Every Retailer Needs To Look For This In Their Online Inventory Reports

Warehouse management systems (WMS) often have many different types of online inventory reports that help you track your inventory. Inventory reports are crucial to managing your business because they provide specific information on your key KPI’s and metrics, how your inventory is doing, and where errors might have occurred all in one space. One of the best ways to know that your WMS is right for you is that your inventory reports have all the essential information all in one place. If they are missing key pieces of information, you could find yourself having to sift through your system for hours — or worse, or pull together a new one from scratch. Want to save all that time and energy? Then next time you look at your WMS inventory report, make sure it includes these key components:

 

Dashboard Reports

Dashboard reports are great because they provide key summary indicators of how your online inventory is doing at any given time. Make sure these five key components are included in your WMS dashboard:

Active and Pending Orders

It is essential to know how many of your orders have been downloaded and not shipped yet, or are currently active. This information affects your company’s ability to adequately meet the needs of your customers. For example, if you don’t know which of your orders are pending, you can’t help your customers if they ask about their order!

Active receipts

Active receipts are important to include in online inventory reports because it shows how many active purchase orders are pending to be received and how many will arrive in your warehouse. You can use this information to calculate future inventory forecasts, such as your availability to promise (ATP) levels.

Single-Item orders and Multi-Item Orders

This is useful to know so that you can see how many orders of each type are being processed. This will tell you how long it might take before they’re shipped. Single and multi-item orders have different picking and packing process flows in the warehouse — for example, single-item orders can be picked using batch picking, whereas multi-item orders can be picked using a cluster batch picking or order-based picking.

Space optimization

Make sure you have this included in your online inventory report to be aware of how many locations are empty in your warehouse that is ready to receive incoming items or products. If you don’t know how much space you have left, you could end up with an inventory surplus or shortage.

How Many Tasks Are Pending

Knowing how many warehouse tasks are pending is important because it shows where your shipment progress is at any given time at in the warehouse.

 

Online Inventory Reports - Inventory

Main Online Inventory Reports

As you can see above, this inventory report screen in Logiwa shows the available inventory in your warehouse that is available for sales. When you look at our report, it includes some more key components, such as:

Images

This is great to have for clarity on what the sku involved are, and also to help you differentiate between two similar items.

Available Quantity

It is always important to know how much inventory you have left available to sell. That way, you don’t oversell your stock or reorder too much!

Attributes

Attributes such as the lot number, expiration date, or serial number show the traceability of the inventory. For example, if you are operating in the food industry, knowing the lot number and expiration date is essential for potential recalls. Additionally, the serial number ensures that if a product is returned, it is the same product you sold in the first place.

 

Online Inventory Reports - Shipment Progress

Shipment Progress Reports

Last but not least, another essential type of online inventory reports is the shipment progress report. These are one of the most important features to make sure you include in your inventory analysis because it tells you where your inventory is at all times. A few key components to make sure you’ve included are:

Status of Order

You can see whether the order has been completed, shipped, or delivered.

Which Channel

Knowing which channel your inventory is being sent out with is important because each selling channel has different process flows and fees associated with failed shipments. If you are using dropshipping for certain channels, for example, you can easily tell here which orders this applies to. Additionally, this helps you avoid penalties for shipment errors, such as not shipping an Amazon Prime order within the time limit.

Which Carrier

Make sure the carrier is included in your inventory report so that you know which labels should be printed for a specific order.

Cut Off Time

This is essential, especially since each carrier has a specific cut off time. A cut off time indicates what specific time your carrier arrives at your warehouse daily. Your pick list is dependent on this time frame since it must be ordered according to which carrier arrives first. Cut off times help determine the order of batch picking waves that improve the workflow of your warehouse.

Time to Ship

This gives you a clear indicator of how many days you have to ship an order.

Shipping Option

This shows which carrier option you are going to use for a specific order.

Shipment Tracking Number

Finally, this is an essential component to include in your online inventory report. It is  important because you will push this number back to sales channels so that the consumer can see it. Additionally, this way you can also see the delivery status of the order.

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5 Reasons Why SKUs are Essential for your Amazon Store

It might seem unnecessary to use item numbers or stock keeping units (SKUs) for your Amazon store. You might wonder if you need it if your product portfolio is limited, or your warehouse is small. Is it worth it?

SKUs are actually essential to helping you reach your full sales potential, regardless of the size of your inventory.

What Is An SKU?

