Cross-border e-commerce inventory management optimization strategies and practices
The rapid development of the cross-border e-commerce industry has put forward higher requirements for inventory management. This article will combine the content of multiple articles to discuss the importance, classification methods, purchase, sales and inventory formulas and optimization strategies of cross-border e-commerce inventory management.
1. Inventory classification method and purchase, sale and inventory formula
According to the industry characteristics of cross-border e-commerce, inventory can be divided into the following categories:
- Domestic warehouse inventory: refers to the goods purchased by domestic enterprises from upstream suppliers for sale and stored in domestic warehouses;
- Third-party overseas warehouse (FBA warehouse) inventory: refers to FBA overseas warehouses and third-party overseas warehouses that receive goods sent from domestic warehouses and inspect finished goods for sale in the warehouse;
- Inventory in transit: refers to finished goods shipped from domestic warehouses to FBA warehouses and third-party overseas warehouses that have not been received in transit;
- Safety inventory: It is finished goods for sale that are prepared in advance in FBA warehouses or third-party overseas warehouses in order to prevent store shortages from affecting sales.
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The warehouse purchase, sales and inventory formula is as follows:
[ text{Ending inventory} = text{Beginning inventory} + text{Incoming inventory in this period} – text{Outgoing inventory in this period} ]
Beginning inventory: refers to how many types of goods were in the warehouse at the end of last month and the beginning of this month, the quantity and value of each type of goods;
This period’s warehousing: refers to the total number and value of goods warehousing into the warehouse this month;
Outbound shipments in this period: refers to the total number and value of goods shipped out of the warehouse this month;
Ending inventory: refers to the total number and value of goods remaining in the warehouse at the end of the month.
2. The importance of inventory coding management
Enterprises with chaotic inventory coding management cannot calculate their inventory clearly. Goods coding mainly refers to the smallest stock keeping unit (SKU) of goods. Each product has a unique SKU code. When domestic warehouses purchase finished products and put them into storage, there will be a product code. This code is generally a unique code that combines purchasing information and product information. However, when we sell goods on different e-commerce platforms, the platform system will form another code of its own, such as the ASIN code of the Amazon platform. The SKU code of the domestic warehouse must correspond to the ASIN code of the Amazon platform.
3. Inventory management strategy
1. Proper inventory planning
Develop reasonable inventory plans based on sales data and market demand forecasts to avoid problems of insufficient or excessive inventory. Through data analysis, inventory levels can be adjusted in a timely manner to ensure timely supply and avoid slow sales.
2. Real-time inventory tracking
Use inventory management software to track inventory levels in real time so you can stay informed about your inventory. This helps avoid issues with under- or over-stocking and allows for timely adjustments to sales strategies.
3. Regular inventory count
Regularly conduct inventory in overseas warehouses to ensure that the inventory quantity is consistent with the system records. For abnormal situations, the cause should be identified promptly and corresponding measures should be taken.
4. Optimize logistics distribution
Choose reliable logistics partners, optimize logistics distribution channels, improve distribution efficiency, and reduce logistics costs. This helps ensure inventory accuracy and timeliness.
5. Adjust sales strategy
Adjust sales strategies based on inventory conditions, such as through promotional activities, discount sales, etc., to promote the digestion of inventory and the return of funds.
6. Establish good communication channels
Establish good communication channels with suppliers and logistics partners, keep abreast of inventory status, and solve existing problems. This helps improve the efficiency and accuracy of inventory management.
7. Develop an emergency plan
Develop emergency plans for possible unexpected situations. For example, inventory abnormalities, delivery delays, etc. can be responded to in a timely manner and losses reduced.
4. Current status and development trends of inventory management
Currently, the logistics inventory of cross-border e-commerce generally adopts third-party outsourced warehousing, which is the overseas supplier inventory management model. This model can carry out standardized inventory management and form a scientific inventory management method.
5. Inventory data analysis and forecast
1. Inventory turnover days
Inventory turnover days reflect how long it will take for the company’s inventory to be converted into cash based on current sales conditions.
2. Inventory turnover rate
Inventory turnover rate is an important basis for measuring an enterprise’s management capabilities. It reflects the inventory structure of an enterprise over a period of time and is an important indicator for business decision-making.
3. Error rate
The mis-delivery rate is the probability of errors when warehousing packages are processed, including mis-delivery and missed delivery.
4. Sales rate
The sales rate refers to the ratio of the number of goods sold to the total number of goods in stock within a certain period of time. The higher the store’s sales rate and the higher the weight of the product, it will not only get more display opportunities, but also increase the probability of passing official activities.
6. Optimization methods of inventory management
1. ABC classification
The ABC classification method, also known as Pareto analysis, primary and secondary factor analysis, etc., is based on the main technical or economic characteristics of things, classifying and queuing them, distinguishing the key from the general, and thus determining management methods differently. an analysis method.
2. VMI mode
Direct mail model inventory management based on vendor managed inventory (VMI) integrates traditional direct mail with overseas warehouse models and adopts the “supplier-platform operator VMI” operating model.
Summary
Inventory management for cross-border e-commerce is a complex but important task. Through reasonable inventory classification, application of purchase, sales and inventory formulas, inventory coding management, real-time tracking of inventory, regular inventory inventory, optimization of logistics and distribution, adjustment of sales strategies, establishment of good communication channels, formulation of emergency plans, inventory data analysis and forecasting and inventory Management optimization methods can effectively improve the efficiency and effectiveness of inventory management.