A lot of companies still depend so far on traditional inventory management and this would negatively affect the growth of their business, especially with the huge development that the inventory management industry is witnessing, and in general, inventory management is a systematic approach to ordering, storing and selling both raw materials and finished products as it is the process through which the products are tracked and organized for the period owned by the company.

and in this article we will discuss what traditional inventory management is and what are the most important updates it faces, and we will also show you the best solutions to get rid of traditional inventory management.

What is traditional inventory management?

Inventory management has many goals and the primary goal is to reduce storage costs and achieve the best possible capital investment from the project.

Many people do not realize the true cost of inventory, which may reach 30% of the value of the capital,

And it may seem to you that a small percentage does not affect the expenses, but it will affect your profits significantly.

Also, traditional inventory management techniques can negatively affect your profits as well as your ability to grow and expand.

What is meant by traditional inventory management is the way in which inventory is managed in a manner that focuses on improving forecasting continuously.

However, from the huge developments, there has become more importance to the need for more accurate forecasts,

And therefore there is an urgent need for a new model that enables a proactive approach to solve inventory problems before they occur.

This is something that traditional inventory management cannot do, because it only focuses on solving inventory management problems by:

• Improving the point-of-order process.
• Adjusting buffer stock levels.

Challenges for Traditional Inventory Management

There are many challenges facing traditional inventory management. As mentioned, traditional inventory management focuses solely on solving inventory management problems by optimizing the point-of-order process or adjusting buffer stock levels.

But at the moment, this is not enough to meet the expectations and desires of customers and the fluctuations of the market as well.

Here are the major updates facing traditional inventory management:

1. Having insufficient visibility of demand

One of the major updates facing traditional inventory management is its lack of adequate demand visibility,

As it relies on mere forecasting and is not able to track inventory at the moment and forecast appropriately.

2. Existence of isolated supply chains

The second challenge facing traditional inventory management is that this type of management is not able to efficiently track inventory levels between incoming and outgoing logistics operations or even within a single warehouse.

This hinders expansion and growth in the market, and companies lose the ability to control inventory, all of which will contribute to raising logistical costs and stock running out.

And all of this will eventually lead to lower levels of customer satisfaction with the service provided.

3. Inability to accurately forecast demand

Traditional inventory management suffers from insufficient forecasting of demand accurately, and this will cause major problems.

Especially since one of the most important elements of inventory management is the ability to accurately forecast demand, and therefore an imbalance in accurate forecasting will result in:

• A loss of competitive advantage.
• The inability to make the right decisions.

Solutions for Traditional Inventory Management

Companies need to have a complete view of their inventory, in order to be able to take full control of their inventory and fulfill customer orders in the best possible way.

Even now some are using traditional inventory management not knowing what the right solutions are for it.

Here is a collection of the best traditional inventory management solutions that will help you grow your business and maintain accurate inventory forecasting:

1. Online inventory control solutions

One of the best traditional inventory management solutions is to monitor and control your inventory online.

Also implementing inventory control online helps you overcome traditional inventory control problems.

2. Remove manual processes

The second best traditional inventory management solution is to get rid of manual processes and introduce automated online inventory management systems.

Which will help you effectively in providing a clear view of the expenses related to your inventory, thus managing and controlling it better.

3. Improve customer satisfaction

Controlling your inventory online will help you improve customer satisfaction, and this is perhaps one of the best traditional inventory management solutions.

This will help customers to know the availability of the items they want, as well as get a notification if the items they want are available.

This will also enable customers to track the purchase and delivery process until it reaches them.

Meaning that this will provide customers with more transparency, which will enhance customer satisfaction with the service provided.

4. Save resources and reduce waste

Automated systems will help you save a lot of time and costs as well, as automated systems give you:

• Ability to control inventory.
• Access data in real time.
• Information about the product life cycle.

This will help warehouse staff in ensuring that old products are selected so that they are sold first before they expire and incur a lot of losses.

The world is currently facing a severe supply chain crisis, and in general, supply chains mean the arrival of the product to the consumer, through the process of transportation from the place of production to the port, then transportation to the port in any country or even within the same country, then transportation to consumers around the world, and cause problems associated with chains The global supply of products is in short supply during the Corona pandemic, which led to a significant increase in prices, as a result of lack of supply and increased demand, and in this article we will discuss the supply chain crisis and how it occurred, as well as how countries will confront it.

Supply Chain Crisis Risks

There are huge risks to the supply chain crisis, which has left store shelves empty with long shipping delays.

Countries are working hard to try to solve this crisis that negatively affects global and local economies as well.

Last year the global economy stopped working, but this year the wheel has turned again and is caught in one of the largest supply chain crises in history.