An SKU is an identification code which is used to track a product for inventory and sales purposes. It may also include some details about the product such as color, size and other variations. You should always assign a unique SKU to a product, even if you sell the same product with another seller. Don’t fret; even if they’ve got different SKUs, they would have the same UPC (Universal Product Code). An SKU helps in many different ways, such as categorizing products easily, measuring inventory levels, purchasing accurate items, and helping make communication between you, the vendors and your customers smooth and efficient.

If you want to create a system that’s easier to work with and uses your own item numbers, here are some of our recommendations:

  • Make unique SKUs — SKUs should be unique, so that you don’t accidentally use an SKU again for a product you don’t sell anymore
  • Keep the SKUs short — SKUs mostly will be maximum 30 characters long. If it is longer than 30 characters then it becomes hard to interpret. Even don’t make it longer than 7 characters
  • Avoid spaces or special characters — Use simple characters to make it simple and easy for you to understand
  • Avoid using product title in your SKU — Instead, use short and brief descriptions for the product title
  • Never start your SKU with a zero – Never use “0” in the beginning of an SKU as the Excel spreadsheet will strip out the 0 and mess everything up

No matter the size of your product portfolio, what you sell, who your customer is, or what channel you sell through, each and every product should be identified with an SKU. Logiwa Inventory Management Software makes it very easy and fast to set SKUs.

So I bet you’re wondering why SKUs are right for you. Here are five reasons SKUs are important for your Amazon store:

 Easy and Effective Inventory Management

It is much easier to measure your inventory when you identify every item that you sell with an SKU. You may think it could be easy enough to use the item’s name, title or description to measure your inventory level, but think about how many errors that could produce! You might not write down the same description every time, and another employee might have a different idea about what the product could be called. By avoiding streamlining this process, you are setting your business up for failure. However, if you have a unique set of 7 characters that identify the product, it’s easier to put it in an excel file, write down the inventory quantities against it, and differentiate it from other similar items. Worried about having to generate and track all these SKUs? An inventory management software will provide SKUs for each item and track them internally.  

 

Multiple Sales Channels Connect through SKU

Imagine that you are selling your products on multiple sales channels such as Amazon, Ebay, Walmart, or Shopify. All these channels require an SKU or UPC to list your product. If you already have SKUs assigned to your products, it will be easier for you to match different listings of the same item amongst all your sales channels. If you use an inventory management software, it will act as a sort of hub for all your sales channels by connecting to other sales channels and feeding them the correct inventory quantity for the right product.

Customers Search for Items by SKU

You also have the chance to use UPC codes as your SKU. Logiwa’s Inventory Management Software is built for Amazon Sellers to do just that. If you are sourcing from other manufacturers, using these UPC codes as your SKU code is a fast, convenient option to help you reach your sales potential. Potential customers searching a specific item mostly search with UPC codes because of its ubiquitousness. By using your UPC as your SKU code, your store will pop up in their search results, providing you the chance to sell to this potential customer.

SKUs Make Returning Customers’ Lives Easier

Imagine your customer is very happy with the product he purchased 4 months ago and he wants to buy it again. Instead of searching through thousands of similar products, they will most likely just search for the item’s UPC code.

Even if you are selling your own handcrafted items, assigning an SKU code helps your customer find your work again. By assigning an SKU code, your returning customer will definitely find the exact item they’re looking for!

Returning customers with SKU access can also it to get to your product page much faster than those who don’t. All they have to do is search for the number, which they can usually copy and paste from their order or shipping confirmation emails, and they’ll end up right on the product page they want especially for mobile shoppers. It’s fast and easy for your customers, and great for your business too!

Other Retailers Use SKUs to Search for Items

Many merchants on Amazon and other sales channels also sell their products to other retailers as wholesales. Every experienced merchant knows that the best way to search and find a product is the SKU code or the UPC code. SKUs also help you increase your wholesales figures, which helps other retailers search for your item and find your store, every time.

As you can see, it can be pretty beneficial to have a WMS like Logiwa for your inventory needs. A WMS  not only streamlines the sales process, but also leaves less room for errors. Check out whether Logiwa is right for you with our free demo!

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Everything You Ever Need To Know About Dropshipping

You may have heard of dropshipping as a fast and easy way to make money. While it can be a very easy way to sell online with none of the hassle of managing a warehouse yourself, dropshipping can be a complicated process and one to be cautious about. While you may not be managing your inventory yourself, there are multiple reasons to be aware of how dropshipping can affect you and your business. Curious about what dropshipping is, how it works, and whether it is right for you? Fear not, we’ve got our answers all lined up for you.

