These days, whenever we think of buying something, we mostly order it online. The reason being, most whatever we need, is all available online. Hence, we feel that there is no need to step out for buying something if it can be delivered to your doorstep.
This is how much influence eCommerce and by proxy, inventory management has on us. It shows the unstoppable growth of the industry. However, with growth comes responsibility.
COVID-19 has changed many things across the globe. It has also changed the dynamics and working of several industries— and one such industry is—eCommerce. The pandemic led to the dependency on eCommerce platforms—driving eCommerce growth.
Although eCommerce has been a common practice since the Internet becomes open to the public in the 90s, it has now become more of a need than just an option for many retailers.
If we talk numbers, by the end of May 2020, eCommerce transactions reached $82.5 billion or an equivalent of 600 hundred crores INR — a 77% increase from 2019. Not to forget, the numbers are only going up as we speak.
These days, with so many people starting their eCommerce business to become their boss, the competition in the market is at its peak. In such times, eCommerce businesses must outsource inventory management to increase their sales, improve delivery performance, and lower costs.
When you outsource inventory management, they systematically manage functions such as sourcing, storing, and selling raw materials, goods, or products.
Inventory management providers primarily focus on getting the right products at the right place at the right time at the right price.
In eCommerce, big business owners already have a lot on their plate that they have to manage. From manufacturing to quality control, they have to deal with a lot of tasks. In this case, a big eCommerce business should outsource inventory management. This allows eCommerce business owners to leave the responsibilities of storage space, software, and order fulfillment and they can concentrate on the other aspects of their business growth.
Benefits of outsourcing inventory management for eCommerce:
These days, any big manufacturing or retail business needs effective and efficient inventory management. However, you don’t need to do it in-house.
Outsourcing Inventory Management Benefits –
Increased sales: As per the latest statistics, eCommerce businesses that outsource inventory management have seen a 2-10% increase in their sales due to on-time delivery, high-end quality maintenance, and proper stocking of raw materials or goods.
More transparency: When you outsource inventory management, there is increased information transparency as you get details of when goods are received, picked, packed, shipped, etc. You also get informed when you are over-stocked and under-stocked.
Shorter lead times: Outsourcing inventory management can read to 5-10% reduction in lead times as it allows you to concentrate on your core business as the logistics provider takes responsibility for other tasks.
Boosts efficiency: One of the key benefits of outsourcing inventory are that it improves the efficiency of your business drastically as it enables you to concentrate on your core business.
Cost-saving: Outsourcing inventory management leads to cost savings as it automatically reduces logistics and carrying costs. You can also use the expertise of your inventory management expert to reduce your overall expense.
AAJ Supply Chain Management