The new indicators confirm the severity of the problem, the failure of the world to find a quick solution, and how the great crisis of 2021 is still getting worse in some regions.

One of the most important risks of the supply chain crisis is that it will cause companies to lose materials used in manufacturing and production,

And the other scenario is that companies produce finished products and there is no buyer for them.

So companies need to put in a huge effort to properly manage their supply chains, along with the need for sales forecasts and operations to make sure demand is known.

Especially since the supply chain crisis threatens with more massive changes that will clearly negatively affect companies and production processes.

Discover new opportunities in the next-generation digital supply chain

The supply chain didn’t recover from COVID-19

Since the early 1990s, global supply chains have been maximizing efficiency, and companies have sought to enhance their degree of specialization and focus on particular tasks in places that offer economies of scale.

But now there are growing concerns about the various repercussions on supply chains, as supply chains have not yet recovered from the Corona crisis,

Especially since there are a large number of sectors around the world that have been significantly affected by the pandemic.

Global supply chain crisis

The COVID-19 pandemic has caused a major shock to supply chains around the world, with markets at one point facing a huge and sudden surge in demand that was immediately followed by a severe drop in demand.

This is in addition to disruption in production cycles in most companies due to the continuous closures that occurred due to the Covid-19 pandemic.

Therefore, the supply chain crisis is a global crisis that will make companies need to know the change in market demand for their products and how they will manage their cash flows appropriately during that crisis so as not to collapse and lose their own market.

Why the supply chain is in crisis

The reason why the supply chain is in a major crisis is the Corona crisis and the repercussions it has imposed on the economies of the world clearly.

Currently, it has made the economy suffer from a large gap, so the store shelves have become empty,

And this happened due to the shortage of raw materials in companies, and the frequent closings of factories.

This is in addition to the lack of sufficient drivers and consequent disruption of cargo operations,

In addition to the high demand for sea and air freight, and the insufficient infrastructure.

Generally speaking, supply chains depend on people and equipment, and if there are any disruptions to them, the supply chain will face a huge problem in return.

This was clearly evident in the United States of America, which has clearly become out of products.

Getting serious about solving the supply chain crisis

A large number of countries around the world are trying to think of a way to help them seriously solve the supply chain crisis,

Especially as it has greatly affected, as we mentioned, the economies of a large number of countries.

Although the supply chain crisis is complex but solvable, all countries need to be serious about delivering the right mix of targeted policies along with capital investment in their infrastructure.

There are many terms that you may encounter while doing e-commerce, which you will need to have a good understanding of in order to be able to deal with them easily, and one of those terms is Backorders, especially since it is one of the most common terms that appear in e-commerce business, and in this article Together, we will learn in detail about what is meant by backorder, how to deal with it, as well as what are the most important factors that lead to the occurrence of backorders and how to get rid of them.

What is backorders meaning?

Backorders mean an order for a good or service that cannot currently be filled due to lack of stock levels, and this is very common in e-commerce.

Backorders can also occur on physical products, where backorder occur on products that you don’t keep in your warehouse, but are still available from suppliers.

What Causes Backorders?

As for the reasons that may result in backorders, they are numerous, and they can occur despite the presence of a good organization of your supply chain management.

The following are the most common reasons that may result in the occurrence of backorder:

1. Unexpected orders

Unexpected orders can lead to backorder, as sometimes your demand exceeds your usual customer demand levels.

And when your orders rise, you may not have enough stock to meet that increased demand from customers, so customers have to wait for their products.

2. Low levels of buffer stock

The second cause of backorders is low levels of stockpiling, as this stock helps you store items that may be in high demand at random.

Thus getting the best delivery time from your supply chain at some point and in the absence of buffer stock this increases the possibility of exposure to backorder

3. Supplier problems

One of the most common causes of backorders is problems with the suppliers themselves, which make it difficult to ensure timely supply of inventory.

Thus you will need to think carefully about how you will support your customers if your inventory does not rise to fit orders due to issues with your suppliers.

How Backorders Affect Supply Chains?

Backorders have a significant impact on supply chains. In general, backorder increase costs for supply chains.

As it places additional burdens on suppliers, when fulfilling this type of demand, suppliers will need to purchase additional inventory.

This is in the case that there is not enough stock to meet those demands, and thus the burden will be transferred to the supply chains.

How long do backorders take?

As for the time it takes for Backorder, it varies according to other factors, such as the availability of those orders with your supplier, or the amount of time it takes to ship those orders to your warehouse.

And other factors, so we can’t say exactly how long Backorder will take, but of course you’ll need to communicate clearly with customers and indicate how long they expect to receive their products.

