{"id":9866,"date":"2023-08-18T06:10:00","date_gmt":"2023-08-18T06:10:00","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/inventory-tools\/"},"modified":"2025-09-18T16:40:30","modified_gmt":"2025-09-18T16:40:30","slug":"inventory-tools","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/inventory-tools\/","title":{"rendered":"The Best Inventory Tools and Techniques for Ecommerce in 2026"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-abc-analysis\">ABC analysis<\/a><\/p>\n\n\n\n<p><a href=\"#h-just-in-time-jit-inventory\">Just in time (JIT) inventory<\/a><\/p>\n\n\n\n<p><a href=\"#h-economic-order-quantity-eoq\">Economic order quantity (EOQ)<\/a><\/p>\n\n\n\n<p><a href=\"#h-safety-stock\">Safety stock<\/a><\/p>\n\n\n\n<p><a href=\"#h-reorder-point-formula\">Reorder point formula<\/a><\/p>\n\n\n\n<p><a href=\"#h-batch-tracking\">Batch tracking<\/a><\/p>\n\n\n\n<p><a href=\"#h-fifo-and-lifo-methods\">FIFO and LIFO methods<\/a><\/p>\n\n\n\n<p><a href=\"#h-perpetual-inventory-management\">Perpetual inventory management<\/a><\/p>\n\n\n\n<p><a href=\"#h-barcoding-amp-automation\">Barcoding &amp; automation<\/a><\/p>\n\n\n\n<p><a href=\"#h-inventory-management-software\">Inventory management software<\/a><\/p>\n\n\n\n<p><a href=\"#h-real-world-scenarios-of-inventory-management-tools-and-techniques-in-action\">Real-world scenarios of inventory management tools and techniques in action<\/a><\/p>\n\n\n\n<p><a href=\"#h-unlock-streamlined-inventory-management-with-shipbob\">Unlock streamlined inventory management with ShipBob<\/a><\/p>\n\n\n\n<p><a href=\"#\">Inventory tools FAQs<\/a><\/p>\n<\/div>\n\n\n\n<p>Managing ecommerce inventory can make or break your bottom line. Whether you hold too much inventory or not enough, a lack of <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-optimization\/\">inventory optimisation<\/a> can increase costs and lower profits.<\/p>\n\n\n\n<p>Getting <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a> right requires the right tools and techniques to better forecast demand and track sales trends. <\/p>\n\n\n\n<p>While you can track inventory manually through spreadsheets, this quickly becomes overwhelming and you\u2019ll find yourself missing some key features and functionalities. <\/p>\n\n\n\n<p>Fortunately, there&#8217;s several inventory management tools on the market that are designed for ecommerce businesses of all sizes. And, there are plenty of inventory techniques that you can easily implement at a low cost.<\/p>\n\n\n\n<p>In this article, we break down 10 inventory tools and techniques.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-abc-analysis\">ABC analysis<\/h2>\n\n\n\n<p>ABC analysis is an inventory categorization method that prioritizes items based on how valuable they are.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works\">How it works<\/h3>\n\n\n\n<p>This technique segments inventory into three categories labelled A, B, and C.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cA\u201d items are high-priority, fewer in number, and contribute significantly to overall value. <\/li>\n\n\n\n<li>\u201cB\u201d items fall in the middle<\/li>\n\n\n\n<li>And \u201cC\u201d items are the most abundant but contribute the least to the total value.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful\">When it\u2019s useful<\/h3>\n\n\n\n<p>ABC analysis is a particularly useful <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-audit\/\">inventory audit<\/a> technique when a company has a wide range of products with varied sales volumes and values. <\/p>\n\n\n\n<p>It helps identify high-priority items that require more attention due to their substantial impact on revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits\">Benefits<\/h3>\n\n\n\n<p>ABC analysis allows businesses to focus on items that are most valuable to the company. <\/p>\n\n\n\n<p>It aids in better <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-control\/\">inventory control<\/a>, enhances customer satisfaction by ensuring high-value items are always in stock, and improves cash flow by reducing unnecessary stockpiling of low-value items.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>ABC analysis can be overly simplistic as it doesn&#8217;t consider factors like seasonality or product launches. <\/p>\n\n\n\n<p>Additionally, it doesn\u2019t accurately account for changing consumer behaviors or trends.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-just-in-time-jit-inventory\">Just in time (JIT) inventory<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.shipbob.com\/blog\/just-time-inventory-ecommerce\/\">just in-time<\/a> inventory management strategy <a href=\"https:\/\/www.thebalancemoney.com\/just-in-time-jit-inventory-management-393301\" target=\"_blank\" rel=\"noreferrer noopener\">originated in Japan<\/a> and is the method Toyota uses to manage its manufacturing and inventory processes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-0\">How it works<\/h3>\n\n\n\n<p>A JIT <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-strategy\/\">inventory strategy<\/a> aims to cut down on inventory costs by ordering and receiving <a href=\"https:\/\/www.shipbob.com\/blog\/finished-goods-inventory\/\">finished goods<\/a> only as they are needed, thus reducing <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-levels\/\">inventory levels<\/a> and <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-carrying-costs\/\">carrying costs<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-0\">When it\u2019s useful<\/h3>\n\n\n\n<p>JIT is most useful for businesses that operate with fluctuating demand levels, where holding large amounts of inventory can be risky and costly. <\/p>\n\n\n\n<p>It&#8217;s also beneficial for businesses that produce high-value goods where the cost of storing and managing inventory can be significant.