How to better manage Stock for your Shopify Store (Concise Webinar)

Introduction

Hello and good morning, everyone. Welcome to this concise webinar on how to better manage stock for your Shopify store, with a particular focus on Shopify stores. This webinar is about e-commerce, stock, and stock management. Managing stock effectively is crucial for running a successful online business.

I'd like to introduce my fellow presenters: Brad Saw, our guest presenter, and Gareth Lane. Brad is a supply chain specialist based in Brisbane with extensive experience in logistics learned in the military and diverse business environments.

Introduction

This webinar aims to be 100% educational. It's not about sales pitches but about providing helpful, actionable information. It will be recorded and available on our website and YouTube channel.

Understanding Supply Chain Logistics

Supply chain logistics encompass the entire process from sourcing to delivering products to customers, involving procurement, receiving, put away, picking, packing, and shipping. The goal is to achieve the "five rights": the right product, quality, quantity, time, and place. All parts of the supply chain are interconnected, and even one broken link can disrupt your business.

Ground Zero: Product Master Data and Catalog

At the core of supply chain management is product master data and cataloging. It's crucial to connect the two to support your sales process effectively. Product master data involves the collection, organization, and maintenance of various data pieces. Cataloging supports the sales process and should be consistent throughout the business.

Key Components of Product Data Management

SKU Code

The most crucial piece of supply chain data is the Stock Keeping Unit (SKU) code. It should be a unique identifier for every product in your system. Customizing SKU codes can improve efficiency and clarity.

Product Type

Properly categorizing your product types (stock, service, non-inventory items) can save significant time and reduce reconciliation problems in your accounting system.

Unit of Measurement

Ensure there's no confusion between the unit of measurement from your supplier and what you store, pack, and ship. Misalignment can lead to significant order and shipping issues.

Dimensions and Weights

Accurate dimensions and weights, including packaging, are essential for avoiding billing discrepancies with shipping providers.

Best Before/Use By Date

If your products are date-sensitive, implement a proper system to track and manage these dates effectively to avoid losses.

Dangerous Goods

For businesses dealing with dangerous goods, ensure your system can manage compliance, including class and Material Safety Data Sheets (MSDS).

Pricing

Maintaining accurate and updated pricing, including supplier costs and landed costs, is critical for determining real margins and setting correct retail prices.

Cost Centers and Accounting Rules

Set up inventory accounts, revenue accounts, purchase tax rules, and sales tax rules correctly to simplify financial management and compliance.

Supplier Data Management

Correctly setting up supplier data, including their SKUs, product names, lead times, and minimum order quantities, streamlines procurement and avoids unnecessary delays.

Inventory Settings: Policies and Management

Set clear inventory policies, including reorder points and maximum stock levels based on factors like supplier lead time variability and business growth.

Warehousing and Distribution

Efficient warehousing, including zones for heavy and light items, and fast versus slow movers, can significantly enhance order accuracy and reduce damage during shipping.

Summary

In essence, keep your data requirements simple but ensure they cover all necessary aspects of your supply chain. Always plan for future growth and ensure regular review and maintenance of your systems.

Keywords

Supply Chain
Logistics
Product Master Data
SKU Code
Shopify
Inventory Management
Supplier Data
Pricing
Warehousing

FAQ

Q1: Why is SKU code important? A1: The SKU code is a unique identifier for every product in your system, crucial for efficient inventory management and accurate order processing.

Q2: What should be considered in product master data? A2: Product master data should include SKU codes, product types, unit of measurement, dimensions, weights, best before/use by dates, and any dangerous goods classifications.

Q3: How do I manage date-sensitive products? A3: Implement a system to track and manage best before or use by dates effectively, ensuring you sell products before they expire.

Q4: What are the benefits of proper warehousing layout? A4: Proper layout improves picking efficiency, reduces product damage, and can integrate inventory management with shipping logistics.

Q5: How can supplier data management improve my business operations? A5: Accurate supplier data management ensures timely and accurate orders, reduces delays, and helps maintain a reliable supply chain.