Don’t lose your customers due to backorders

Backorders can cause you to lose a large number of customers, so you need to manage your backorder so that you do not lose customers because of it.

One of the best ways is to thank customers for their patience, for example, by guaranteeing them a free item in their order.

Say goodbye to backorders and get up Track Stock and Manage Backorders with LOGSTIAT

LOGSTIAT can provide you with distinguished services that help you in facing backorder, through Delivery Management Software, the most important of which are four steps to complete the order process, in a time not exceeding 180 seconds for each order.

As well as creating promotions for your customers, printing bills of lading for each order, in addition to managing operations and orders, as well as INVENTORY MANAGEMENT SYSTEM in the best possible way.f

Shipping is the actual transportation of the commodity from one point to another, and shipping charges are one of the most important things that customers care about, which may lead them to leave the entire shopping cart if it is high and exaggerated, so you need to put appropriate shipping charges, as if you are a company and import products You also need ways to reduce shipping charges, and in this article we will show you everything you need to know about shipping charges.

What are Shipping Charges? 

Shipping charges are those direct costs associated with moving products or merchandise from one place to another,

And retailers strive to provide products to customers on time and with the lowest possible shipping charges so that the consumer does not abandon the shopping cart.

Shipping charges include many costs, such as packaging costs, shipping costs, import or export fees for international shipping.

How to Determine Shipping Cost?

As for how you can calculate shipping charges, there is more than one method, and there is no one method that fits all.

And the following are the most important ways in which you can determine shipping charges or shipping cost:

1. Calculated Shipping

It is one of the easiest ways to determine the shipping charges or shipping cost, and to determine it you will need to first measure the weight and dimensions of the package,

Then calculate the shipping charges or shipping cost according to these measurements and the customer’s own location.

2. Flat-rate Shipping

In this method, you calculate shipping charges or shipping cost by setting a fixed price for shipping, regardless of the shape and weight of the package itself,

And through this method customers can purchase any product and pay only one shipping fee that you specify in advance.

This is the best way to determine shipping charges or shipping cost for small businesses, but it’s not appropriate for large businesses.

3. Free Shipping

It is one of the ways that retailers use in their online stores, where they provide free shipping services in order to increase their sales.

Customers always tend to buy products with free shipping, and in fact, merchants indirectly add shipping costs to the price of the product itself and in return make shipping free.

Shipping & Processing Charges

Some companies charge fixed shipping & processing charges, others set it according to where the goods will be shipped to and also the size and value of the goods transported.

And if you are going to deal with 3PL external sources to ship your products, those centers will set you shipping & processing charges.

And of course they will reduce those charges to you as much as possible, this is in addition to providing the best services for processing and managing orders and warehouses.

And all of this will eventually pay off and enhance customer satisfaction and thus increase sales and revenues.

What Information Do You Need to Calculate Shipping Costs?

In order to correctly calculate and determine the shipping cost, you need a number of information.

And the following are the most important information you need in order to be able to calculate the shipping charges or shipping cost:

1. Shipping Point of Origin and Destination

Information about Shipping Point of Origin and Destination will help you determine your shipping costs, because the greater the distance a package carries, the higher the shipping costs.

2. The Weight of the Package

Package weight can also affect shipping cost, as the smaller and lighter the package, the lower the shipping charges.

And always check that when you calculate shipping costs according to the weight of the package that you are using the total weight of the package and not the weight of the product itself.

As if you use additional items in the packaging, the weight of the product will increase and therefore the shipping charges or shipping cost will increase.

3. Package Dimensions

The volumetric weight can also affect the calculation of shipping charges or shipping cost, and it can be calculated by the following formula:

• Dimensional weight = length x width x height

Sometimes the shipping charges or shipping cost is cheaper by using the volumetric weight of some packages.

4. Delivery Times for Shipping

The delivery times of the goods themselves affect the shipping cost, the faster the goods are delivered, the higher the shipping charges. and you can control the delivery time through Delivery Management Software.

And customers are often willing to pay whatever shipping costs are in order to get the products they want sooner.

How can small businesses reduce shipping costs with a 3PL?

Small businesses can reduce their shipping costs through 3PL, i.e. outsourcing that can help you keep your shipping costs to a minimum.

LOGSTIAT is one of the best logistics companies, which also offers a full suite of courier delivery management features suitable for every type of business.

This makes it one of the best shipping and delivery order management software, through which you can simply monitor the operations of employees and delivery agents with the latest modern technology.

