Facing inventory and order management problems? You are not alone. Increasingly demanding customers want quick and precise order fulfillment. If you fall short, they will switch over to your rivals and even give you negative reviews. But fast and precise order shipments are easier said than done. Problems like stockouts, inaccurate data, and manual processes can get in the way. Hence, finding proven solutions for these issues is paramount for operational excellence. Our easy guide shows smart solutions for your biggest inventory and order management problems.
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Inventory and Order Management Challenges and their Solutions
If not addressed correctly, inventory and order management challenges can sharply raise inventory costs, fulfillment errors, and customer complaints.
That’s why you should find out about the biggest inventory and order management challenges, their root causes, and practical solutions.
Here is a comprehensive explanation – in simple words.
Excessive Manual Work
What It Is: Workers manually enter data to complete key processes.
Why It Matters: Consumes valuable time, slows down operations, and causes costly errors.
Why It Happens: Absence of automation leads to manual workflows, human errors, and delays. Powerful inventory software provides elegant solutions for these problems.
Manual Inventory Process
Root Cause: Workers manually update inventory data. Subsequent human errors and delays negatively impact fulfillment performance. Customer satisfaction goes down.
Solution: Barcode scanning and POS terminal support automatically update inventory. A quick barcode scan completes any process without manual data entry.
Manual Backend Processes
Root Cause: Manual data entry is required to update inventory in the ERP, CRM, or accounts software.
Solution: Seamless integrations automatically update inventory data across software systems, eliminating manual data entry.
Our system integrations automatically update inventory for your business tools.
Check IntegrationsManual Invoicing Errors
Root Cause: Manual invoicing increases errors – customer experience declines.
Solution: Invoicing automation generates error-free invoices for customers.
Our B2B payment tool has all you need for streamlined payments
Check B2B Payments ToolInaccurate Inventory Figures
What It Is: When your physical stock and inventory records don’t match.
Why It Matters: Such discrepancies increase overselling, stockouts, and lost sales.
Why It Happens: Poor inventory monitoring, visibility, and traceability lead to inaccurate stock figures. Enterprise-grade software is engineered from the ground up to prevent such issues.
No Real-Time Tracking
Root Cause: Spreadsheets and manual systems can’t track inventory updates automatically. Errors pile up over time.
Solution: Real-time inventory tracking via specialized software boosts stock accuracy.
Low Multi-Location Visibility
Root Cause: Inventory spread across multiple locations is hard to follow.
Solution: Software designed for multi-location management gives you full visibility across all inventory locations.
Low Traceability
Root Cause: Without serial numbers, tracking individual inventory items is hard.
Solution: Serialization boosts tracking and traceability by assigning unique codes to each SKU. Prevents item mixups and mismatches. Inventory accuracy rises.
Complex Multichannel Inventory
What It Is: Inventory problems that arise when sales channels are disconnected.
Why It Matters: Selling across disconnected channels increases inventory discrepancies. This leads to overselling, order cancellations, and stockouts.
Why It Happens: The absence of centralized inventory management creates multichannel inventory problems. Software technology provides the necessary solutions.
Multichannel Inventory Discrepancies
Root Cause: Disconnected sales channels need manual updates. Subsequent human errors lead to inventory discrepancies, overselling, and stockouts.
Solution: With a centralized system, sales channel transactions automatically update inventory. Manual updates are eliminated, and inventory accuracy improves.
No Integrations
Root Cause: Without integrations, you can’t directly use your WMS to streamline inventory on your ecommerce platforms and online marketplaces.
Solution: Integrations allow direct use of a WMS – its powerful features optimize inventory management across ecommerce platforms and online marketplaces.
Overstocking
What It Is: Having more inventory than you need to fulfill demand.
Why It Matters: Excess stock consumes valuable funds, restricting cash flow. Also, costs rise, and managing inventory becomes harder.
Why It Happens: Inaccurate forecasts, supply chain issues, and data fragmentation lead to excess inventory. However, they can be resolved with powerful software solutions.
