Frequently Asked Questions
Why is inventory optimization important?
Inventory optimization is important because it keeps logistics costs to a minimum, and helps you bypass issues like stockout (or overstock) events. Optimizing inventory is really a best practice for ecommerce retailers, as it increases efficiency, reduces overhead, and delights customers.
What are good inventory optimization solutions?
There are many ways to go about optimizing your inventory, though some of the most prominent (and practical) include: having a reliable source of truth for your inventory levels, implementing demand forecasting, automating inventory management, and leveraging warehouse technology.
What is the difference between inventory optimization and inventory management?
Inventory management is centered on ordering, storing, and using a company's inventory (that is, their raw materials, work-in-progress items, and finished products). Inventory optimization, on the other hand, is all about finding the appropriate inventory levels to meet customer demand and provide quality service, but at the lowest cost to your store.
When is the best time to optimize inventory?
The best time for optimizing inventory is as soon as possible; the longer you wait to enact inventory optimization, the more time and money you’ll inevitably waste. That’s why your company should prioritize optimization whenever it has the resources and bandwidth to do so.