A large number of countries impose goods and service tax (GST), which is one of the forms of tax that is imposed on goods and services, as well as a form of sales tax, and it represents one of the forms of indirect taxes, which some countries have begun to apply to e-commerce as well, and in This article will provide you with all the details about the goods and service tax (GST) as well as some examples for illustration.

What are goods and service tax (GST)?

The GST is a form of sales tax that is levied on goods and services. It is paid by the consumer when he purchases the item but is ultimately collected by the seller and sent back to the country.

Also, the goods and service tax (GST) is a form of indirect tax, and each country determines its rate according to its policies and what it deems appropriate for itself and its citizens.

As for the method of calculating the GST, it differs from one country to another.

In general, the calculation of the GST takes the following formula:

• GST Amount = (Original Price x GST Rate) ÷ 100

GST for eCommerce Businesses

Recently, the GST has been imposed on e-commerce, and this type of tax is being collected on e-commerce.

Some countries have made it a mandatory law for e-commerce merchants, that those merchants will get the price of an item sold online after a 1% discount as a GST.

The collection of GST on e-commerce will have a significant impact on it.

Especially since it has become mandatory in many countries, merchants who sell goods and services via e-commerce must register for the GST regardless of the value of their supply.

Learn how Increase ecommerce sales?

GST and VAT difference

Many confuse both GST and VAT, but in fact, there is a difference between them, although they carry a common number of characteristics.

The difference between them can be based on the rules that each country sets on the same taxes, such as the tax rate or the articles that will be exempted from taxes.

But in general, both GST and VAT are indirect consumer taxes, i.e. they are levied on the purchase cost of goods sold and services and compulsorily collected by the state under its legal authority.

Shipping and claiming GST

The goods and service tax is levied on the cumulative value of the supply, and if shipping charges are included then the shipping charges must be taxed at the same tax rate as the supply of the goods or consignment.

The type of goods and service tax charged for shipping the goods also depends on whether the shipment is domestic or international.

Goods and services tax examples

There are many examples of GST, and here are a number of goods and service tax (GST) examples imposed by some countries such as India:

• Service tax.
• Entry Tax.
• Purchase Tax.
• Luxury Tax.
• State VAT.
• Central Sales.
• Entertainment Tax.
• Taxes on advertisements.
• State cesses and surcharges.

The management of warehouse staff is one of the most important challenges faced by warehouse managers in any facility, especially since warehouse staff are one of the main factors that contribute to the success or failure of your business. And thus exposure to huge problems, such as inventory damage or waste, or loss of customer confidence and thus loss of your reputation in the market, and in this article we will show you how to manage warehouse staff effectively, and how WMS can help you in warehouse staff.

Warehouse staff …Who is?

Before talking about ways to manage warehouse staff, we will first need to know who exactly they is.

Warehouse staff is the personnel responsible for carrying out the logistics of receiving, handling, storing and dispatching inventory in accordance with warehouse purchase orders and shipping schedules.

Management of warehouse staff

Warehouse staff is one of the factors of success or failure of your warehouse, therefore you need to manage it effectively to keep your warehouse organized and successful.

If your warehouse staff is inefficient, then the market will negatively affect all your operations, and therefore you will bear a lot of losses.

But if your warehouse staff is effective and organized, it will help you in growing and expanding further in the labor market, and thus reaping more profits and revenues, so there is great importance for managing warehouse staff.

What is the solution to effective management of warehouse staff?

As we mentioned in the previous paragraphs, it is very important to manage warehouse staff effectively, because this will have its impact on your business.

But the question is “what are the best solutions that help in achieving the best warehouse staff?”

Here are a number of solutions that will help you efficiently in achieving the best management of them easily and effectively:

1. Increasing the presence of the warehouse manager in the workplace and following up on work by himself

A lot of warehouse managers are content with paperwork and work from their own office and do not go to the workplace and check the situation themselves, which is a big mistake.

There is an important saying that says “the more time the warehouse manager spends on the ground, the more productive and efficient the warehouse becomes”.

As their physical presence in warehouses will enable them to monitor and address problems in real time, thus avoiding many problems such as:

• Loss of customer satisfaction.
• Incorrect requests.
• Late delivery.

And other problems that negatively affect your net revenue and thus clearly lose your reputation in the market.

2. Employing the appropriate number of warehouse staff

Many ask what is better, hiring a large number of warehouse staff or a very small number?

In fact, the answer depends on the nature of your business and how much warehouse staff you actually need.

It is always preferable to have a warehouse staff appropriate to the size of your work and your productivity so that there is no interruption of work or negative effects on the productivity of your employees, as well as to avoid the occurrence of thefts.

3. Effectively manage tasks and track work execution

Assigning and managing tasks on a regular basis will help you reduce downtime for your warehouse workforce, which overall positively impacts productivity in your warehouse.

