5 Simple But Effective Ways to Avoid Going Out-of-Stock

Nothing is more frustrating for a shopper than discovering the product they want is unavailable. It can even make them abandon the purchase altogether—or worse, turn to a competitor. That’s why preventing an out-of-stock (OOS) scenario is crucial for online stores. 

But don’t worry! There are simple and effective ways to prevent this. In this article, we’ll cover tried-and-tested OOS prevention strategies that are easy to implement and help you keep your shelves stocked and your customers happy.

Let’s start with…

Tip #1: Use an Inventory Management Software

Traditional inventory management can be quite labor-intensive. While it may work for a small business with limited stock, using inventory software can simplify the process as your brand grows.

What better way to manage your inventory than by automating it with a single software solution? Some examples include:

• QuickBooks Commerce
• Zoho Inventory
• Katana
• Square
• Spocket

Thanks to technology, you can track your inventory in real-time without the hassle of doing it manually!

Real-time tracking allows you to restock when needed, helping you avoid stockouts and even preventing overstocking on slow-moving items. Plus, it gives you valuable insights into demand trends based on historical sales data. 

Many inventory management systems also include built-in audit features, making it easier to spot discrepancies and ensure accuracy. Automating these tasks reduces errors and helps you avoid potential disruptions that could negatively impact your operations.

Some software programs even enable you to pick how much inventory you have listed on each site you’re selling from. For example, if you’re selling your products through your website, you can choose how much inventory is available on each site. 

If you’re selling rings and have 100 of a particular SKU in total, you can choose to have 50 available through your site, 35 through Amazon, and 15 through WooCommerce. 

Tip #2: Analyze Sales Data for Accurate Projections

There’s no telling what the future holds—or so they say. But sales data can provide a pretty clear forecast. 

By analyzing your historical sales data, you can identify patterns that reveal much about your customer behavior and demand. This is where inventory forecasting comes into play.

Inventory forecasting predicts future needs based on historical sales data, market trends, and other relevant factors. It helps businesses meet customer demand to avoid overstocking or stockouts. Here are a few methods you can try:

• Trend Forecasting: Project possible trends by analyzing the changes in the demand for your product over time.
• Graphical Forecasting: Track historical data to identify possible insights that may have been missed without visuals.
• Qualitative Forecasting: Predict future inventory needs using insights gathered from focus groups, customer interviews, and market research. 
• Quantitative Forecasting: Unlike Qualitative Forecasting, this approach relies heavily on numerical data, such as historical sales data, trends, and others.

Today, many eCommerce platforms have forecasting capabilities to enhance inventory management processes. Businesses can now track seasonal spikes and effortlessly identify consistently popular items. It can help you anticipate which products will sell out faster and which may move more slowly.

With this information, you can make smarter decisions about restocking. You can also stay prepared for high demand without overstocking slower-moving items—a powerful way to keep inventory in check!

Tip #3: Establish Fulfillment Backups

Surges in demand can happen at any time. One moment, a product can be just another item on the shelf; the next, it’s flying off! You don’t want to be caught unprepared when that happens. 

That’s why establishing fulfillment backups is necessary. With this as part of your inventory strategy, you can fortify your business against disruptions. Plus, you can remain resilient, no matter how unpredictable the market becomes. But how do you start? 

Here’s how:

• Use multiple fulfillment centers: This strategy can reduce shipping times and costs. It ensures you can fulfill orders regardless of where the demand comes from, and the geographical diversity enhances your ability to serve customers promptly.

• Partner with third-party logistics (3PL) providers: Collaborating with trustworthy 3PL providers allows you to hand off inventory management, warehousing, and shipping processes to experts. This partnership enables you to scale your operations efficiently while focusing on what truly matters—growing your business.

• Incorporate dropshipping: You can avoid holding excess stock by partnering with suppliers who can handle fulfillment on your behalf. This method allows you to fulfill orders without the burden of inventory management, giving you the flexibility to respond quickly to changes in demand.

Tip #4: Work With Multiple Logistics Providers

Now that we’ve explored the concept of third-party logistics (3PL) providers, let’s broaden our understanding of logistics as a whole.

In eCommerce, logistics covers various activities, including transportation, warehousing, distribution, and overall supply chain management. While fulfillment often gets confused with logistics, it focuses explicitly on order processing and delivery.

So, why should you work with multiple logistics providers? Here’s how doing so can help you avoid stockouts:

• Reduced dependency: Partnering with multiple providers creates a safety net for your business. This way, if one provider encounters disruptions, you still have options to ensure continuity in your operations.

• Optimized shipping options: With multiple providers, you can choose the best shipping method based on cost, speed, and reliability. This flexibility lets you tailor your approach to meet the specific needs of each situation.

• Wider geographic reach: A diverse logistics network enables you to operate efficiently across different regions, helping you serve your customers more effectively, no matter where they are.

• Better rates: Having various logistics partners can lead to more competitive pricing. This allows you to manage your shipping costs more effectively as your needs fluctuate.

• Enhanced competitiveness: A diversified logistics strategy keeps you agile and competitive in today’s fast-paced environment by allowing you to adapt quickly to market changes.

In short, working with multiple logistics providers helps you achieve resilience—an essential quality in navigating the ever-changing landscape of eCommerce today.

Tip #5: Build a Strong Supplier Relationship

Last but certainly not least, you should build a strong relationship with your supplier to prevent stockouts. Remember, this isn’t just a transactional connection; it’s a partnership where both sides must understand each other’s needs and challenges. 

To keep your supply chain running smoothly and avoid running out of stock, consider the following:

• Discuss lead times: It’s crucial to know how long it typically takes for your supplier to produce and ship your products. This information should be clear from the start, as it allows you to plan your inventory more effectively and reduces the risk of stockouts.

• Clarify minimum order quantities: Many suppliers have minimum order quantities (MOQs), and discussing these upfront is important. Understanding these requirements will help you plan your orders and avoid overstocking, which can strain your budget.

• Share important insights: Keep your suppliers in the loop about your inventory’s demand. When they know what your customers are looking for, they can better align their production to meet your needs. It’s a win-win!

• Be open and transparent: If you encounter any challenges affecting your supply chain, don’t hesitate to involve your supplier. Encourage them to do the same. Building this kind of open dialogue fosters teamwork, and having a supportive supplier relationship is invaluable when it comes to avoiding stockouts.

When you nurture a strong, communicative partnership with your suppliers, you’ll significantly improve your inventory management and keep stockouts at bay. It’s all about working together to create a seamless experience for everyone involved!

How iDrive Can Help Prevent Stockouts with Better Inventory Management

To wrap up, you can keep your eCommerce business resilient by:

• Building strong supplier relationships
• Collaborating with multiple logistics providers
• Establishing fulfillment backups
• Leveraging data-driven insights
• Using inventory management software 

Implement these five tips, and you’re on your way to business success. However, if you feel overwhelmed by this process, we’re here to assist you!

At iDrive Logistics, we offer advanced inventory management capabilities and diversified logistics solutions to meet your specific needs. Our expert team is ready to help you implement these strategies, ensuring improved inventory management and effective stockout prevention.

‍Connect with us to explore the solutions that will help you gain better control of your inventory, enhance your shipping and fulfillment processes, and keep your customers satisfied!