Inaccurate Forecasts
Root Cause: Human errors and oversight negatively impact forecasting precision, leading to high stock levels.
Solution: AI algorithms spot trends in complex data sets that humans might miss. Hence, accurate AI-powered forecasts reduce overstocking.
Data Fragmentation
Root Cause: Gathering necessary datasets is crucial for forecasting. However, doing so is difficult without a centralized system.
Solution: Centralized software provides comprehensive reports and analytics for accurate forecasts. Overstocking declines.
High Buffer Stock
Root Cause: Supply chain problems and frequent shipping delays may necessitate a high buffer stock. Overstocking results.
Solution: Real-time supplier tracking and coordination reduce shipping delays. This can safely reduce buffer stock. This means less overstocking.
Stockouts
What It Is: Running out of inventory items.
Why It Matters: Frequent stockouts increase lost sales and order cancellations. This reduces customer satisfaction and loyalty.
Why It Happens: Manual stock ordering, monitoring problems, and disconnected sales channels increase stockouts. Inventory software functions can handle these problems.
Human Errors
Root Cause: Manual procurement increases stockouts due to human oversight. The risk grows with complex inventory.
Solution: With automatic stock replenishment, critically low inventory triggers automated purchase orders, preventing stockouts. Reduces manual effort and errors.
Low Visibility
Root Cause: Without real-time tracking, following each SKU is difficult. Stockout frequency rises.
Solution: Real-time tracking informs you about each SKU level. Low stock levels trigger alerts and notifications, enabling timely action. Stockout frequency falls.
Inventory Discrepancies
Root Cause: Disconnected sales channels require manual inventory updates for each transaction. Human errors increase inventory discrepancies.
Solution: An omnichannel system automatically updates inventory for transactions on any sales channel. Automation reduces inventory errors.
Inefficient Returns Fulfillment
What It Is: Slow or inaccurate fulfillment of customer returns.
Why It Matters: Slow/inaccurate returns weaken customer loyalty and brand reputation.
Why It Happens: Lack of automation, barcode support, and validation rules are at the core of inefficient returns fulfillment. Specialized systems can answer these problems.
Manual Inefficiency
Root Cause: A manual returns management process will be slow and error-prone.
Solution: Inventory software expedites returns management with robust management features.
Data Entry
Root Cause: Without RFID/barcode scanning support, manual data entry is needed to process returns, increasing errors and delays.
Solution: RFID/barcode scanning support automates data entry, boosting efficiency.
Frequent Errors
Root Cause: The absence of validation rules lets errors slip through.
Solution: An inventory system with validation rules stops transactions if order processing details conflict with customer orders.
Complex Manufacturing and Assembly
What It Is: Manufacturing and assembly become harder if more SKUs are involved.
Why It Matters: Complex inventory requires highly organized management to prevent frequent problems during manufacturing and assembly.
Why It Happens: SKU proliferation is a major cause of manufacturing errors and delays. Kitting, serialization, and BOM software are proven solutions.
Slow Picking
Root Cause: Picking many items for each assembly is slow and error-prone.
Solution: Kitting puts all required parts, components, and sub-assemblies in one package for easy, fast assembly. Specialized software simplifies kitting.
Assembly Errors
Root Cause: Missed parts and human oversight lead to manufacturing errors.
Solution: Bill of Materials (BOM) software lists all parts that go into each manufactured product, minimizing errors. Logical, structured parts lists simplify assembly.
Slow Fulfillment
What It Is: A low rate of order fulfillment.
Why It Matters: Slow order fulfillment stretches delivery times, eroding customer satisfaction.
Why It Happens: Inefficient item picking, suboptimally organized inventory, and stock-taking disruptions slow down fulfillment. Inventor software features mitigate these issues.
Item Picking Errors
Root Cause: Picking the wrong items, especially those that are similar.
Solution: Serialization allocates unique codes to each item, minimizing item mixups and wrong item picks. Works best with RFID/barcode support.
Long Picking Times
Root Cause: Suboptimal organization of inventory.
