Category: Inventory Management

Light Manufacturing Made Easy: Maximizing Efficiency with SKULabs

Posted on by Brad Baecker

In the world of eCommerce, flexibility and efficiency in managing inventory and production processes are crucial. For businesses engaged in light manufacturing, finding an efficient solution that integrates just-in-time kitting and phase based inventory manufacturing can be a game changer. SKULabs offers an innovative approach to light manufacturing through its robust kitting functionality and support for virtual/disconnected warehouses. This guide explores how you can leverage these features to optimize your manufacturing process.

Workers assembling products to be sold on eCommerce

The Power of Kitting in SKULabs

Kitting involves combining multiple items or components into a single product for sale. It’s a common practice in industries like electronics, auto parts, T-shirt manufacturing and appliances, where bundled products are not only popular, but necessary to represent a finished good. SKULabs’ kitting function allows you to create kits that represent all the individual component items that make up a single product, enabling you to manage inventory more efficiently while maintaining accurate stock counts both at the kit level as well as the component items.

Creating Kits in SKULabs

With SKULabs, you can easily create kits by defining a kit as a collection of specific inventory items. This approach allows you to:

  • Simplify Inventory Management: By creating kits, you can track bundled products as a single unit, reducing complexity in inventory tracking. Each kit will have its own SKU and barcode for representation. Inventory levels will be based on the amount of component items on hand that make up a single kit.
  • Ensure Accurate Stock Levels: SKULabs automatically adjusts stock levels for individual components when a kit is sold, ensuring accurate inventory counts and eliminating the logistics of keeping up with the component items. Kits are calculated automatically in the background and advertised as a whole on your sales channel.
  • Facilitate Order Fulfillment: Kits can be seamlessly integrated into your order processing workflow, streamlining fulfillment and reducing errors. This allows you to fulfill a group of items with a single scan of a barcode.

To create a kit, you simply name the Kit, assign a SKU and fill it with component items. SKULabs takes care of the rest, ensuring that each kit is accurately represented in your inventory system.

Virtual/Disconnected Warehouses: A New Approach to Manufacturing

One of the unique features of SKULabs is its support for virtual/disconnected warehouses. This feature allows you to represent different stages of the manufacturing process as separate warehouses, providing greater flexibility and control. Here’s how it works:

Virtual Warehouses?

A virtual warehouse can be used as a digital representation of the different stages of production in an inventory management system. These stages may include intake and housing of raw materials, assembly of products, items sent for quality control, and ultimately advertised inventory to your sales channels. The primary advantage of using virtual warehouses is the ability to track inventory levels and the flow of goods across different stages without the need for spreadsheets or other costly softwares. With the proper setup, virtual warehouses can streamline operations, improve visibility, and boost overall efficiency.

Virtual warehouses in stages 1-3 to represent manufacturing process

Setting Up Disconnected Warehouses

In SKULabs, disconnected warehouses are separate inventory locations not directly tied to a specific eCommerce sales channel. This feature is ideal for representing manufacturing stages, enabling you to track the progress of your products as they move through the production process and know what is on hand. By setting up disconnected warehouses, you can:

  • Define Manufacturing Stages: Create different warehouses to represent stages like “Intake”, “Assembly,” “Quality Control,” or “Packaging.”
  • Track Inventory Movement: Easily move inventory between warehouses to reflect the manufacturing process. This is a simple internal warehouse transfer which gives you granular control on how much stock is moved, and which phase of the process it should represent next.
  • Ensure Product Readiness: Once a product is complete, you can transfer it to your connected warehouse, making it available for sale on your e-commerce platforms.

Integrating Disconnected Warehouses with Kits

The combination of kitting and disconnected warehouses allows you to represent the entire manufacturing process within SKULabs. Here’s a simplified workflow:

  1. Define Kits: Create kits in SKULabs that represent the finished product, specifying all the components needed for assembly.
  2. Set Up Disconnected Warehouses: Create warehouses for each stage of the manufacturing process.
  3. Move Inventory Through Stages: As components are progressing into assembled kits, transfer them from one disconnected warehouse to the next to reflect the manufacturing progress or stages.
  4. Complete the Product: Once the kit is fully assembled and ready for sale, transfer the components to your connected warehouse, making it available for order fulfillment.
  5. Fulfill Orders: With the product in your connected warehouse, you can seamlessly fulfill customer orders and manage inventory levels across your eCommerce sales channels. This method also lets you sell and keep track of your component items individually!

Running Low on component items?

