how to achieve optimal inventory management of your online store
TRANSCRIPT
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Smart inventory management is one of the key aspects of running a
successful online sales business, especially with omnichannel
approach, which provides extraordinary customer experience.
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Optimal stock levels are the goal. And, once the goal is defined, let's
see how to achieve it.
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Predictive Analytics employs the power of data, transforms them into useful information, and gives clear
predictions and suggestions on how to achieve the ideal stock level of
each product.
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Time is the most expensive, and critical resource, and Predictive Analytics is the master in serving the right information
just in time when we need them.
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While you work in sales, what really happens in the background, is that in
real time, your smart software system collects valuable data from
the following sources:
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• stock levels
• orders
• customer product search.
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It then submits data to advanced software algorithms for sales
forecasting.
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And the analysis is done on the basis of data from the past, from real time
(sales that is happening now), and from sales forecasts.
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Bad inventory management systems are often in conflict with systems for
pricing, promotions, planning, and product allocation.
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But, high quality Predictive Analytics solution, tailored to the
needs of a specific online retail business, doesn't separate different
business sectors, and takes into account all factors that influence
demand.
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By improved demand forecasting, the product allocation is vastly
improved, together with replenishment plans and strategies
as well.
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Predictive Analytics executes active analysis of all influencing factors, and
gives recommendations about transferring products from shops
where they are selling slowly because of low demand, to stores where there is higher demand, and possible shortages
of the product are likely to appear.
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Like this, the optimal stock levels in all locations are achieved, there are no shortages, and no overstocks.
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Moreover, you avoid unnecessary sales, markdowns, and discounts in
stores with less demand for the specific product, and preserve higher margins in stores with higher demand.
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Just to give you a hint about how advanced these algorithms are, let's say that your advanced Predictive
Analytics system takes into account:
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different combinations of product colors, sizes, prices and margins, stock levels in each store, cost of
transferring the product to different locations, and all of this happens in
real time, so you can have information and support for making decisions the same day, and possibly
the same hour.
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Savings from this system are huge, and profits significantly go up as
well.
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To be precise, the statistics from retailers who already use Predictive
Analytics show:
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• significant decrease in inventory costs of up to 40%
• remarkable increase in sales volume of up to 20%
• 3.5 times faster turnover
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Wise choice of an eCommercesolution which already implements
Predictive Analytics with an advanced Dashboard is what
modern online retailers should pay attention to. Gains are worth the
investment.
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If you have any comments or suggestions please feel free to let us know!
+1 800 577 [email protected]
linkedin.com/company/cerait-inc.
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Toronto, ON M4W 3R8CANADA