So the warehouse manager must be able to schedule, allocate and monitor the tasks at hand, thus avoiding the chances of losing customer satisfaction due to issues arising from disorganization and control.

4. Effectively manage inventory

Effective inventory management system helps in increasing the employee’s ability to complete the task, as it directly affects the warehouse staff and their ability to complete their tasks.

This confirms the need for warehouse managers to be present in the warehouse on an ongoing basis to solve any problems facing warehouse staff and fix them in order to continue work and not disrupt their tasks.

5. Activate strict control over the warehouse

Failure to activate strict control over the warehouse will lead to an increased risk of theft and loss of resources, and warehouse control also helps in identifying the extent of your employees’ satisfaction, and whether they are exploiting the stock in an opportunistic manner or not.

How a warehouse management system can help you to manage your warehouse staff

Warehouse management systems play a large and effective role in enhancing the efficiency and effectiveness of business in warehouses.

You can take advantage of the warehouse management system to manage your warehouse staff in a more efficient and orderly manner.

These systems help you access warehouse data, orders, released product, and inventory details from the warehouse floor, providing data on performance and delivery.

Warehouse management systems also provide the warehouse manager with the ability to easily and quickly follow up on the warehouse himself, through:

• WMS provides systematic records of employee interactions.
• The ability to manage, reorder and distribute tasks to warehouse employees.
• Ease of immediate monitoring and planning of work.
• The ability to monitor and track customer requests.

LOGSTIAT offers you one of the best effective warehouse management systems, which can provide you with many important functions and help you manage warehouse staff and inventory itself more effectively.

The following are the most important features that warehouse management systems can offer you through LOGSTIAT:

• Update the orders on the shelf by one click.

• Sounding system to let you know the status of the order.
• Artificial Intelligence Technology.
• Saving inventory report per staff.
• Scheduling WMS, getting scheduling orders for the current day.
• Dispatch all orders which are scheduled for the current date.
• Get an alarm for on hold orders to be returned to the shipper.
• Inbound Scan WMS, that allows segregating your orders based on the city.
• Get scheduled orders on spot, that helps you reduce labor costs 60%.
• Sounding system to let you know the destination of the order.

Warehouses need a group of specialists and skilled who will have the ability to deal with warehouses and facilitate jobs and tasks in it, and one of the most important parts of warehouses is the warehouse operator, which performs many important functions that help in facilitating the work of the warehouse and organizing requests and thus satisfying customers and satisfying various requests without problems, The warehouse operator undertakes many tasks, including preparing outbound inventory for delivery service, reviewing incoming deliveries of inventory, operating forklifts and other tasks. Here are all the details about the warehouse operator’s job and the most important tasks and duties he performs, as well as the skills required to become one of them.

What Is a Warehouse Operator?

He is that person responsible for many of the day-to-day operations of warehouse facilities, and the warehouse operator processes orders and checks stock of available products.

The warehouse operator also arranges shipments for customers, and one of the most important tasks that undertakes is checking damages and manually inventorying warehouse stocks, and he also plays a role in maintaining the equipment used in the warehouse.

Warehouse Operator Duties and Responsibilities

Also, is responsible for performing many important functions, and is also entrusted with great responsibilities.

And the following are the most important duties and responsibilities of a warehouse operator:

• Organizing inventory, shipping and receiving operations.
• Assist in carrying out all tasks of unloading and loading items efficiently.
• Keep track of all incoming and outgoing Perfect Order.
• Processing the new stock and verifying that the contents of the incoming stock match the manifest documents.
• Unload and distribute the contained items in their appropriate places.
• Inventory of goods received correctly.
• Fulfilling and tracking outbound requests.
• Label the stock available in the warehouse.
• Reporting malfunctions in warehouses or any equipment problems and sending them to the higher management.
• Comply with health and safety rules and regulations.
• Handling machines and tools safely and efficiently in accordance with the organization’s protocols.

Warehouse Operator Skills and Qualifications

The warehouse operator job requires a number of basic skills and qualifications that must be met by a successful.

The following are the most important qualifications and skills required for this job:

• Possess a high school diploma or its equivalent.
• Having experience in dealing with warehouses.
• Possess experience with computers and modern software.
• Ability to verbally communicate and work with a team.
• The worker should be trustworthy and able to take responsibility.
• Owning a forklift certification.
• Having a great knowledge of warehouse tools and equipment.

Tools of the trade for a warehouse operative

Warehouse operators need a number of tools to help them perform their job better, and this can be done through the use of technological tools and modern techniques.

