The entire inventory management workflow is often the slowest part of the business for many online merchants. And for a good reason as well - they do it by hand.
I say an hour lost at a bottleneck is an hour out of the entire system. I say an hour saved at a non-bottleneck is worthless. Bottlenecks govern both throughput and inventory. - Eliyahu M. Goldratt
Most common problem of inventory management workflow
Handling inventory management manually has a ton of setbacks to work out before you’re ready to improve other aspects of your business.
However, if you operate your business alone, anything you spend time on is technically a bottleneck. So, while it’s a little different for a one man army, it’s just as relevant and important to optimize the inventory management workflow.
Thus far, we’ve established that to optimize the inventory management workflow, you’ll need to strengthen the weakest links. Also, it doesn’t matter how many people take part in your business for this concept to work.
Strengthening the weakest links
For the sake of clarity, let’s specify the two main reasons for bottlenecking:
- Lack of technology applied;
- Imperfect information.
First, let’s cover the second cause. Lack of experience, judgement and other intellectual resources cause these problems. These bottlenecks generally occur after the first cause is more or less taken care of.
Obviously, removing these bottlenecks varies by case. All things considered, the best way to go about this is using performance reports, market analysis and similar means. If this is your current focus - check articles tailored to this issue.
The first cause, however, can be solved universally. To be more precise - these inconveniences of inventory management workflow can be instantly taken care of by software like Multiorders.
Meaning, the vast majority of bottlenecks in these fields will no longer be an issue thanks to microchips and algorithms (click categories for more information):
- Stock control
- Order management
- Purchase orders
- Product bundling / kitting
- Shipping labels
Before you commit to anything, you’ll certainly want a test run. Have two weeks of our services on us!