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-0\">Benefits<\/h3>\n\n\n\n<p>JIT inventory reduces the costs associated with carrying and storing excessive inventory. It also minimises the risk of <a href=\"https:\/\/www.shipbob.com\/blog\/obsolete-inventory\/\">obsolete inventory<\/a> and waste, leading to overall increased operational efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-0\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>JIT requires reliable suppliers and strong <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-visibility\/\">inventory visibility<\/a>, which might not always be feasible, especially for small businesses. <\/p>\n\n\n\n<p>It also leaves little room for errors or delays, as any disruption can halt production, potentially harming customer relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-economic-order-quantity-eoq\">Economic order quantity (EOQ)<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/economic-order-quantity\/\">Economic order quantity<\/a> (EOQ) uses the help of a formula to determine an ideal unit quantity for upcoming purchase orders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-1\">How it works<\/h3>\n\n\n\n<p>The EOQ model uses three variables:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/holding-costs\/\">Holding costs<\/a> (H): the cost of storing inventory on hand<\/li>\n\n\n\n<li>Annual demand (D): sales demand year-over-year<\/li>\n\n\n\n<li>Order cost (S): the amount an order costs per purchase<\/li>\n<\/ul>\n\n\n\n<p>The formula for determining your economic order quantity is as follows:&nbsp;<\/p>\n\n\n\n<p><strong>EOQ = Square Root of: [2SD] \/ H<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-1\">When it\u2019s useful<\/h3>\n\n\n\n<p>Businesses with a consistent, predictable demand for their products often benefit from EOQ. This is because the formula relies heavily on a consistent demand rate, and any fluctuation could make the calculations less accurate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-1\">Benefits<\/h3>\n\n\n\n<p>Utilising EOQ helps companies maintain low inventory levels, reducing inventory costs while ensuring enough stock is on hand to meet demand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-1\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>The main drawback of EOQ is that it assumes constant demand, which is only sometimes the case, especially in volatile markets. <\/p>\n\n\n\n<p>Furthermore, it doesn&#8217;t account for discounts associated with bulk buying or fluctuations in ordering or holding costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-safety-stock\">Safety stock<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/safety-stock\/\">Safety stock<\/a>  additional quantity of an item kept in stock to prevent stockouts and serves as a buffer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-2\">How it works<\/h3>\n\n\n\n<p>To calculate an accurate amount of safety stock to have on hand, you\u2019ll need to know the following for each SKU:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum daily usage<\/li>\n\n\n\n<li>Maximum lead time<\/li>\n\n\n\n<li>Average daily usage<\/li>\n\n\n\n<li>Average lead time<\/li>\n<\/ul>\n\n\n\n<p>You can then plug these numbers into a <a href=\"https:\/\/www.shipbob.com\/safety-stock-calculator\/\">safety stock calculator<\/a>. Or, you can simply use the following formula:<\/p>\n\n\n\n<p><strong>(Maximum Daily Usage x Maximum Lead Time) \u2013 (Average Daily Usage x Average Lead Time)<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-2\">When it\u2019s useful<\/h3>\n\n\n\n<p>Demand can be unpredictable. During times when <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-forecasting\/\">inventory forecasting<\/a> isn\u2019t perfect or there\u2019s a sudden spike in demand, safety stock can be the difference between capturing a sale and losing a customer to a competitor.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-2\">Benefits<\/h3>\n\n\n\n<p>Maintaining safety stock can reduce <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockout costs<\/a> while also helping businesses meet unexpected demand \u2014 keeping customer satisfaction high. It also doesn\u2019t tie up as much capital as <a href=\"https:\/\/www.shipbob.com\/blog\/overstocking\/\">overstocking<\/a> would.