On the shein platform, inventory management is crucial for merchants. Only by effectively managing inventory can we ensure the timely supply of goods, avoid excessive backlogs or out-of-stock situations, and thus improve operational efficiency. Excellent inventory management can reduce inventory costs, improve capital turnover, and enhance corporate competitiveness. Let’s take a look at the importance of shein inventory management.
The gross profit margin of clothing companies is generally maintained at 70%, but most companies still face losses. Because inventory management is difficult to achieve ideal results – too much production, but encountering unsalable, have to sell at a large discount or directly destroy; too little production will face out-of-stock, and when you want to put into production, the quarterly trend may have quietly passed – this is why fashion companies that can fully master inventory management methods can eventually reap the fruits of long-term victory.
Good inventory management focuses on the following four components:
1. Style classification. If a variety of goods need to be manufactured, merchants need to use data to analyze popular styles, conduct comprehensive market research, understand consumer needs, and invite designers to customize styles.
2. Production quantity. Merchants need to pay attention to past sales data and their forward-looking market data to investigate market demand. Then find a suitable factory and determine the raw materials that need to be purchased.
3. Production speed. This dimension depends on the time cost consumed in many stages such as design, procurement of raw materials, completion of production, and preparation for shipment.
4. Replenishment speed. This dimension depends on whether the merchant can quickly obtain more materials, whether the factory can quickly determine the order of the production plan, and the final speed to market. Generally speaking, most fashion brands can complete the entire process in as little as three months.
Inventory management is crucial for fashion companies to achieve long-term success. Style classification, market research, production quantity forecasting, and replenishment speed are the core elements of inventory management, which need to be combined with data analysis and consumer demand to ensure that products can be launched on the market in a timely manner. Only by mastering these methods can fashion brands avoid the problems of overproduction or out-of-stock and achieve success.