You can already understand that stores need well-designed logistics to handle the stock product (สต๊อกสินค้า which is the term in Thai), right? It sounds like an exaggeration, but logistical errors are one of the main reasons for the delay in sending the order. To prevent this from happening, keep in mind that inventory management must be carried out with excellence.
In the world of e-commerce, there are many ways to structure your inventory organization. The adoption of a particular model will depend on the characteristics of the business. Learn here about the different ways to manage your online store inventory.
Unique Physical Inventory
In this case, the space where you have your products is supplied according to the sales demand of your store. That is, it does not depend on third parties to function. One of the positive points of the method is the possibility of selling the product for prompt delivery. The downside is that there is not enough demand; there is a surplus of products.
Decentralized Physical Inventory
This form is for seasonal deliveries or deliveries to different parts of the country. The method works with stock branches such as warehouses. However, it requires a greater expense, as it needs extra space for storage. Thus, it is especially ideal for large companies or companies that serve multiple geographic regions.
Shared Physical Inventory
In this case, the stock of the physical store and virtual stores’ stock is in the same environment. For the method to work properly, the ideal is to synchronize physical and virtual purchase orders without the risk of selling an item to two different people.
This modality works through an agreement between the merchant and the supplier. If the retailer does not sell all the items, he may return the surplus and pay only for what was sold. In this way, the store does not assume the risk of excess stock. The downside is that the supplier often charges more to join the modality.
Here, the supplier defines the merchant’s amount for his store. The feature is mainly used in multi-brand online stores. The positive side is the ease of managing inventory, while the negative side is limiting products for sale.
Outsourcing has two different ways of being conducted. The first is Drop Shipping, also known as triangulation. An integrated system is created with the distributor, which is responsible for delivering the product to the final customer.
The other modality is Cross Docking. The difference is that in this case, the distribution company delivers the product to the retailer, who is responsible for delivering it to the final customer. Both modalities have the advantage of reducing storage space and automating the system. However, they leave everything centralized with the supplier. Bear in mind that you should always have a receipt form (แบบฟอร์มใบเสร็จรับเงิน which is the term in Thai) for your online sales