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-2\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>Safety stock input variables need to be accurate, otherwise, you could end up ordering too much or too little. C<\/p>\n\n\n\n<p>However, inventory management technology and cloud-based fulfilment solutions often include built-in tools to help calculate safety stock through historical order data and automated <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-report\/\">inventory reports<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-reorder-point-formula\">Reorder point formula<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-point-formula\/\">reorder point formula<\/a> (ROP) is triggered when the inventory level of a particular product falls to a pre-determined point.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-3\">How it works<\/h3>\n\n\n\n<p>ROP allows businesses to reorder stock just in time to <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-replenishment\/\">replenish inventory <\/a>before it runs out. It can be calculated with the following formula:<\/p>\n\n\n\n<p><strong>Reorder Point (ROP) = Demand During Lead time + Safety Stock<\/strong><\/p>\n\n\n\n<p>The first part of the equation takes into account the lead time in days and multiplies it by the average rate of daily sales (demand).&nbsp;<\/p>\n\n\n\n<p><strong>Lead Time Demand = Lead Time x Average Daily Sales<\/strong><\/p>\n\n\n\n<p>The second part of the equation calculates how much safety stock you\u2019ll need. This is done using the same safety stock calculation discussed above.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-3\">When it\u2019s useful<\/h3>\n\n\n\n<p>The reorder point formula is beneficial in saving time and helping busy business owners stay on top of inventory replenishment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-3\">Benefits<\/h3>\n\n\n\n<p>Using the reorder point formula can help prevent stockouts, reduce excess inventory, improve cash flow, and enhance forecasting. <\/p>\n\n\n\n<p>It takes into account lead time and average daily sales which provides a more accurate picture of how many units are currently needed to avoid stockouts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-3\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>This method requires reliable lead times, otherwise, the reorder point might be miscalculated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-batch-tracking\">Batch tracking<\/h2>\n\n\n\n<p>Batch tracking, or <a href=\"https:\/\/www.shipbob.com\/inventory-management\/lot-tracking\/\">lot tracking<\/a>, is a method used to trace goods along the <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-distribution\/\">warehouse distribution<\/a> chain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-4\">How it works<\/h3>\n\n\n\n<p>Batch tracking involves keeping track of goods based on batches in which they were produced or received. Each batch is given a unique identifier, or serial number, which allows businesses to trace any issues or defects back to their source.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-4\">When it\u2019s useful<\/h3>\n\n\n\n<p>Batch tracking is especially useful for businesses dealing with food items, cosmetics, pharmaceuticals, or any products where quality control and traceability are essential.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-4\">Benefits<\/h3>\n\n\n\n<p>Batch tracking can improve product traceability, facilitate more efficient recalls, improve customer safety, and help maintain high-quality control standards.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-4\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>Implementing a batch tracking workflow can be time-consuming and requires an efficient system to manage and monitor batch information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fifo-and-lifo-methods\">FIFO and LIFO methods<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/fifo\/\">FIFO<\/a> (First-In, First-Out) and <a href=\"https:\/\/www.shipbob.com\/blog\/lifo\/\">LIFO<\/a> (Last-In, First-Out) are popular methods for valuing inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-5\">How it works<\/h3>\n\n\n\n<p>FIFO assumes that the oldest inventory items are sold first, while LIFO assumes that the most recent inventory items are the first to be sold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-5\">When it\u2019s useful<\/h3>\n\n\n\n<p>FIFO is particularly useful in industries where products are perishable or subject to obsolescence. On the other hand, LIFO can be advantageous for tax purposes, especially during periods of inflation.