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Jun 14, 2022

A Complete Guide To Omnichannel Inventory Management System

Consumer behaviors may change, but inventory will always be at the center of retail operations. It has become vital for businesses to invest in the right inventory management system. Customers want a smooth shopping experience that requires an efficient inventory management system. 

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What is an Omnichannel Inventory Management System?

An Omnichannel inventory management system enables retailers to manage their inventory across multiple channels, including online stores, brick-and-mortar stores, marketplaces and social media channels. With an Omnichannel inventory management system, retailers can track inventory levels, automate tasks across multiple channels, and analyze data. 

Modern Omnichannel inventory management systems allow businesses to handle complex supply chains while ordering from multiple vendors. They offer real-time inventory visibility essential to determine when to reorder specific items. Moreover, inventory tracking allows businesses to track products in storage and motion while providing real-time updates on their order status. 

An Omnichannel inventory management system helps businesses cut costs through real-time access to stock levels and business insights. Additionally, retailers can adjust stock levels and fulfillment arrangements.  

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The Market Size of Inventory Management Solutions

In the digital era, Omnichannel inventory management systems are becoming more popular among retailers. The inventory management software market will reach an estimated USD 3.82 billion in 2028. Moreover, in the forecast period of 2021 to 2028, the inventory management software market will grow at a CAGR of 6.12 %. 

Market Size of Inventory Management Solutions

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Essential Features of Omnichannel Inventory Management Software

Cloud-based inventory management systems are becoming increasingly popular with retailers selling across multiple channels.

  • Inventory Sync: Automatically adjust inventory in multiple online stores with offline orders.
  • Integrations: Integrate online stores such as Magento and Shopify with inventory across multiple locations.
  • Inventory Management: Effectively track inventory stock levels and the exact location of products to improve operational efficiency. 
  • Barcoding: Edit and scan barcodes to update your inventory database in real-time.
  • Product Management: Fully manage your products through stock transfers, cost tracking, and stock adjustments. 
  • Sales Order Management: Create sales orders and access financial data such as freight charges, invoices, and credits.
  • Purchase Order Management: Automatically adjust stock levels and create purchase orders. Moreover, easily access financial data, including payment and credit data.
  • Customer Management: A conveniently accessible CRM system allows a grouped view of customers and sales orders. 
  • Vendor Management: Manage purchase orders from each vendor and define vendor pricing for specific products.
  • Audit Log: This allows seamless tracking of consumer activity and offers the ability to filter specific modules.
  • Dynamic Reports: Access real-time reporting options, including product/sales reports, low stock details, and order summaries. 
  • Low Stock Alerts: Define low stock thresholds to trigger alerts automatically to maintain sufficient inventory.
  • Consignment Sales: Have total control over each module's deleting, viewing, and editing. Moreover, assign consignment roles to specific employees to maintain data integrity.

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Inventory Control Techniques to Optimize Your Stock 

  1. Integrated Inventory Management: With an Omnichannel inventory management system, businesses can sync their inventory across multiple channels, including offline stores and online stores (Magento, Shopify).
  2. Maintain Stock Visibility: True inventory visibility enables businesses to analyze inventory levels in real-time, reducing the risk of understocked or out-of-stock inventory.
  3. Stock Inventory Across Locations: A centralized inventory management system allows sellers to conveniently stock inventory in different warehouses. Additionally, bar code scanning automatically updates adjusted inventory levels and product locations.  
  4. Demand Forecasting: A modern inventory management system helps retailers make better-informed supply decisions through historical data analysis.
  5. Carry out Inventory Audits: Inventory management software enables businesses to conduct audits without discrepancies.

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Inventory Management Challenges and Solutions

  • Integration with online stores: Many retailers face the problem of syncing their inventory levels with online stores. XStak Omnichannel inventory management system enables sellers to sync their inventory with platforms such as Shopify and Magento via secured API.
  • Offline orders & inventory sync: Businesses face the problem of manually adjusting their online store inventory levels with offline orders. XStak allows sellers to automatically adjust stock levels in online stores with their offline orders.
  • Inventory visibility: Sellers may lose customers due to understocked and out-of-stock items. Cloud-based inventory management systems (XStak) instantly show inventory levels in multiple channels and locations.
  • Inventory tracking: XStak offers inventory tracking for real-time data accuracy and reliability, eliminating the hassle of manually searching for specific products.
  • Inventory forecasting: Sellers face issues of high inventory storage costs and overstocking. With the XStak Omnichannel inventory management system, sellers can analyze previous data and make accurate forecasts for purchase orders.  
  • Reporting to CEOs: Employees show daily sales records and inventory reports to the CEO. However, with XStak, these reports are auto-generated without any human error. 
  • Expediting orders: Expediting order fulfillment and managing inventory are common problems for many retailers. XStak features inventory and order sync across multiple locations that instantly report low stock levels.

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The competitive edge of using the XStak Inventory Management System

XStak inventory management system offers businesses real-time order and inventory sync between multiple physical locations and online stores. It is conveniently integrable with ERP and POS systems. With XStak, sellers can track all purchase orders and their shipping status. 

  • XStak allows businesses to fully sync their inventory levels with online stores such as Magento, WordPress, and Shopify.
  • With the XStak Inventory Management System, businesses can sync their online inventory levels on platforms such as Magento and Shopify with offline orders.
  • Business Intelligence: With the XStak inventory management system, sellers can access sales, inventory, and marketing insights. 
  • Inventory Optimization: Businesses can optimize their inventory levels by analyzing historical data, forecasting purchase orders, and stock shuffling.
  • ROI Measurements: Retailers can calculate the return on investment (ROI) online and offline. 
  • Low Stock Alerts: A low stock alert is triggered whenever a specific product is understocked.
  • Multiple Locations: Businesses can view inventory levels across multiple locations in real-time.
  • Vendor Management: Retailers can conveniently handle purchase orders from multiple vendors with an easy-to-use interface. 
  • Purchase and Sales Orders Management: Create purchase and sales orders while automatically adjusting stock levels. Additionally, gain access to financial data, including freight charges and due payments.  
  • Recommendation Engine: Optimize inventory through stock shuffling, ML-based recommendations, and analyzing the sell-through rate. 

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Key Inventory Management System Features of Small and Midsize Businesses

A cloud-based inventory management system for small and mid-sized enterprises should have some basic features, including inventory control, barcoding/scanning, and demand forecasting. However, before buying any solution, businesses should also seek advanced features such as supplier/purchase management, POS integrations, and real-time inventory reporting.

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Inventory Management System Average Cost

Most cloud-based inventory management systems charge a monthly subscription fee from USD 40 to 80. Businesses that rely more on profits based on seasonal sales have to pay the same monthly subscription fee all year. It is pertinent to mention that the XStak inventory management system does not require a monthly subscription as it follows a usage-based pricing model.

With XStak's Omnichannel inventory management system, sellers can optimize stock levels and conveniently manage inventory across multiple locations. Experience the XStak inventory management system by trying the free demo

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