Women Powering Ecommerce

051 - Navigating Inventory Challenges with Expert Strategies

Written by Suzie Cyrenne | Dec 26, 2023 1:30:00 PM

Welcome to another episode of Women Powering Ecommerce! I'm thrilled to take you behind the scenes of my journey as a female e-commerce entrepreneur. Today, let's dive into the nitty-gritty of inventory forecasting, a topic that has been a recent challenge in my entrepreneurial journey.

The Highs and Lows of 2023

Reflecting on the past year, I've experienced the highs of successful email marketing, contributing to an impressive 60% of our revenue during peak times like Black Friday. However, the flip side of the coin reveals the challenges we faced in inventory management, an aspect crucial to any e-commerce business.

Changing Tides in Lead Times

In 2022, our lead times shifted from two weeks to two months, a change implemented to prevent backorders. Little did we anticipate the consequences that would unfold in the subsequent year. The delayed impact became evident as we found ourselves with excess stock, leading to an unexpected problem: impending expiration dates.

The Unforeseen Challenge

Overstocking became a new challenge for us, especially when faced with products nearing their expiration dates. What followed was a realization that we hadn't been diligent in regularly checking expiration dates, assuming our inventory management software could handle it all. This oversight resulted in a significant financial setback.

Turning Challenges into Opportunities

Rather than dwelling on the setback, I viewed it as an opportunity to implement better systems. It prompted a thorough analysis of the root causes, identifying issues like high minimum order quantities and varying product shelf lives.

Key Takeaways and Lesson Learned

  1. Understanding Market Demand: Predicting customer needs more accurately is a skill I'm actively working on to avoid overstocking.
  2. Negotiation Skills: Balancing order quantities through negotiation is crucial. Finding the sweet spot between minimum order quantities and realistic sales expectations is an ongoing challenge.
  3. Shelf Life Considerations: Paying closer attention to expiration dates and product turnovers is essential. Relying solely on software proved insufficient.
  4. Risk Management: Developing a proactive plan for excess stock helps prevent last-minute flash sales and financial losses.
  5. Supplier Negotiation: Negotiating better minimum order quantities and terms with suppliers is key. Learning to say no and ask for favorable terms is an ongoing process.

Conclusion

In sharing these behind-the-scenes challenges, I aim to inspire fellow e-commerce entrepreneurs to embrace every obstacle as a learning opportunity. Continuous learning and adaptation are integral to success in this dynamic field. Remember to subscribe, like, and share if you found value in today's episode. Let's support each other on this incredible journey of growth and empowerment in the world of e-commerce. Until next time!