&nbsp;<\/p>\n\n\n\n<p>Both methods have their advantages and disadvantages. The key in either case is to have an <a href=\"https:\/\/www.shipbob.com\/inventory-integration\/\">inventory integration<\/a> with your <a href=\"https:\/\/www.saasadviser.co\/software\/accounting-software\">accounting software<\/a> \u2014 whether that be Quickbooks, Xero, or something else. <\/p>\n\n\n\n<p>This helps streamline the accounting process and makes tracking inventory costs, revenue, and profits far more efficient and accurate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-5\">Benefits<\/h3>\n\n\n\n<p>FIFO can lead to a more accurate representation of inventory on the balance sheet, while LIFO can reduce income tax during times of rising prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-5\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>FIFO may inflate taxable income during inflation, while LIFO results in more complex accounting processes and isn\u2019t as user-friendly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-perpetual-inventory-management\">Perpetual inventory management<\/h2>\n\n\n\n<p>A <a href=\"https:\/\/www.shipbob.com\/blog\/perpetual-inventory-system\/\">perpetual inventory system<\/a> manages stock in real time. It involves software and automation tools, rather than inventory being tracked manually.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-6\">How it works<\/h3>\n\n\n\n<p>A perpetual inventory management system continually updates inventory records for each sale, purchase, and return as they occur. This system often relies on <a href=\"https:\/\/www.shipbob.com\/blog\/universal-product-codes-upc\/\">barcode<\/a> scanning and software systems to track inventory movements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-6\">When it\u2019s useful<\/h3>\n\n\n\n<p>Perpetual inventory management is beneficial for ecommerce businesses of all sizes. However, especially so for those doing <a href=\"https:\/\/www.shipbob.com\/blog\/multichannel-inventory-management\/\">multi-channel fulfilment<\/a> and\/or have a high volume of sales.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-6\">Benefits<\/h3>\n\n\n\n<p>Using a perpetual inventory system can provide <a href=\"https:\/\/www.shipbob.com\/inventory-management\/real-time\/\">real-time inventory<\/a> data, reduce the risk of human error, and can help easily <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\">forecast demand<\/a> more accurately.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe utilise ShipBob\u2019s Inventory API, which allows us to programmatically retrieve real-time data on how many units of each product are currently stored at ShipBob\u2019s warehouses. We currently use this API to generate custom reports to tie this inventory data into our accounting platforms.\u201d <\/p>\n<cite><a href=\"https:\/\/www.shipbob.com\/blog\/waveform-lighting\/\">Waveform Lighting Team<\/a><\/cite><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-6\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>The main downside is that it requires an initial investment in technology. You will have to take a look at your current tech stack and decide whether or not to invest in the right technology to automate inventory tracking.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-barcoding-amp-automation\">Barcoding &amp; automation<\/h2>\n\n\n\n<p>Barcoding and inventory tracking automation has changed the way business manage inventory by saving time and money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-7\">How it works<\/h3>\n\n\n\n<p>Barcoding involves assigning unique barcodes to each product, which are then scanned using <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-scanner\/\">inventory scanners<\/a> (AKA barcode scanners), to automatically update <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-records\/\">inventory records<\/a>. <\/p>\n\n\n\n<p>This process reduces the need for manual data entry, thereby improving the <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-control\/\">inventory control<\/a> process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-7\">When it\u2019s useful<\/h3>\n\n\n\n<p>Whether it\u2019s <a href=\"https:\/\/www.shipbob.com\/blog\/shipping-barcode\/\">shipping barcodes<\/a> or inventory barcodes, barcoding and automation are both useful for businesses of any size. <\/p>\n\n\n\n<p>As sales volumes begin to increase, having a barcoding system in place becomes even more important as it reduces the risk of human error and inventory management hiccups. I<\/p>\n\n\n\n<p>t\u2019s also particularly useful for <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/subscription-box-fulfillment\/\">subscription box-based businesses<\/a> in which the <a href=\"https:\/\/www.shipbob.com\/blog\/kitting\/\">kitting<\/a> process involves multiple SKUs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-7\">Benefits<\/h3>\n\n\n\n<p>Barcoding and automation can drastically improve inventory accuracy, speed up the picking and packing process, minimise human errors, and provide real-time inventory updates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-7\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>Implementing a barcoding and automation system requires an initial investment in technology, training, and onboarding. It also relies heavily on the accuracy and quality of the barcodes used.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inventory-management-software\">Inventory management software<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/inventory-management\/software\/\">Inventory management software<\/a> is the most common solution that simplifies the process of tracking and managing inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-it-works-8\">How it works<\/h3>\n\n\n\n<p>Inventory management software automates the process of tracking inventory across multiple sales channels. