Best Practices For Ecommerce Inventory Storage Solutions

Because inventory causes exponential pain with multiple warehouses... This infographics shows how to manage inventory in this context: ➡️ Centralize Inventory Visibility ↳ Issue: not knowing inventory levels across locations can lead to overstock in one warehouse and stockouts in another ↳ Action: Implement an inventory management system/ ERP that shows real-time inventory positions for all warehouses in one snapshot ➡️ Classify Products and Prioritize ↳ Why: Not all SKUs deserve the same treatment; some are high-value, others are seasonal ↳ Action: Use ABC analysis to rank products by focusing on A-items for tighter control ➡️ Define Replenishment Rules by Warehouse ↳ Why: Different warehouses cater to different regions or demand patterns. One-size-fits-all reorder points (ROP) won’t cut it ↳ Action: Tailor ROP, safety stock, and min-max levels by location. Consider lead times from central distribution centers or suppliers for each site ➡️ Breakdown Forecast by Warehouse ↳ Why: Each warehouse faces unique market dynamics ↳ Action: Generate warehouse-level forecasts, combining local sales trends with broader S&OP inputs ➡️ Plan Transfers Strategically ↳ Why: Sometimes it’s of lower cost or faster to transfer stock than reordering from suppliers ↳ Action: Set up a transfer framework; regularly review surplus vs. deficit at each location. Automate triggers for transfer orders when it’s cost-effective. ➡️ Monitor KPIs Proactively ↳ Why: Multi-warehouse complexity can hide inefficiencies when not tracking the right metrics ↳ Action: Track fill rate, inventory turnover, stock aging, and transfer costs at each site. ➡️ Plan Direct Dispatches & Save Costs ↳ Why: Dispatch directly from the plant to save logistics costs ↳ Action: Prepare daily dispatch plans targeting direct replenishment from the plant and use these warehouses for milk runs for distributors Any others to add?

You think your inventory is fine. Until peak season hits and suddenly...... One warehouse is drowning in orders while another collects dust. You're overnighting products just to keep up, burning margins faster than a bad Facebook (Meta?) ad. Your 3PL is telling you, "We need more inventory here," while your finance team is screaming, "We need less inventory there!" And you? You're left wondering why no one saw this coming. Here's my idea of an inventory allocation playbook that you should peek at. Step 1: Stop Guessing, Start Looking at SKU Velocity Not all SKUs should be stocked equally across warehouses. Your top-selling items? Get them as close to customers as possible. Slow movers? Centralize them where they won’t clog up expensive space. If you’re distributing inventory based on cooool vibes and not hard data, you’re setting yourself up for a crap time. Step 2: Regional Demand Matters More Than You Think You might think you’re saving money by keeping everything in one warehouse. Until your East Coast customers are paying California shipping rates and filing chargebacks like it’s their job. Who loves having an average zone 6/7 shipping?!? Look at heatmaps. Where are your customers actually buying? Step 3: Don’t Let Amazon’s Rules Run Your Whole Business Yes, FBA is great. Until you run out of inventory. Or they suddenly limit your inbound shipments. Last Q4 was fun trying to get an appointment with their new protocols, amiright?!? Or they hit you with long-term storage fees that make you question why you got into supply chain & logistics in the first place! Smart brands balance FBA with a reliable fulfillment network that keeps Prime-level shipping speeds without relying 100% on Amazon’s mood swings. Step 4: Your 3PL Should Be Helping You With This, Not Just Storing Boxes If your fulfillment provider isn’t actively helping you optimize inventory placement, SKU velocity, and warehouse allocation… You don’t have a partner. Sorry, it's true. You have a storage unit. Step 5: Data is King, But Execution is Queen What good is all this data if you aren’t making moves? Build a quarterly inventory allocation plan based on hard numbers. Pressure test your 3PL on how they handle stockouts and overflow. I wouldn't advise doing a new marketing initiative w/o telling your fulfillment provider. But that is typically a great gauge. Your competitors are making these decisions right now while you’re still debating if your one warehouse in Reno Nevada is good enough. Bottom line is simple. Inventory allocation is either your biggest growth lever or your biggest bottleneck. Get it right, and you lower costs, speed up shipping, and make customers happy. Get it wrong, and you’re playing inventory whack-a-mole all year. Which one do you want? If your current fulfillment setup isn’t optimizing inventory before you even notice a problem, let's chat. #ecommerce #3PL #fulfillment

Paying too much in Amazon storage fees? You’re not alone — and yes, there’s a smarter way to handle it. As Amazon tightens its inventory limits and increases monthly & aged storage fees, optimizing your supply chain logistics isn't optional anymore — it's essential. Reduce fees without hurting your stock availability: Implement Just-in-Time FBA Replenishment Avoid overstocking at Amazon. Store bulk inventory with a 3PL or in your own warehouse and send smaller, faster-moving batches to FBA based on sales velocity. Track your Sell-through Rate Religiously Amazon uses this metric to judge your inventory health. Poor sell-through = higher fees and stricter restock limits. Use restock reports and improve your demand forecasting. Clear Out Slow Movers Aged inventory = expensive inventory. Create removal orders, run liquidation promos, or bundle slow SKUs with fast ones to move stock before long-term fees hit. Use Amazon’s Warehousing & Distribution AWD allows you to store inventory in Amazon’s low-cost off-site network and replenish to FBA automatically. Great for large volume sellers looking to save on peak storage rates. Forecast Based on Seasonality & Trends Don’t send summer products in January. Use historical data, trends, and even external sources like Google Trends to predict true demand windows. Optimize Packaging & Carton Size Inefficient packaging eats into both storage space and inbound shipping costs. Amazon now penalizes large, lightweight, or oddly-shaped products with higher storage fees. Smart logistics = higher margins. The brands that win on Amazon aren’t just great at marketing — they’re laser-focused on operational efficiency. Do you want to optimize storage fees? Let’s have a call with one of our Supply Chain Experts. #amazon #amazonfba #Amazonseller #Storage #Optimization https://lnkd.in/gXiy4u3Q