Core Concepts and Terminology
Inventory Management is crucial in eCommerce, ensuring a balance in product availability and meeting customer demands. This involves a careful blend of stock control, order processing, and demand forecasting, all critical for smooth eCommerce operations.
43% of retailers either don’t monitor their inventories or do so using manual techniques!
Stock Control
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Definition: Managing the items in stock to meet customer demand without holding excess inventory.
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Importance: Prevents stockouts and overstocks, maintains customer satisfaction, and keeps storage costs in check.
Order Processing
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Definition: Managing customer orders from receipt to delivery.
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Importance: Boosts customer satisfaction by reducing lead times and ensuring accurate, timely deliveries.
Demand Forecasting
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Definition: Predicting future product demand for proactive inventory planning.
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Importance: Ensures inventory levels meet market demands, avoiding stock issues and supporting customer trust and business sustainability.