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-it-s-useful-8\">When it\u2019s useful<\/h3>\n\n\n\n<p>An inventory management platform is beneficial for businesses of all sizes and especially useful for those managing inventory across multiple locations or sales channels. <\/p>\n\n\n\n<p>It can be integrated with a <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management system (WMS)<\/a> to track inventory across the <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-supply-chain\/\">ecommerce supply chain<\/a> and provide more visibility. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-8\">Benefits<\/h3>\n\n\n\n<p>Inventory management software includes features such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Real-time inventory tracking<\/li>\n\n\n\n<li>Ecommerce platform integration<\/li>\n\n\n\n<li>Inventory forecasting<\/li>\n\n\n\n<li>Reorder notification alerts<\/li>\n\n\n\n<li>Automated inventory reports <\/li>\n\n\n\n<li>And more, depending on the software<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-drawbacks-amp-other-considerations-8\">Drawbacks &amp; other considerations<\/h3>\n\n\n\n<p>Inventory management software requires an upfront investment and a small learning curve to use effectively. <\/p>\n\n\n\n<p>Fortunately, many <a href=\"https:\/\/www.shipbob.com\/product\/omnichannel-fulfillment\/\">omnichannel fulfilment <\/a>providers offer built-in inventory management tools. This allows you to fully outsource fulfilment to them and you can track inventory in real time through a cloud-based platform.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>In terms of tracking inventory, we use ShipBob for everything \u2014 to be able to track each bottle of perfume, what we have left, and what we\u2019ve shipped, while getting a lot more information on each order. <\/p>\n\n\n\n<p>The analytics are super helpful. We download Excel files from the ShipBob dashboard all the time and use them to analyse everything from cancellations, to examining order weights, to checking on whether ShipBob is shipping orders on time. <\/p>\n\n\n\n<p>Even the way their warehouse receiving orders (WROs) work for sending inventory is very straightforward.\u201d <\/p>\n<cite>Ines Guien, Vice President of Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/dossier\/\">Dossier<\/a><\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-real-world-scenarios-of-inventory-management-tools-and-techniques-in-action\">Real-world scenarios of inventory management tools and techniques in action<\/h2>\n\n\n\n<p>To highlight how much of an impact the right inventory tools and techniques can benefit a business, here are some real-world examples. <\/p>\n\n\n\n<p>The CEO &amp; Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/mdacne\/\">MDacne<\/a> makes use of ShipBob\u2019s analytics tools to help plan inventory reorders. They can see when certain SKUs are going to run out and even set up email notifications so that they\u2019re alerted when a SKU has less than a certain quantity left.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cShipBob\u2019s analytics tool is also really cool. It helps us a lot with planning inventory reorders, seeing when SKUs are going to run out, and we can even set up email notifications so that we\u2019re alerted when a SKU has less than a certain quantity left. There is a lot of value in their technology.\u201d<\/p>\n<cite>Oded Harth, CEO &amp; Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/mdacne\/\">MDacne<\/a><\/cite><\/blockquote>\n\n\n\n<p>Harley Abrams, Operations Manager of <a href=\"https:\/\/www.shipbob.com\/blog\/superspeed-golf\/\">SuperSpeed Golf, LLC<\/a> uses ShipBob\u2019s technology to get a quick visual overview of all their units, regardless of the location.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;On the supply chain side, I just throw in what we placed at the factory into a WRO in the ShipBob dashboard, and I can see how many units we have on-hand, what\u2019s incoming, what\u2019s at docks, and so on. I can see all of those numbers in a few seconds, and it makes life so much easier.\u201d <\/p>\n<cite>Harley Abrams, Operations Manager of <a href=\"https:\/\/www.shipbob.com\/blog\/superspeed-golf\/\">SuperSpeed Golf, LLC<\/a><\/cite><\/blockquote>\n\n\n\n<p>Additionally, when it comes to safety stock, having inventory stored in multiple locations can be a game changer. ShipBob&#8217;s expansive presence across the US and internationally allows businesses to diversify their inventory distribution.<\/p>\n\n\n\n<p>Just take the case of fast-growing brand <a href=\"https:\/\/www.shipbob.com\/blog\/touchland\/\">Touchland<\/a>: thanks to ShipBob&#8217;s various locations, the business is able to quickly fulfil orders and reduce shipping times for customers in the US. <\/p>\n\n\n\n<p>This is also helpful especially when weather challenges happen; being able to have safety stock at different locations to ship from allows for a more seamless supply chain.