 

What is Dropshipping?

It’s good to get clarification on what dropshipping is before you start it. Dropshipping is a method in supply chain management where a seller doesn’t physically keep the products they sell. Instead, the store or seller will have an item shipped once it has been ordered directly from a third-party facility. This third-party wholesaler or manufacturer will be the keeper of the inventory, so that you as a seller do not have to.  This means that the products you sell are fulfilled per purchase, and you as a seller never actually see or handle the product that is being shipped.

 

So, Is It Right For Me?

Is dropshipping worth it? Why is dropshipping beneficial to me? There are multiple advantages to dropshipping your inventory:

dropshipping-pros-cons

Advantages

No Investment Necessary

If you’re a small-to-medium sized business just starting out, chances are you don’t have the capital to invest thousands of dollars in inventory you might not be able to sell for months. It can be difficult to start up a business from scratch. Having an option like dropshipping is great because your money is not tied up in inventory all the time, which means you have more resources that you can allocate to things your business needs, such as sales or marketing efforts.

More Products to Sell

You can sell a large variety of products with dropshipping because you are not buying the inventory yourself, and not choosing where to spend your money.  If your third-party wholesaler has many different products to offer, now you do too!

You Can Do It From Anywhere

Nowadays you can run a business from anywhere with a stable internet connection and a laptop, and dropshipping makes that even easier. This method gives you the freedom to be anywhere and grow a successful business, whether you’re just one person or a group of over 200.

Less Risk

If the reason that you’ve been holding back from starting your business is because of the risk, dropshipping’s got your back. Since you’re not managing a warehouse, buying, tracking or shipping inventory, or handling returns, you can even start selling as a side hobby, with little to no risk to you! That way, you have the autonomy to change your mind in the future, or even scale higher. Your future is in your hands!

 

Disadvantages

So I bet dropshipping is sounding pretty good to you right now. What’s better than a low-risk, high-reward scenario? The problem is, using dropshipping for your business might not always be high-reward. There are certain factors you should definitely consider before pursuing dropshipping as an option for your business:

High Competition

Have you ever tried to buy a poster from Amazon, and noticed the exact same one for a much lower price but no reviews next to it? That is a great example of the perils of dropshipping. Since it is so easy to set up your own business with dropshipping, lots of people might have had the same idea– and since your inventory isn’t completely uniquely yours, your third-party seller might send that same item out to multiple dropshippers. When there’s a lot of competition, it can sometimes be difficult to make a sale.

Customer Service Issues

As we mentioned above, a third-party wholesaler will send a list of the amount of inventory they have available to send out per day. Let’s say your third-party wholesaler has 100 pieces of inventory available. This amount does not get updated or modified if an item is shipped or returned by another seller besides yourself. This means that if you get 40 orders in a day, but the other three sellers get 30 each, you’ve overdrawn from the inventory available to you. Plus, you’re not in charge of shipping methods. This means you won’t get all your orders out in time, and your customers won’t be happy. If you manage your own warehouse, however, you can easily keep track of your shipping and inventory levels, and prevent negative inventory levels from happening.

If They Make A Mistake, It’s On You

Besides the inventory issues outlined above, it can be even more important to manage your own warehouse as your business continues to grow. A higher amount of orders can mean more problems, which leads to less sales. Your third-party wholesaler might also make mistakes like neglecting to fulfill an order, which you then have to take the blame for from customers.  If you are in charge of your own inventory, however, you can always have safety stock in place to avoid this issue. Plus, while it might seem tedious to calculate your own ATP, you’ll always know how much inventory you have at all times and where your orders are.

Shipping Can Get Complicated

If you’re selling from multiple different drop shipping retailers, you’ll have to keep track of all those shipments in order to send the right tracking number to the right customer. Plus, you’ll get charged a different rate from each one in the process, making accounting confusing for you.

dropshipping-WMS

 

How Managing Dropshipping Using a WMS Can Help

To understand how an inventory management system, (also known as a WMS) can help you as a dropship business, you should first understand how the sales channels are used.

Your sales channel, such as Amazon, will know that the items you have placed for sale are dropship items. Once the order has been placed, you will have to download the sales orders into an excel file. Next, you will send this information to the third party vendor manually. The vendor will then match the order with a tracking number, and then send that tracking number back to you. You then send out that tracking order to your customer or back to the sales channel to be paired with the order.

