Buying goods from the producers & manufacturers and selling them to other businesses is called Wholesaling. If not performed in an organized way, it is a tremendous task for the organizations. The B2B eCommerce model has the potential for high profitability as many products make it simple for the logistics to get out of hand. However, it takes work to manage and make money from wholesaling.
The wholesale inventory management system can be complex as it might prove the organization’s best friend or greatest downfall. If you set the organization for consistent business growth when you do inventory management correctly, it can be disastrous if you are under-optimized and unorganized. This article is fully loaded with the top inventory management tips and techniques to use inventory systems to keep your business in the “growth” category instead of the “disaster” category.
Meaning of Wholesale Inventory Management
A wholesale inventory management system means acquiring, keeping, tracking, and monitoring goods for B2B transactions. An organization must manage its entire inventory, primarily focusing on the activities associated with the goods an organization purchases from the producer and selling them to other organizations, wholesalers, or retailers. Best inventory management software for wholesale contains numerous functions, such as:
- Computing reorder points, timing inventory replenishment and economic order quantities
- Optimization of the storage
- Logging products accepted from the producer
- Monitoring wholesale inventory levels
- Conducting regular inventory audits
- Submitting purchase orders for wholesale inventory
Why Is Wholesale Inventory Management Important For Your Business?
Wholesale inventory management is essential for any company that frequently purchases and sells goods. To operate without hassle, the wholesale inventory needs to be well-managed, kept in stock, and accurately tracked for every other supply chain activity, including order processing, warehouse management, fulfilment, shipping, and last-mile delivery. Overstocking and shortages interrupting the entire supply chain might result from problems with inventory counts, missing or damaged inventory, or timing. However, effective wholesale inventory management increases visibility across the entire supply chain and ensures that the flow of goods is seamless and organized. As a result, productivity increases, expenses are reduced, and lead times are shortened throughout your business. Some of the crucial reasons wholesale inventory management is essential for your business are:-
- From the time that products are delivered from a supplier, through the time that they are held in a warehouse, to the time that they are packaged and dispatched to the customer, wholesalers frequently have to move vast numbers of products through their internal inventory system. Due to the high frequency of orders, errors are inescapable in large-scale processes. Having good inventory visibility is essential for a large business. It is advantageous to have an inventory system that lets management know the location of each order or shipment and prompt replies to client requests, errors, or other necessary alterations to an order.
- Successful wholesalers are aware of their warehouses and their management. A wholesaler needs to make the most of their space because inventory holdings have expenses such as warehouse rent, human resources, ventilation, and security. This entails making the most of the available space and arranging stock inside intelligently to make it easier to obtain commonly ordered commodities.
- For every wholesaler, maintaining good customer connections is essential. Customers, whether they are retailers, distributors, or other businesses, should, at the very least, have open lines of contact with wholesalers. The outcome is generally better when the wholesaler and the customer exchange more information. For instance, a wholesaler can schedule their purchases on their customer demand projections if they are fully aware of them. Additionally, it will aid the customer’s planning if they know any restrictions placed on the wholesaler’s ability to obtain the required stock.
- Keeping the proper inventory on hand for your company’s needs is another strategy to enhance inventory efficiency. When you retain too much inventory, your holding costs will increase, but when you hold too little, you risk shortages and strained client relations. It is impossible to predict how much inventory you will require in advance. You are only able to provide the best estimate. This calls for thorough research of variables like consumer demand and market conditions, and here inventory management software excels. This analysis might be done on a spreadsheet. However, inventory management software that gathers data from your activities and converts it into usable displays is more precise, beneficial, and practical.
Most of your inventory problems can be resolved with technological support. As we have discussed above, having an excellent wholesale inventory management system can save your efforts and time, avoid significant headaches, and ensure that all crucial tasks stay intact.
Several tools are available to reduce your burden if you are a startup and need an extensive high budget for sophisticated automation software. If you are worried about accounting-related tasks, QuickBooks B2B e-commerce provides you with automated accounting software that will reduce your costs and eliminate the possibility of error.