Solution: ABC classification identifies and places fast-moving goods closer to workers and slow-moving goods further away. Shortens travel distances. Reduces picking times.
Inefficient Stock Taking
Root Cause: Although vital for inventory accuracy, stock taking creates disruptions since all inventory processes must stop for it to proceed.
Solution: Smart cycle counts target only critical SKUs, instead of counting everything. Software identifies critical SKUs that strongly impact inventory accuracy.
Low Labor Productivity
Root Cause: Long idle times and unoptimized schedules hit labor productivity.
Solution: Intelligent wave, zone, and batch picking schedules boost labor productivity. Prioritizing by item cost, location, or other factors optimize order picking.
Wastage
What It Is: Inventory items going to waste due to spoilage or low demand.
Why It Matters: Wastage raises costs. Spoiled goods need disposal and should be written off. Low-demand goods incur warehouse costs and could be eventually wasted.
Why It Happens: Here are the root causes and solutions of inventory wastage.
Spoilage
Root Cause: Expiration of perishable goods due to inadequate management.
Solution: Built-in FEFO (First Expired, First Out) management tracks expiry dates of all items to minimize spoilage.
Excess Inventory
Root Cause: Inaccurate forecasts for seasonal and fluctuating demand.
Solution: Reports and analytics reveal dead stock and low-demand items. Smart AI forecasts reduce dead stock by accurately predicting seasonal demand.
Item Traceability
What It Is: Product recalls and warranties require high traceability for individual items.
Why It Matters: Product recalls ensure compliance and warranties drive customer satisfaction.
Why It Happens: Without a comprehensive inventory solution, maintaining complete information on individual item movement is virtually impossible.
Incomplete Item Tracking
Root Cause: Comprehensive item tracking is hard without serial number tracking.
Solution: Inventory software with serial number tracking provides complete information on the movement of individual items. Enables full traceability.
Low Operational Visibility
Root Cause: Spreadsheets and legacy systems can’t show real-time item movement.
Solution: Upgrade to a modern solution with comprehensive real-time visibility to easily track individual items.
Help is at hand - our modern system solves your biggest problems with ease.
Get FREE Consultation!Inventory and Order Management Software
Struggling with inventory and order management problems? Inventory and order management software has everything you need in this regard.
Barcode Scanning Support
Barcode scanning support boosts productivity by reducing data entry. Workers complete inventory processes with quick scans. Also, human errors decline.
Smart Cycle Counts
Accurate inventory requires physical stock taking. But counting all items is time-consuming. Smart cycle counts save time by counting only high value or problematic SKUs.
Automatic Stock Replenishment
Critically low stock triggers automatic purchase orders, preventing stockouts.
Alerts and Notifications
Low stock levels trigger alerts and notifications. Stockouts and lost sales are minimized.
ABC Classification
Reduces worker travel distance by keeping fast moving goods closer to workers. Item picking accelerates.
Serialization
Prevents item mixups by giving unique codes to each item. Minimizes fulfillment errors and delays.
Reports and Analytics
Instant reports and deep analytics provide full visibility over inventory and fulfillment. You gain valuable insights for growth.
Forecasts
Cash flow improves and inventory costs go down when smart AI forecasts reduce inventory levels.
Safety Stock
Optimizes the safety stock level – you can manage demand spikes without limiting cash flow.
See for yourself how our system streamlines all your business processes.
Start FREE Trial!Integrations
Integrations automatically update your ERP, CRM, accounts software, and other applications with the latest inventory data. Eliminates manual data entry errors and delays.
3PL Monitoring
You can monitor supplier KPIs in real-time to accurately assess their performance. Streamlines communication and order placement with your 3PL partners.
KPI Tracking
Real-time KPIs for inventory and fulfillment reveal opportunities to boost productivity.
Returns Management
Automation speeds up returns processing. Validation rules prevent errors. Customer satisfaction stays high.
Customer Portal
Improves customer experience by simplifying returns, order placement, feedback and shipment tracking for customers.