Sounds complicated, right?

Your business doesn’t have to be a constant game of email tag. Using an inventory management system can help you streamline this process. With a WMS, your sales channel order can go through one of two processes:

  1. The WMS downloads the drop shipment order and notifies you. Next, a tracking number is matched to each order. The warehouse updates the system manually, which gets sent to selling channels.
  2. The WMS downloads the drop shipment orders and notifies the third-party wholesaler. They then execute the shipment process on your behalf using your inventory management system. You can then log into your WMS and view this. This option gives you slightly more control on the entire drop shipping process.

As you can see, it can be pretty beneficial to have a WMS like Logiwa for your dropshipping business needs. A WMS  not only streamlines the sales process, but also leaves less room for errors. Check out whether Logiwa is right for you with our free demo!

Do you need an Inventory Management System?

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The Top 3 Ways MultiChannel Retailers Can Prepare for the Holiday Rush

Multichannel retailers and merchants can’t wait for the holiday season. Think about it— the top ten biggest shopping days of the year are in December, and Black Friday is nearly just as important. Sales are huge during the holidays, and as more sales move online, it’s more important than ever to be prepared. If you are a multi-channel retailer who sells through various sales channels such as Amazon, Ebay, Shopify, and brick and mortar stores, the pressure will be on you to meet holiday revenue expectations. This means you’ve got to tackle challenges such as inventory management, order fulfillment and returns handling as smoothly as possible. Where should you even start? 

Here are the top 3 things to prepare for before the mad holiday rush:

Inventory Accuracy

If you don’t have real-time accurate inventory data, you will always have the risk of overselling and missing sales opportunities. Multichannel retailers will face very high demand during the holidays. If your inventory count isn’t accurate, you could end up stockpiling inventory. This means more money is tied down to inventory that might not sell, which can be a large issue once the holidays are over. If you don’t have inventory accuracy and inventory visibility, it can feel like you are driving in a thick fog. Your inventory figure will drive your business during the holiday season, so it is essential to prepare by being as accurate as possible. 

This is also important from an asset valuation perspective in general. For example, inventory is an asset in your balance sheet. If you don’t know your accurate inventory figure, you wouldn’t be aware of your assets.

Backorder Density

Multichannel retailers create backorders to anticipate unexpected demand. However, a high backorder rate can also indicate of lack of demand forecasting and cause missing inventory further down the line. Consumers are time-sensitive, especially during the holiday season— you can’t give a holiday gift after the holiday is over! In order not to miss any sales opportunities, you should prepare by creating a demand forecast and comparing it to the last holiday season, decide on adequate inventory levels, and consider the lead times of your vendors before purchasing. The best way to prepare for this is by setting a safety stock level in your inventory management system. It will not only reduce the backorder density, but it will also help with customer satisfaction, and help you get the orders you need out there ASAP.

Accurate Order Fulfillment

Returns represent very high costs for a retailer. You should do everything you can to reduce order returns to both save you money and save on the stress of having to handle returns during the busy holidays. In fact, a recent survey stated that 50% of online order returns are caused by inaccurate order fulfillment. Avoid the headache, and don’t shoot yourself in the foot by making it even harder on yourself than it has to be! A great way to reduce your return rate is by making sure your order picking, packing and shipments are 100% accurate by implementing barcode scanning. This is a must for any retail inventory management system. Barcode scanning makes sure that all pick, pack, and ship operations are complete, straight from the warehouse employee’s mobile devices. 

Do you need an Inventory Management System?

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How an Amazon Merchant Can Upgrade From Tracking to Managing Inventory

We always say “Don’t let your business manage you”. But what exactly does that mean?

A significant factor that is often underestimated in the quest to achieve sustainable growth as an Amazon merchant is warehouse and inventory management. Your inventory is your greatest asset, but it can easily become one of your biggest liabilities if not managed effectively.

Managing inventory begins with tracking it. Barcode scanning can help you achieve accurate inventory in your warehouse in real-time. Understanding key metrics like sales velocity, sell-through rate, and inventory turnover is critical to making decisions that allow retailers to have the right SKU in the right place at the right time.

