Inventory tracking refers to the process of logging inflows, outflows, transactions, and overall stock levels at any given time.

Inventory tracking is the most important part of your overall inventory management method. Without accurate tracking, the historical data you use will be inaccurate, making he entire process ineffective.

Most inventory management systems are now cloud based, making it easier to track your inventory from any place at any given time.

Inventory positioning refers to the physical location of your stock, and allows you to meet customer demand while minimising your costs.

For example, if you are a UK based business but you are looking to enter the global market, you may struggle with global fulfilment due to only having a UK based warehouse. Although customers are becoming more comfortable with the process of cross-border purchasing, customers may be put off by long delivery times and excess costs, which is why you will benefit from placing your stock in a warehouse closer to your targeted customers.

Order management is what helps businesses fulfil their customers orders accurately, and when using an inventory management system, this can help with ensuring orders cannot be placed for out of stock items.

Not only this, but order management systems (OMS) can improve the fulfilment process by sending automatic updates to customers.

A large part of good inventory management revolves round accurate data analysis, which can then be used to make informed decisions about your business.

Its a continual process of reviewing data, allowing you to understand what is working and what is not working.

Using historical data allows you to prepare for peak periods, ensuring you avoid stock-outs during this time.

As mentioned, using historical data can also help you accurately calculate re-order and safety stock levels too, which also helps you avoid over/under stocking.

The JIT system is a model whereby the optima amount of stock is in the right place at the right time, allowing businesses to reduce their overall storage costs by ensuring there is never excess stock on site. It is always just the right amount.

This method also allows businesses to reduce wastage due to obsolescence and damage, while also reducing their production costs, shipping costs, insurance costs, etc.

The JIT method works in accordance with customer demand. However, the issue with this is that if customer demand suddenly increases, the business may not have enough stock to meet demand, resulting in missed sales.

Economic order quantity (EOQ) is a formula based method, and is largely calculated by using historical data. This method ensures you have an optimal level of stock over a certain period of time.

EOQ aims to find a balance between having enough stock to meet customer demand, while ensuring you aren’t overstocking and paying excess storage fees.

Since this method is based on historical data, it won’t take into account that sudden increases in demand can occur, which can lead to some inaccuracies. Not only this but if you start with inaccurate historical data, your calculations will therefore become inaccurate.

Read more about the EOQ method here

DSI is a financial model of inventory management and refers to the process of measuring the average number of days it takes for new inventory to turn into a sale.

Using DSI will allow you to have a better understanding of; your overall business health, how effective your marketing strategies are, and how effective your sales strategies are.

If your DSI is long, this is an indicator that something isn’t working. You could either just be struggling to shift stock, or you may be holding too much stock, making it harder to shift in accordance with what your current demand is.

FIFO is an abbreviation for ‘First In First Out’, while LIFO is the opposite, standing for ‘Last In Last Out’.

The FIFO method is a process whereby stock received first, is the first stock to be sent out. For example, if you receive a batch of stock on Monday, and another on the following Monday, orders placed by customers will be fulfilled with the first batch of stock and then the second batch once all those products are gone.

LIFO, is the opposite. Stock received most recently will be used before stock received initially.

Both methods have advantages and disadvantages, read more about FIFO and LIFO below.

Forecasting demand, or demand planning, is the process of taking historical data and combining it with predictive analysis to calculate the future demand for your products.

Demand planning can be extremely helpful and insightful when done correctly, and is crucial for planning how much stock you will need when demand does increase.

Read more about demand planning here;

Finding the balance between when to re-order stock, and how much to re-order is crucial.

If you re-order too much stock, you may be left with too much stock and this can lead to excess storage or disposal fees (depending on the product).

On the flipside, re-ordering stock too late will result in stock-outs, missed sales, or back-orders (which are not ideal either).

Using the re-order point formula (ROP) ensures you always have the right amount of stock as and when you need it. Read more about ROP here;

Unfortunately, not all stock can be a best seller. Sometimes you will have stock that doesn’t sell as well as you hoped it would.

If the demand or interest for the product isn’t there, it is probably in your best interest to remove the stock from your line in order to avoid excess storage or disposal fees.

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Our cloud-based system, MintSoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

We also run our own in-house system that can provide accurate information for the following;

• Notify you of stock replenishment needs
• Notify you of when and when not to re-order
• Ability to track inventory
• Ability to automate orders
• Respond to trends

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

So, never worry about handling a return again, because TSP has you covered.

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.