Fleet Management
Improves transport fleet performance with optimized shipping routes for quick fulfillment.
Omnichannel Support
Prevents lost sales and canceled orders by keeping your inventory accurate – transactions on any sales channels automatically update inventory.
Multilocation Management
Full visibility across all fulfillment centers and warehouses simplifies management.
Automatic Billing and Invoicing
Automatically issues bills and invoices for all transactions, saving you time and effort. Human errors go down and team productivity rises.
Labor Scheduling and Tracking
Intelligent labor schedules for wave, batch, and zone picking accelerates fulfillment rate. Track performance KPIs for individual workers and teams.
Smart Fulfillment
Prioritizing order fulfillment by date, cost, customer or location improves overall customer satisfaction.
You are in luck - our advanced system effortlessly streamlines your workflow.
Let’s Talk!Key Features in The Leading Inventory and Order Management System
Besides features mentioned above, the trusted inventory and order management system WareGo provides the following:
- Mobile Friendly Interface
The interface works for all tablets and smartphones – perfect for busy workers on the go.
- Latest Cloud Technology
High uptime means you can access the system anytime from any location.
- High Security
Your valuable data is safe thanks to custom role based access, powerful encryption, firewalls, and other security technologies.
- Great Ease of Use
Even nonexperts become productive right away thanks to the simple user interface.
- Superb Technical Support
Our friendly experts are available 24/7, eager to resolve any problem immediately.
Bottom Line
Inventory and order management challenges of all kinds can be addressed with the right system, designed from the ground up to resolve them.
WareGo has everything you need to take your inventory and order strategy to the next level. Start a free trial and watch demos to see how our system boosts productivity and streamlines all processes.
See how our system skyrockets productivity with cutting-edge features.
Watch FREE DemoFAQs
What is inventory and order management?
Inventory and order management streamlines all processes that involve inventory and order fulfillment. This is necessary for preventing operational problems. Proper management allows precise and timely order fulfillment for increased customer satisfaction.
What are the 5 stages of the inventory management process?
Here are the 5 stages of the inventory management process.
- Forecasting: Accurate forecasts ensure lean inventory – preventing stockouts and overstocking.
- Receiving: Following order placement, warehouse staff receive inventory shipments and ensure that received items match the purchase orders.
- Storage: Inventory is optimally organized for quick retrieval, reducing picking times.
- Processing: Workers use barcode scanning to quickly pick and pack the right items.
- Shipment: Items are shipped to waiting customers.
What are the 4 components of inventory management?
The 4 components of inventory management are as follows.
- Forecasts and Analytics: Keeps the right SKUs in the right amount to avoid stockouts and overstocking.
- Inventory Control: Real-time inventory tracking helps spot and resolve operational inefficiencies.
- Inventory Purchases: Reliable inventory replenishment prevents stockouts.
- Warehouse Management: ABC classification, serialization, and slotting organize inventory for fast retrieval and efficient operations.
What are the key features of good inventory and order management software?
Here are the key features of good inventory and order management software.
- RFID/Barcode & POS Terminal Support: Expedite inventory operations and sales transactions, reducing errors.
- Smart Cycle Counts: Instead of counting all items, only critical stock items are counted. This improves inventory accuracy without consuming too much time.
- Omnichannel Support: A centralized inventory system automatically updates inventory on all sales channels – without manual data entry, human errors, and delays.
- Integrations: Automatically update inventory for business tools like the ERP, CRM, and accounts software – without manual data entry.
- AI Forecasting: Smart algorithms can spot trends in data that humans might miss. They also speed up forecasting and demand planning.
- Reports and Analytics: Supply insights that boost efficiency, sales, and growth.
- Multilocation Management: Allows inventory monitoring across all storage sites.
- Serialization: Provides full information on individual inventory movement.
- Automatic Stock Replenishment: Purchases inventory automatically when stocks fall low. Prevents stockouts and minimizes human effort.
- Inventory Organization: ABC classification, serialization, and slotting organize inventory for quick retrieval. Speeds up operations.