The more online channels you sell through, new products you launch, or new markets you enter, the harder it becomes to manage your warehouse and fulfill orders from different channels. Managing your inventory effectively means making smart business decisions based on proactively anticipating and taking actions against future demand. We’ve got three easy ways to do just that below. Here are some ways to achieve simpler inventory management:

Centralization

The first step in effective inventory management is having an accurate inventory and establishing order fulfillment across all your warehouses and sales channels. However, the more channels you sell through and the more items that you are selling, the more challenging it will be to manage all business data. Most of the retailers have separate e-commerce sites or marketplaces and a brick-and-mortar store. This makes it a highly challenging environment to gather all the data you need for 100% accuracy.  

The best way to do this is through centralization. Centralization helps achieve inventory and historical demand visibility, and gathers data from all available sales channels into an umbrella inventory management system and order fulfillment system. Once all this data is gathered in a single, central location, you’ll be able to run comprehensive reports to quickly determine which channels and SKUs are performing best, which products might sell faster on different channels, and much more. If you make this your top priority, you will be able to make smarter, faster and targeted decisions.

Automate Operations

Tracking inventory is a manual process that often leads to a lot of number crunching and endless excel files. This laborious process has been proven to cause time-consuming redundancies as well as costly productivity losses and errors. Based on an industry survey, 62% of errors are caused by manual processes in inventory management.

You can reduce redundancy and increase productivity by automating manual processes. This streamlines multi-channel sales, purchasing, inventory, fulfillment, and warehousing processes. Automated operations ensures that you can easily receive purchase orders and fulfill customer orders. Plus, you can make decisions immediately without depending on someone else to finish their job. In inventory management and order fulfillment, the most cost-effective and common technology is barcode scanning. Barcode scanning and transactions on mobile devices can also help achieve this goal.

Improve Profitability

Retailers lose $1.75 trillion every year due to overstocks, out-of-stocks, and preventable returns. The root cause of all these problems lies in inventory mismanagement. With centralized data and automation, retailers gain a holistic and clear picture of all their inventory and order fulfillment operations and make smarter and faster decisions.

Stockouts, overstocking and preventable returns are the 3 most costly problems for a retailer. An inventory management software like Logiwa offers the capability to sort out most of these problems. When you add operational savings such as making your warehouse management team more productive, the gain out of an inventory management system is more than significant.

 

Do you need an Inventory Management System?

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Why Available To Promise is Essential For Every Retailer

When you first hear about Available to Promise, or ATP, you might think of something pretty complicated. It’s actually much more simple than you might think.

Available to Promise is an essential piece to managing your supply chain. ATP is the projected amount of inventory you have left available to sell, not including allocated inventory. Unlike safety stock, which is used to buffer a retailer should a flux in demand or delays occur, ATP  is what you have available in the near future. Think of ATP as a numerical commitment to your selling channel or customer that a specific amount of inventory is available to sell.

Available to Promise is yet another calculation that depends on a number of factors such as the amount of inventory you currently have, the amount of sales orders you have per day, and whether a purchase order is coming in or not. The rules for calculating available to promise are pretty simple:

 

ATP-formula-Logiwa

 

Unlike safety stock, which may stay at a stable allocated number, your ATP can change pretty easily as a result of fluctuations. It can even be negative! While a positive value indicates you have inventory available to sell, a negative value indicates that your inventory is below your safety stock quantity.

 

 

positive-negative-ATP

 

 

As you can see in the graphs above, an ATP’s value is generally determined by a variety of factors. These factors could be anything from the current inventory level to the sales orders to when a purchase order arrives. Safety stock is included to demonstrate how your ATP can hit negative levels despite allocating safety stock.  

 

Why is it valuable to use a WMS for Available To Promise?

 

ATP is an essential tool to have in your toolbox when managing your inventory. You can prevent missing a sales opportunity by knowing whether your ATP is negative or positive. This helps you know whether you should create a purchase order or sell inventory to free up money for other products, such as sales. A warehouse management system (WMS) uses this value to create a well-constructed report like the one below. These reports are the key that will help you determine how to proceed. WMS’s can create new purchase orders if the amount is negative to help you avoid overselling. In fact, they can also notify you if your ATP is positive to help your sales increase. This in turn increases customer satisfaction. It’s a win-win!

 

Available-To-Promise-Logiwa-WMS

 

 

Curious about what other ways a WMS can help you? Check out our free demo, or feel free to contact us below!