Automation plays a large part of logistics management, and one of the most important special tools for a warehouse worker is inventory management systems.

• iPad
• headset
• Barcoder
• SQL
• Database management.
• Digital design.

Warehouse Operator How to Become One

There are a number of skills that the warehouse operator must possess in order to be able to properly perform the functions and tasks required of him.

you must have these skills and you must also hold a valid license along with a forklift license.

must also complete additional high-risk work permits, which will cover various hazardous work tasks, such as working at heights.

The logistics sector is one of the industries in which the digital revolution is intense, as digitalization in logistics is happening faster than expected, and many companies are seeking to introduce digitalization in logistics, which will help in business success more effectively and enhance competitiveness and stay in the market. In this article, we will discuss the impact of digitalization in logistics and how digitalization enhances supply chains and the provision of logistics services, and we will also learn about what digitalization in logistics is.

What is digitalization in logistics?

Thanks to the rapid and massive technological development that has been increased by the Covid-19 pandemic during the past year, logistics services are closer than ever to benefiting from the benefits of digital transformation

Digitalization in logistics is the process in which new technologies are applied in logistics operations in order to improve the company’s efficiency.

Thus, the integration of digital capabilities in the areas of storage and preparation of orders, as well as transportation and other logistics services.

Technology enabling digitalization in the warehouse

Technology has effectively enabled digitization in warehouses, which has helped improve warehouse operations and workflows.

One form of technology that effectively contributes to enabling digitization in warehouses is the Internet of Things, automation systems and robotics.

Companies can shift towards digital warehouses simply by outsourcing 3PL which provides the best digital logistics services and most importantly digital warehousing.

4 Steps to Digitizing Your Logistics Execution

Logistics service providers are adopting digitalization in the provision of their services, due to the effect of technology in global supply chains.

And there are a number of steps that will help you in implementing digitization in logistics.

The following are the most important steps that your company needs to be able to carry out digitalization in logistics:

1. Understand and accurately identify the challenges facing your company’s operations

Identifying and understanding the challenges in your operations will help you easily enter digitalization in logistics, which will contribute to reducing waste and increasing efficiency.

This is in addition to increasing the speed of work and reducing costs, as recent experiences have proven that companies that integrate digitization in their operations contribute to improving their service levels and reducing their costs.

2. Determine precisely where you want to go with digital transformation

That is, think about your future and what you want to achieve with digitalization in logistics, which will help you determine your ideal future situation.

This enables you to view the latest ideas about digital transformation, as well as learn the most important principles you need in applying digitalization in logistics.

3. Create a list of features you need as part of your digital transformation of operations

After you get to know the problems you encounter while performing digitalization in logistics, you will then need to look for appropriate solutions to those problems.

You can do this by reviewing your strategy as well as the type of technology you need to implement digitalization in logistics.

And do not forget to keep in mind the advantages that the use of modern technologies in your work can bring to you,

Which will provide you with a lot of predictive analytics that will enhance your business in the future.

4. Choose Logistics Execution Technology Vendors who can meet your need

You will need to look for the best Logistics Execution Technology Vendors who can provide you with complete Logistics Execution solutions, and partner with them.

So that their technology integrates with other hardware and software in the least time as well as an appropriate cost for your business and its size, which reflects positively on your business.

Digital transformation in transportation and logistics

Companies are using digital transformation in transportation and other logistics services, due to its great benefits and its positive impact on various operations.

The digital transformation of transportation and other logistics services has helped companies improve their operations and increase their productivity significantly.

This is in addition to its great role in meeting customer expectations and better decision-making, by relying on modern applications and technology that facilitated a lot of business.

How Digitization is Transforming Logistics Services

Digitization is working remarkably and effectively in transforming logistics services and making them more efficient, as digitization, with its modern technologies, contributes to reducing costs and increasing product availability.

It also enhances logistics services, which leads to an increase in available markets and trade opportunities.

Whereas, the introduction of digitalization in logistics makes supply chain management completely different,

As advanced robotics and artificial intelligence (AI) have greatly advanced the provision of logistics services.

As a result, supply chains have become more sophisticated, fluid and profitable, and digitization has also helped to automate monotonous warehousing and manufacturing tasks.

Therefore, the impact of digitalization in logistics is significant and contributes to enhancing the flexibility of supply chains as well as allowing quick access to data and information.

Good inventory management is the most important point for running a successful business, but several statistics indicate that many retailers struggle to achieve this. Especially since there are many aspects or criteria that need to be measured and monitored over time, and in this article we will go into all the details about inventory KPIs and how you can choose the best inventory KPIs.

What are inventory KPIs?

