4. Take a load off with better inventory management

(Predict your stock with AI and machine learning | Source: Delivrd)

If you’ve got an overstock, you’re losing cash. If you’ve got an understock, you’re missing out on sales. It’s the kind of seesaw that all eCommerce merchants have had to wrestle with at some point.

Ah, if only the robots could help us.

Inventory management is a real pain in the butt and it can even be the downfall of eCommerce stores. 46%of US companies have admitted that they don’t track their inventory, while more than $1 trillion of capital is tied up in inventory.

Whether you’ve got an overstock or an understock, inventory management can pull the rug from under your feet. When done manually, it’s hard-to-impossible to make accurate predictions about sales. As a result, we end up with a cash flow problem.

Once AI is in motion, forecasts on future demands become a lot more precise. This allows you to control your supply chain with ease, and it also ensures that you know more about your customers and their behaviors. As a result, shrinkage is reduced, and you get to save time and cash.

Actionable takeaway

To improve your inventory management, it’s a good idea to switch from qualitative forecasting methods to quantitative. This is when you use an inventory management tool to make better decisions that are based on the past performance of your products.

Assess your carrying costs when the time comes to ordering inventory, too. When you know what your carrying costs are, it’s easier to maintain a healthier level of inventory.

Use your tool to help you avoid overstock or understock, too. Both are these can be super costly, but they’re a common occurrence, especially in the eCommerce world.