 

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The Challenges of Selling in Multi-channel; Amazon, Ebay, Walmart, Shopify, Magento

 

It is great to see entrepreneurship covering the whole country. That’s one of the things about the US that is envied by many countries in the world. It is a trend for retail entrepreneurs to sell their products online as merchants. All these shopping venues such as Amazon, Ebay, Walmart, Shopify, Magento offer great opportunities on their own anyway by drawing enormous traffic and providing access to millions of online consumers. It is never enough for a small and medium business entrepreneur. Why not access to more consumers? That’s how a startup grows.

Challenges of Multi-channel Inventory

Although it brings growth, there are some challenges that the online sellers should overcome. You might end up overselling a product when you sell in multiple selling channels such as Amazon, Ebay, Walmart, Shopify, Magento. Say that you have “Product A” inventory of 10 in your warehouse. You pushed 10 inventory figure to all selling channels. So all your stores in Amazon, Ebay, Walmart, Shopify, Magento show 10 available products to consumers. And you sold 3 product A in 1 hour on Amazon. You have 7 available items in your warehouse remaining after allocating 3 to captured Amazon orders. You should make your available inventory 7 in all your stores on Amazon, Ebay, Walmart, Shopify, Magento. Else, you might sell 10 more items on the rest of the selling channels in the rest of the day, leaving you with 3 oversold items. This case is going to destroy your customer service level and cause bad reviews and ratings.

Challenges of Selling in Multi-channel

Missing sales opportunities is also as painful as overselling. You might have products received into your warehouse or have cancelled orders or have items that can be dropshipped from your supplier’s warehouse during the day. You need to add these into your inventory on all your stores in Amazon, Ebay, Walmart, Shopify, Magento.

By using a proper inventory management software, you can build API connection to all your sales channels and update your inventory in real-time. Please take a look at Logiwa solutions to sort out the challenges in multi-channel selling.

 

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How to Boost Online Sales and Manage Holiday Season Inventory

Merchants think about the holiday season all throughout the year. It is a trillion dollar market and online merchants can’t afford to miss any sales opportunities on such as Amazon, eBay, Walmart.

The holiday numbers are massive and every small business online retailer wants to take a bite of it. That’s why they increase their inventory level, create new selling channels, spend in marketing. Does all that boost their online sales and provide them to take a larger bite of the holiday sales?

 

How to Boost Online Sales and Manage Holiday Season Inventory

Multi-Channel Accurate Inventory

Absolutely not! Even if you have higher level of inventory in your warehouse during that season than the rest of the year, you need to manage that inventory accurately and real-time. So that you can push your accurate inventory figure to your multi-channel selling channels and not miss any sales opportunities or oversell. If you can’t show your accurate inventory quantity to online consumers, what is the point of having all that inventory sitting in your warehouse!

The best way to achieve accurate and real-time inventory is to do barcode scanning for all your inventory transactions. And also to have real-time connection to all your sales channels.

Handling Order Returns By Customers

The biggest challenge of the holiday season is dealing with the inventory returns. If you don’t use an inventory management system to make order fulfillment more accurate, you might end up receiving tons of inventory returns. The inventory management system will make sure you ship the right items against the right order. Besides the inventory management system will also help you handle the returned products and make them saleable products again.

See how Logiwa WMS  will help you tackle these challenges and help you boost your online sales.

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Cloud vs On-premise Inventory Management for Online Retail

Many people are now using cloud environment for personal needs such as photos, videos, documents such as on iCloud, Google Cloud. Hence, people have been using emails on the cloud for a very long time with the invention of the internet with Yahoo, Hotmail. Having most of our personal items on the cloud avoids risks and saves costs for us. So why not having our business systems on the cloud?

Cloud vs On-premise Inventory Management System

Companies can use inventory management software in 2 different models.

On-premise systems that they can host on their own servers and purchase licenses by making a huge initial investment. Also, the companies worry about the maintenance, accessibility, disaster recovery issues.

Cloud based systems that are hosted on the provider’s cloud environment and get software-as-a-service by paying for monthly subscriptions. They don’t require any initial investment and they provide all tools to support your operations throughout your growth process.

Therefore, cloud based inventory management systems offer many advantages that don’t consume any energy of the user company. They provide leverage without requiring any initial capital.

Cost Effectiveness

I prepared an example below to use an inventory management software with 5 users both in cloud-based and on-premise model. As seen in below chart, the total budget for a cloud based inventory management software is less than an on-premise inventory management software even after 7 years.

In below example; the total subscription fees for 5 users is $1,500/month and there is a $3,000 setup fee in the cloud-based model.

