warehouse or DC, TOs are initiated to move the required stock from the warehouse to the stores.
• Store to Store TOs
Stores with surplus inventory transfer it to another store in need using store-to-store TOs.
• Store to Warehouse TOs
Store managers can return excess or unsold inventory from stores to the warehouse by creating store-to-warehouse TOs.
TO Workflow
Let's take a look at Warehouse to Store TOs workflow:
1. Sync Item Fulfillment Records from NetSuite to HotWax: Warehouse managers create a warehouse-to-store TO in NetSuite. Once TO items are picked, packed, and dispatched from the warehouse, Item Fulfillment records are created in NetSuite and marked as Shipped, with inventory counts reduced in NetSuite at the origin location.
NetSuite’s SuiteScript exports these Item Fulfillment records, HotWax Commerce reads these records and creates inbound shipments for receiving at the destination store.
2. Reflect Inbound Shipments in the Receiving App: Inbound shipments are automatically reflected in HotWax’s Receiving App at the destination store. Store associates use the app to scan and receive new inventory in their stores.
3. Update Inventory in HotWax Commerce: Once store associates receive the TO inventory in their store, inventory counts for the received products are automatically increased in HotWax Commerce.
HotWax Commerce also increases the inventory count of the product in Shopify.
4. Synchronize Item Receipts to NetSuite: HotWax Commerce creates and syncs Item Receipt records to NetSuite. NetSuite’s SuiteScript reads these records, marks the TO as Received, and increases inventory counts for stores.
This concludes the Warehouse to Store TO workflow in both HotWax Commerce and NetSuite.
In the case of Store to Store TOs, store associates use HotWax’s Fulfillment App at the origin store to fulfill the transfer order items and the Receiving App at the destination store to receive the transferred inventory, updating inventory levels accordingly.
For Store to Warehouse TOs, store associates use HotWax’s Fulfillment App to fulfill transfer order items from the origin store, reducing inventory levels at the store.
Learn about additional TO workflows.
Cycle Counts
Retailers aiming for 98% to 99% inventory accuracy regularly perform cycle counts at their locations to maintain up-to-date inventory records.
Periodic cycle counting at stores involves regularly counting product inventory to identify and correct discrepancies, thereby maintaining accurate stock records. This retail inventory management workflow includes creating cycle counts, assigning them to stores, performing the counts, and updating inventory records.
Systems involved: Shopify, Shopify POS, HotWax Commerce OMS, HotWax’s Cycle Count App, and NetSuite.
Cycle Count Workflow
1. Create and Assign Cycle Counts: Retailer’s operations team leverages HotWax’s Cycle Count App to create and assign cycle counts across stores.
2. Perform and Submit Cycle Counts: Once the operations team assigns cycle counts, store associates can view all the cycle counts assigned to their store, including the number of items, creation date, and due date for each cycle count.
Store associates scan the items requested in a cycle count and submit the results for review.
3. Record Inventory Variance: After reviewing the submitted counts, the operations team can accept, reject, or request a recount. If the cycle counts are accepted, the inventory variance is recorded in HotWax Commerce, and inventory counts are automatically updated.
For example, if the variance submitted is a negative value (-5), the current inventory will be reduced by 5. Conversely, if the variance is positive (+5), the inventory count will be incremented by 5.
4. Inventory Update to Shopify: As previously mentioned, any changes in the inventory of products in HotWax Commerce are also automatically synced to Shopify.
5. Inventory Adjustments to NetSuite: HotWax Commerce syncs the inventory adjustments to NetSuite, and NetSuite’s SuiteScript reads these records to update the inventory levels.
How Efficient Retail Inventory Management Helps?
A well-managed retail inventory management process removes the complexity of stock handling and allows retailers to operate smoothly without worrying about errors or inconsistencies.
• Accurate PO receiving without spreadsheets
Store associates can scan and log inventory directly when receiving shipments, eliminating manual entry and reducing stock mismatches.
• Seamless inventory transfers
Whether redistributing products between stores or sending stock back to warehouses, retailers can transfer inventory efficiently without delays or confusion.
• Cycle counts that prevent overselling and lost sales
Instead of waiting for major audits, regular cycle counts help stores detect discrepancies early, keeping stock levels accurate at all times.
• Less time spent fixing inventory issues
With inventory updates automatically reflected across systems, store associates don’t have to spend hours resolving stock inconsistencies or searching for missing items.
• Better stock control for improved sales and fulfillment
When inventory is properly managed, stores always have the right products available for customers, increasing sales potential and ensuring smooth order fulfillment.
Achieving a Unified Retail Inventory Management Strategy
Retail inventory management isn’t just about keeping track of stock, it’s about making every inventory action more efficient, preventing errors, and giving retailers confidence in their store operations.
With Shopify, NetSuite, and HotWax Commerce working together, retailers gain a centralized, streamlined approach to retail inventory management, reducing manual effort, preventing errors, and keeping accurate stock availability across all locations.
From receiving POs in stores without spreadsheets to executing inventory transfers and maintaining accurate cycle counts, HotWax Commerce simplifies retail inventory management, giving store associates the tools they need to work efficiently.
For retailers looking to scale their omnichannel retail operations, store inventory management is just one piece of the puzzle.
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Omnichannel fulfillment workflows, including Ship From Store, BOPIS, and warehouse fulfillment.
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Returns management workflows, covering online returns using Loop Returns and in-store returns through Shopify POS.
The complete blueprint for integrating multiple systems to create a future-ready omnichannel retailing strategy. Get the full picture of omnichannel order and retail inventory management, download the whitepaper now.
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