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe sell flammable goods that need to be shipped via ground, so ShipBob has been a great ally as they have fulfilment centres all over the US, facilitating a 2-3 day delivery time for any customer in the US. <\/p>\n\n\n\n<p>This is helpful especially when weather challenges happen; being able to have different locations to ship from allows for a more seamless supply chain.\u201d <\/p>\n<cite>Andrea Lisbona, Founder &amp; CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/touchland\/\">Touchland<\/a><\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-unlock-streamlined-inventory-management-with-shipbob\">Unlock streamlined inventory management with ShipBob<\/h2>\n\n\n\n<p>Whether done manually or technology is implemented, inventory management can be challenging.<\/p>\n\n\n\n<p>That\u2019s why ShipBob offers a vloud-based <a href=\"https:\/\/www.shipbob.com\/product\/wms\/\">warehouse management system<\/a> (WMS) that incorporates the right tools and techniques to help you stay on top of your inventory.<\/p>\n\n\n\n<p>With ShipBob, you can <a href=\"https:\/\/www.shipbob.com\/blog\/black-claw\/\">centralise inventory<\/a> across multiple locations to get an accurate overview of your stock levels in real time. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cShipBob\u2019s Inventory Placement Program provides visibility into inventory movement that\u2019s absolutely key for anyone running a business. The data is easily accessible, and it shows exactly how inventory is being split across ShipBob\u2019s network of warehouses. <\/p>\n\n\n\n<p>It\u2019s also really great for our product reconciliation, because you can see what\u2019s received at the hub locations and individual fulfilment centres. There\u2019s a lot more clarity, and it\u2019s so much simpler to check that our shipped inventory was received.\u201d<\/p>\n<cite>Mithu Kuna, Founder and CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/baby-doppler\/\">Baby Doppler<\/a><\/cite><\/blockquote>\n\n\n\n<p>On top of that, more locations mean a greater probability of storing inventory closer to your customers. Being able to <a href=\"https:\/\/www.shipbob.com\/blog\/baby-doppler\/\">ship from Zones 1-4<\/a>, for example, allows you to deliver products faster and cheaper than shipping from a single location.&nbsp;<\/p>\n\n\n\n<p>Lastly, reducing the transit time from supplier to warehouse means you don\u2019t have to overstock, reducing inventory charges. Additionally, ShipBob\u2019s FreightBob solution offers <a href=\"https:\/\/www.shipbob.com\/blog\/sharkbanz\/\">50% faster ocean freight shipping<\/a> which greatly reduces the time it takes to replenish your inventory.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p>We not only cut down our shipping time from Hong Kong to LA significantly, but even saved money doing it. Thanks to ShipBob\u2019s freight program, we had no stress and were super well-stocked for the rest of the year and into 2022, without any kind of inventory issues that have plagued us in the past. <\/p>\n\n\n\n<p>We were in a tough spot, and I don\u2019t think we would have been able to fulfil all of our retail orders across every single SKU throughout the entire BFCM holiday period without it. It came at a really clutch moment!\u201d <\/p>\n<cite>Nathan Garrison, Co-Founder and CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/sharkbanz\/\">Sharkbanz<\/a><\/cite><\/blockquote>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote-plus\/\" target=\"_blank\" rel=\"noreferrer noopener\">Request WMS Quote<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Inventory tools FAQs<\/h2>\n\n\n\n<p>Below are answers to common questions about inventory tools.<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How can inventory tools aid in demand forecasting?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Inventory tools can collect and analyse sales data over time to identify patterns and trends. This information can be used to predict future sales, helping businesses plan their inventory accordingly.<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How do inventory tools play a role in managing returns?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\"><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Inventory tools can streamline the returns process by automatically updating inventory levels when a return is processed. They can also track the reasons for returns and assist in managing the reselling, recycling, or discarding of returned items.<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Level up your inventory management process by learning about the different inventory tools and techniques for ecommerce businesses.<\/p>\n","protected":false},"author":110,"featured_media":9868,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-9866","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>10 Inventory Management Tools for Ecommerce Success<\/title>\n<meta name=\"description\" content=\"Level up your inventory management process by learning about the different inventory tools 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