Ecommerce businesses often lose significant revenue due to poor inventory management. This episode highlights how to move beyond basic ERPs and spreadsheets to implement proactive forecasting and even leverage backorders to optimize cash flow and meet customer demand, even in uncertain supply chain conditions.
Key takeaways
Implement a dedicated inventory planning solution that goes beyond basic ERP capabilities to provide prescriptive analytics and identify potential revenue loss from stockouts.
While starting, use detailed Excel sheets to track inventory by SKU, calculate daily sales averages, and factor in supplier lead times to inform reorder points. Prioritize early investment in SKU tracking and barcode systems.
Utilize backorders as a strategic tool to pre-finance production and capture sales for highly sought-after or unique products, especially when facing supply chain delays. Clearly communicate wait times to customers.
Integrate inventory data from all sources (Shopify, 3PLs, fulfillment software) into a single context to get an accurate view of your supply chain and mitigate risks.
Focus on "ordering deadlines" rather than "stockout dates." Account for supplier lead times to ensure purchase orders are placed proactively and avoid revenue loss.
This episode of the Ecommerce Coffee Break Podcast features a conversation with Bahadir Efeoglu, CEO & Co-founder of Fabrikatör. We discuss how to forecast, plan and execute your inventory operations. On the Show Today You’ll Learn: The best approach to start with inventory planningHow to find out which products to restock and in what quantitiesInsights into why back ordering is importantHow to utilize back orders as a market research toolLinks & Resources Website: https://www.fabri...
Frequently asked about this episode
What does this episode say about dtc strategy?
Implement a dedicated inventory planning solution that goes beyond basic ERP capabilities to provide prescriptive analytics and identify potential revenue loss from stockouts.
What does this episode say about inventory management?
While starting, use detailed Excel sheets to track inventory by SKU, calculate daily sales averages, and factor in supplier lead times to inform reorder points. Prioritize early investment in SKU tracking and barcode systems.
What does this episode say about operational efficiency?
Utilize backorders as a strategic tool to pre-finance production and capture sales for highly sought-after or unique products, especially when facing supply chain delays. Clearly communicate wait times to customers.
What does this episode say about supply chain optimization?
Integrate inventory data from all sources (Shopify, 3PLs, fulfillment software) into a single context to get an accurate view of your supply chain and mitigate risks.
What does this episode say about dtc strategy?
Focus on "ordering deadlines" rather than "stockout dates." Account for supplier lead times to ensure purchase orders are placed proactively and avoid revenue loss.
