The Importance of Inventory Management in Order Fulfillment

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Inventory management is important for any e-commerce business. It doesn’t matter if your business has been in operation for five years or just getting started. Inventory management is an important part of your order fulfillment. Use this guide to learn more about why inventory management matters, and why properly managing inventory should be at the top of every business owner’s priority list.

The Importance of Inventory Management in Order Fulfillment

What is Inventory Management?

Inventory management means tracking orders, and keeping track of what remains in your stock once these orders have shipped out. Inventory management is a constant process, and it’s an aspect of your business that you always have to keep an eye on.

Businesses like Amazon and Walmart use professional inventory management services: why don’t you?

Why Do You Need Inventory Management?

Inventory management saves you time and money. Professional inventory management allows any business owner to scale their business to become bigger than their current capacity.

Without inventory management, businesses often lose track of the most basic facets of their business. However, if you have proper inventory management on your side, you have more time to focus on the most important parts of your business.

Smaller businesses don’t always know when to switch to inventory management. It’s a good idea to switch once you realize your capacity is bigger than your ability! Once your business has started growing, invest in inventory management platforms.

What is Smart Inventory Management in Order Fulfillment?

In the past, inventory management was done with the pen-on-paper methods. However, these days there are far more modern systems that rely on computerized inventory management. These methods can reduce costs, and provide a far more accurate measurement of what’s going on in your business.

Smart inventory management allows a company to have things done automatically, instead of manually.

These systems can also tell you detailed information like:

  • What item or items sell out first
  • Order volumes: What should be ordered next to meet customer demand
  • Optimized order Inventory
  • Prevent overstock and backorders
  • Simplify the return process to minimize costs

Ditching the Paper Methods

Paper methods are way slower and far behind computer-driven ways of inventory management. A third-party inventory management company can help you finally ditch the old-fashioned methods. Those methods might be holding your business venture back.

Being More Efficient With Inventory Management in Order Fulfillment

Modern inventory management allows companies to be more efficient. Without an efficient order fulfillment system in place, a business can spend up to fifty percent of its time on shipping and tracking needs.

However, with a proper inventory management system you can get your order fulfillment process moving faster. Timely delivery results in a better customer experience.

Business owners can have more time to focus on the more important aspects of their business, such as:

  • Growing their customer base
  • Focusing on the quality of the products they sell

Order Fulfillment Advantages

Large businesses and corporations already know the advantages of inventory management. That’s why Amazon can get products to your door on the same day.

Professional inventory management will:

  • Make your order processing and fulfillment more efficient
  • Provide important statistics about your business
  • Give you more time that you can turn into money
  • Meet customer expectations with faster delivery time
  • Reduce shipping costs

Are you using the best professional inventory management system, or could it be time to switch?

MAI Fulfillment | 3PL Warehouse Chicago, Illinois

Warehouse | Cross Docking | Fulfillment | Kitting | Inbound/Outbound Voice | Freight Broker

Established in 1981, MAI is a privately-held 3PL company in Chicago specializing in warehousing, fulfillment, and omnichannel contact services. As an experienced outsourced provider, we provide value-added solutions designed to help companies build and maintain relationships with their customers.

The MAI business model offers clients the efficiency and convenience of dealing with a single accountable resource for a wide range of services. MAI areas of specialization include:

  • Custom B2B and B2C warehouse/fulfillment solutions
  • Omni-channel contact center services
  • Technology support

A wide range of service offerings, strategic problem-solving skills, and experience make MAI a valued partner to a broad range of Fortune 500 companies. “Quality” is more than just a word here – it’s the foundation of how we conduct business and an integral part of the processes and metrics we use to deliver value to our clients every day.

Contact MAI today to learn more!

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