Inventory KPIs are a number of tools that help business owners and even merchants gauge how well their company or store is achieving desired goals.

Inventory KPIs also help assess how well a traitor is doing and how you can improve him after studying his performance well.

Collecting inventory KPIs: first step towards an efficient warehouse

In order to create an efficient warehouse you will need to bring inventory KPIs together. Nowadays, companies use data to measure sales performance and the pros and cons of customer service.

Inventory KPIs help you measure productivity, accuracy, error rates, and costs, so warehouse managers need to use this type of data for analysis.

In order to have a more efficient and effective repository and verify your storage operations, you need to monitor performance closely by monitoring Inventory KPIs.

Failure to monitor Inventory KPIs will also make it difficult for you to improve your warehouse, and will hinder you in making appropriate improvements to it, as you will not be able to identify deficiencies.

Inventory Management Best Practices

Inventory management best practices are those that measure items correctly. Objectives must be clear and realistic, not just impossible fantasies.

Once you have identified the KPIs for your inventory, you will then need to hire the right employees to succeed, while ensuring that they understand the goal correctly.

The following are a number of effective practices in inventory management:

• Train the staff to use the metrics you will be working with.
• Create targeting criteria with a timeline.
• Develop a dashboard to show the progress of the metrics.
• Clearly define the metrics you work with.

5 KPIs to Measure Inventory Performance

Inventory is critical to the success of retail, distribution or manufacturing, and mismanagement of inventory is just as dangerous as mismanagement of financial statements and even leads to losses.

Conversely, a well-managed inventory keeps customers happy, boosts sales, and thus increases revenue.

Here are the 5 most important inventory KPIs for measuring inventory performance:

1. Inventory Turnover

One of the most important inventory KPIs is inventory turnover, defined as the number of times inventory has been sold and replenished during a specified period of time.

The high rate of inventory turnover is an indicator of good efficiency and good management, while its low rate indicates the slow movement of sales.

So you need to conduct a comprehensive evaluation of your business to find out the weaknesses and correct them. The inventory turnover ratio is calculated as follows:

• Cost of Goods Sold/Average Inventory

2. Rate of Return

The rate of return is that percentage that shows the profit from an investment for a period, and that percentage is a percentage of the original investment, and it can be calculated by the following formula:

• rate of return = [(final value – initial value) ÷ initial value]*100

3. Perfect Order Rate

As for the Perfect Order Rate, which is one of the most important inventory KPIs that are used to check the inventory tool, it means the number of orders that the company ships without any problems.

It indicates successful orders that the company has fulfilled without a return or delay in delivery.

All companies aspire to reach their ideal rate of demand to 100%, which is evidence of the extent of customer satisfaction with the service provided and that the company is working effectively in meeting customer requests.

You can use the following formula to calculate the ideal demand rate:

• Ideal order rate = [(orders delivered on time/orders)*(orders complete/orders)*(orders damage free/orders)*(orders with accurate documentation/orders)]*100

4. Service Level

One of the important inventory KPIs is the service level, which is the metric that addresses the percentage of customers who are not out of stock.

The Service Level indicator is used to balance sheet inventory costs and inventory costs resulting from having inventory that is too large and insufficient to meet orders.

The importance of this indicator is in helping the company to calculate the supply chain challenges it faces and customer demands as well.

And you can use the following formula to calculate it

• Service level = (orders delivered/orders received)*100.

5. Inventory Accuracy

Another important indicator within the inventory KPIs in our article today is the Inventory Accuracy,

which shows the difference between the number of items in the company’s records and what is on the shelf for sale.

And it can be calculated by using the following formula:

• inventory accuracy = (counted items that match record/counted items)*100

Sales in e-commerce depend on two main factors, price and delivery time, the first factor depends on the suppliers you deal with, and the second depends on your management of the inventory itself, so there is great importance to managing ecommerce inventory, and e-commerce companies rely heavily on effectively managing ecommerce inventory So you can know when to order more inventory, how much to order, where to store it, etc. In this article LOGSTIAT will give you all the details on how to effectively manage ecommerce inventory, ways to enhance that management and what are the best ecommerce inventory management software.

What is ecommerce inventory management?

ecommerce Inventory management refers to the processes of storing, tracking and shipping products, and it is one of the essential aspects of managing online stores, whether large or small.

Inventory management helps e-store owners know how much inventory is available, when they have to renew it, estimate the cost of storage, and more.

As for the concept of ecommerce inventory management, it means the organized approach through which the sources of e-commerce inventory are determined in terms of storage, tracking, and shipping.

A successful ecommerce inventory management is one of the sources of strength and efficiency for e-commerce companies, through which they will be able to increase efficiency and reduce operational costs.

