How To Conduct An Ecommerce Inventory Review

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?

Inventory will make, or break, your Amazon FBA business.   You can take all the right actions with your marketing to scale your sales on Amazon.   And your sales grow, let's say, 37%. 🤑   And your listing rank went from 4,372 to 2,371 organically. 🎉   But if you forget to ship your product in on time…   In just one week your organic rank will revert from 2,371 to 4,372+. 🙁   Organic rank comes slowly.   It goes quickly.   Staying in-stock is critical if you want to succeed on Amazon.   Start with ABC classification.   Break your products into three tiers:   A Tier: Greater than 5%   B Tier: 1-4.99%   C Tier: Less than .99%   Next, identify your lead time - how many days does it take to get product in?   Finally, identify your unit sales velocity.   Combine these three together, ABC classification, lead time, sales velocity.   Build an excel & run the report weekly to identify what is running low based on your recent sales velocity, & how soon you need to ship accounting for lead time.   Analyze your excel every Monday.   Never let you’re A tier go OOS.   Always keep up with B tier products, trying to get the lead time just right.   For C tier, do your best, but if cash is tight, or time is thin, it's okay to go OOS on C tier's occasionally as it will be low impact on your sales.   #Amazon #Inventory #ecommerce #digitalmarketing #sales

Most brands wait until EOY to evaluate their fulfillment strategy. Boo! Don't be like them. By then, you’re reacting instead of planning. At minimum, do it every quarter. Here’s what to look for. 1 - SKU Placement Are your top-performing SKUs in the right locations to reduce last-mile delivery costs? SKU placement isn’t just geography; it’s about demand intelligence. Analyze your sales data to uncover where most of your orders originate. For example, are customers in the Midwest consistently ordering your top-selling SKU? If so, ensure it’s stocked in a fulfillment center nearby to avoid costly zone shipping. Match SKU velocity to proximity!! Fast movers need to be close to your biggest customer bases. However, low-demand SKUs should be centralized in one or two hubs to reduce overstock across multiple locations. Find ways to optimize replen cycles. Automating replenishment ensures SKUs are always where they’re needed. 2 - Inventory Balance WAY more than a numbers game. It's more about efficiency and cash flow. Set dynamic safety stock levels by creating flexible thresholds for each SKU but also accounting for peaks in your biz. Move slow movers strategically. Relocate underperforming products to centralized hubs or offer promotions to clear out excess stock, freeing space for high-demand items. 3 - Carrier Performance This will be THE year to get it right. There were a lot of changes in 2024 that will impact you in 2025. I worked for a company competing against the big four. Please please please, do the following. Measure actual vs. promised delivery times. Evaluate hidden fees. Conduct post-delivery surveys. In the end, quarterly reviews mean fewer surprises, lower costs, and happier customers. Make quarterly fulfillment audits a priority this year. #ecommerce #fulfillment #3PL