Whereas, the licenses for an on-premise model can be purchased for $50,000 and the budget for the implementation will be $50,000.

Below graph doesn’t include the hardware costs that should be covered in the on-premise model. Still cloud based model is much cost effective than the on-premise model.

ROI calculation - Cloud On-premise Inventory Management

Cloud Technology

Cloud based inventory management software is more advanced from a technology perspective. They are all web based applications and they offer the chance to work on any device anywhere on the planet. On the other hand, cloud-based inventory management software providers are more agile when it comes to improving the software, making developments and automatically updating the marketplaces, shopping carts and warehouses. Cloud-based inventory management software users always use the most recent versions of their systems.

Scalability

Growing online retailers need systems that grow with them. They want to increase their use of the system as their warehouse operations grow. That’s why the subscription model and the option to add more users etc. is always more attractive.

Additionally, the technology of the inventory system should also allow scaling the business. Not all cloud-based inventory management system is capable of scaling all the way. Some of them can’t support operations eg. after 20 users. Even if you opt to go with a cloud based inventory software, the online retailers should be careful to select a system that will support their growth for the next 5 – 6 years at least.

Fast Onboarding

Cloud-based systems are more advanced from a technology perspective and they are more agile when it comes to setup and configuration of the systems. Because these systems offer standardized fulfillment business models and processes. Within a standardized fulfillment model, they are considering all business cases that they will face and they build more flexible systems. The flexibility brings fast onboarding such as in 1-2 weeks. Whereas on-premise systems take 4-6 months to implement and start using.

Risk Free

What happens when you make an investment in an on-premise inventory management software and you are not happy at the end of 12 months. Either you will keep investing for extra development to customize it or you will change it. There is high risk involved in the on-premise model.

However, when you start using a cloud-inventory management software and if you are not happy at the end of 12 months, you just unsubscribe from the provider’s services. There is no risk involved.

 

Would you like to learn more about Logiwa WMS?

Meet one of our industry experts to see our product’s free live demo.

 

Connecting your Warehouse to the Online Global Village

Online Retailers Enjoy Easily Synchronizing Real-time Inventory

In today’s online global village, without geographic boundaries, the customer likes the product in any sales channel, orders through any sales channel and gets the product delivered anywhere and return it through any carrier. Logiwa Inventory Management Solution provides an efficient and proactive warehousing infrastructure and technology to online retailers. Online retailers enjoy easily synchronizing real-time inventory and orders across multiple channels and carriers.

Push Real-time Inventory to Marketplaces and Shopping Carts

The most critical process in today’s online retail business is real-time inventory sharing throughout all sales channels.  Online retailers can not avoid overselling and miss-selling with classical pen and paper methodsRequired priorities, allocations, and reservations should be included in the inventory system through this cooperative infrastructure. Logiwa Inventory Management Solution connects your warehouse to online marketplaces such as Amazon, eBay, WalMart, Sears, Amazon Prime, Amazon FBA, Houzz, Wayfair, Magento, Shopify, BigCommerce, OpenSky in a couple of minutes and allows you to synchronize:

  • Incoming shipment orders
  • Real-time inventory
  • Shipment tracking number
  • Shipment status
  • Returns by customer

Logiwa Inventory Management Solution

 

Rate Shopping – Get best Possible Price

Logiwa is designed to automate parcel shipment process for e-commerce players to provide seamless service to customers. Automatically integrate to carriers such as UPS, USPS, FedEx, Canada Post, DHL, ShipStation in order to:

  • Automatically shop shipping rates and have the system select the most feasible carrier to decrease shipping costs.
  • Automatically capture shipping rates at individual carriers, making data accessible from one place.
  • Search and display all available carrier and service options available for your shipment.
  • Do all your shipping with any parcel or LTL carrier from one solution.

 

 

Integrate ERP, Accounting and Post Systems

Integrate effortless with ERP, accounting, and post systems. Logiwa Order Management System automatically captures item data and purchase orders push back receipt confirmation against purchase orders and captures item data. It also pushes client billing reports for 3PLs. Logiwa is integrated with Xero, Quickbooks, and Vend.

 

Run Logiwa Inventory Management Solution to handle any retail warehouse

Logiwa Inventory Management Software provides smart and innovative ways to make order fulfillment more efficient. You can simply harmonize e-commerce order fulfillment and store replenishment in the same warehouse – with no hassles.

 

Would you like to learn more about Logiwa?

Meet one of our industry experts to see our product’s free live demo.