How to grow your ecommerce store?

Preparing ecommerce inventory

The most important step before starting ecommerce inventory management is to prepare your inventory for the unexpected.

So that your inventory is prepared for any future conditions related to future demands and customers and their aspirations, here are a number of important information on how to better predict future orders:

1. Inventory financing

Inventory is one of the most valuable assets that a company owns, and it needs to have sales before it can be invested in.

Inventory financing helps you achieve the continued growth of your business.

Therefore, you need to provide a suitable source of financing along with a suitable plan in the event of a gap in your cash flow.

2. Inventory forecasting

Inventory forecasting will help you easily meet future requirements, and you can forecast using your historical sales data as well as other trends.

Also, one of the most important advantages of inventory forecasting is the possibility of reducing the required inventory in addition to increasing sales while reducing employment.

Thus achieving more efficient and effective production cycles.

How Inventory Management Enhances Your Ecommerce Strategy

Strategic inventory management can greatly enhance e-commerce, as it effectively helps in:

• Fixing errors associated with inventory management and thus avoiding a lot of huge costs and losses.
• Giving your business a significant competitive advantage.
• Knowledge of purchasing behavior and a new understanding of where your products are in their lifecycle.
• Strengthen the relationship with your customers and suppliers.
• Handling e-commerce inventory efficiently.

All of these things will work effectively in enhancing e-commerce operations, thus increasing revenues, growing companies, and maintaining or gaining their reputation in the market.

Why do eCommerce stores need this level of inventory control?

Online stores spend more on shipping than the value of the products themselves, and this is a big problem for online stores all over the world.

So the costs of inventory management issues globally are well over a trillion, and this is a very huge cost, so there is a lot of importance to inventory management and control.

All e-commerce businesses need this level of inventory control system to verify that the e-commerce business has the correct inventory levels.

Correct stock levels are meant to be those levels needed to fulfill all customer orders on time.

Therefore, inventory control is a vital process that helps in improving inventory clearly, as it works to keep the most important units of products without spending a lot of money.

Features for in good ecommerce inventory management software

These are the core features that business owners and finance directors will want. If you’re considering an inventory solution that lacks one or more of these features, then look elsewhere.

Although it is difficult to have e-commerce inventory management software that includes all the features at the same time and the features differ according to the nature of the establishment that works in e-commerce,

However, there are a number of basic features that a good e-commerce inventory management software should have, and the following are the most important ones:

1. Real-time inventory tracking

Which shows you what you have in stock at the moment. It is one of the most important features of good e-commerce inventory management software that you will rely on.

2. Real-time inventory value

which will help you determine the current value of your inventory, as it provides a live display of the value of your inventory and can track variable costs efficiently.

3. Reorder points and low stock alerts

Which will provide you with automatic alerts when critical stock is low, as well as the ability to quickly create a purchase order to process the order in real time.

4. Purchase and supplier management

Which works to control inventory and purchases as well, by storing all your suppliers’ details centrally, as well as the ability to create and fill your purchase orders automatically.

5. Unlimited SKUs

Which is one of the most important features of e-commerce inventory management software, as it helps you add an endless number of products, giving you a better chance for your business to grow.

6. Proper inventory reporting

The reporting feature should be available automatically on a monthly basis without the need to generate it manually,

Which will make your operations more efficient by providing periodic reports that tell you more about your inventory, such as:

• Turnover and average days of sale per SKU.
• Inventory lifetime.

7. Barcode scanning and serial number tracking

Which will help make the data entry process easier, and thus systems update with the click of a button. Effectively scanning the barcode and tracking the serial number helps in moving faster as well as visibly reduce errors.

Also, scanning the barcode and tracking the serial number works efficiently in tracking products and thus knowing their path until they reach their final destination, as it provides all historical data on the products.

8. Adaptability

One of the most important features of ecommerce inventory management software is the ability to adapt, so that it better suits your business needs and is constantly renewed.

Is inventory management software right for eCommerce SMEs?

Some believe that inventory management software is not important for small and medium-sized e-commerce businesses.

In fact, this is a misconception, as the inventory management software is suitable for small and medium-sized e-commerce businesses.

But if small and medium-sized e-commerce establishments are able to organize the order without software and are also unable to afford the e-commerce inventory management software, then there is no problem.

This is because most SMEs are unable to afford to invest in programs of this quality.

But what is inescapable is the importance of inventory management software for large e-commerce establishments, but at the same time small and medium-sized e-commerce businesses can benefit from it.

It helps them in providing better inventory control as well as fulfilling customer orders faster and more efficiently, and it will also make them save a lot of unnecessary expenses.