Now that we have simplified the logistics for maintaining accurate inventory levels for your products that are made up of various component items, how do you keep an eye out for that one component item that will keep you from completing these assembled goods? Take advantage of SKULabs’ built in inventory alert system. Right on your SKULabs dashboard, you will maintain visibility of all of the items that have hit or fallen below your assigned threshold of on-hand counts. Not always in front of your app or device? No problem, we can automate these stock alerts to be sent to your desired email address to keep you in-the-know while on-the-go!

Keep it Simple

SKULabs offers a comprehensive solution for light manufacturing by combining kitting functionality with the flexibility of virtual/disconnected warehouses. By utilizing these features, you can efficiently manage the production process, track inventory accurately, and ensure a smooth transition from manufacturing to order fulfillment. Whether you’re a small business or a larger eCommerce operation, SKULabs provides the tools to streamline your light manufacturing process and keep your customers satisfied!

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for taking your business to the next level!

Chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Posted in Ecommerce, Inventory Management, Small Business, Warehouse ManagementTagged

Improving E-Commerce with SKULabs: Merging FBM and FBA SKUs for better inventory management

Posted on by Alex E

In the fast-paced world of e-commerce, managing inventory with precision is crucial for sellers to stay competitive and meet customer demands efficiently. This is particularly true for businesses using Seller Fulfilled Prime as well as Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) models to optimize their delivery times and control costs. Traditionally, managing these separate inventory streams has been a complex and time-consuming process. However, SKULabs provides simple but effective features to help sellers: the automatic merging of FBM and FBA SKUs. This functionality helps you easily monitor and manage inventory for the same physical products in one place, even for products sold as both an FBA or FBM listing. Having the tools to keep this process easier allows sellers to focus on other important objectives like operational efficiency and customer satisfaction.

The Challenge of Managing Separate Inventories

The complexity of managing two separate inventories for FBA and FBM is not only time-consuming but also prone to many challenges and inefficiencies; inaccurate stock level reporting per channel, increased operational costs in both fulfillment or stocking decisions, and missed sales opportunities due to stockouts in one channel while surplus exists in another. These challenges can ultimately cause a poor experience for your customers and highlights the need for a more efficient approach to avoiding or overcoming them.

The SKULabs Solution: Simplified inventory with merged FBM and FBA listings

SKULabs helps sellers easily manage products by intelligently and automatically linking FBM and FBA listings for the same products together under the same inventory item. And while FBM and FBA listings are merged, SKULabs still maintains separate stock levels for both FBM and FBA, so we’ll never mistakenly push the stock you keep in your own warehouse to the stock in your FBA warehouse.

This brings several benefits:

Efficient inventory management

By consolidating FBM and FBA SKUs into a single inventory view, sellers can now manage their products more efficiently, ensuring accurate stock levels across all sales channels and fulfillment methods. Being able to accurately monitor stock levels on both methods in a single place easily allows businesses to optimize their fulfillment strategies, FBA inbound processes, and overall operational efficiency.

Better operational efficiency

Automatic merging of SKUs directly impacts operational efficiency. With a unified inventory, businesses can better allocate resources, optimize fulfillment processes, and make informed decisions about restocking and product distribution. This level of efficiency is critical for maintaining customer satisfaction and competitive edge. Moreover, it allows for more strategic planning and resource allocation, focusing efforts where they are most needed.

Data driven insights for growth

The consolidation of inventory data provides valuable insights that can drive strategic business decisions. Sellers can analyze trends across both FBM and FBA channels, identifying best-selling products, seasonal fluctuations, and potential areas for expansion or marketing. This data-driven approach allows for more accurate forecasting and strategic inventory distribution, ensuring that products are positioned to meet demand effectively.

Improved Sales and Customer Satisfaction

One of the most significant benefits of merging FBA and FBM SKUs is the impact on sales and customer satisfaction. With a more accurate view of inventory, sellers can ensure that their products are always available to customers, regardless of the fulfillment method. This reliability can lead to increased sales, as customers are more likely to purchase from a seller who consistently has products in stock. Additionally, the seamless integration of FBM and FBA inventories means faster fulfillment times, contributing to higher customer satisfaction and repeat business. This consistency is key to creating a cohesive brand experience for customers, regardless of where they make their purchases.

Simplifying Complexities for Multichannel Sellers

For sellers operating across multiple platforms, managing separate inventories on each channel and fulfillment method can become exponentially more complicated. The automatic merging of FBM and FBA SKUs is particularly beneficial in these cases because it eliminates the confusion with multiple item inventories and the need to chase down stock levels in separate places. Reducing the complexity on these fronts can immediately lead to better operational alignment and a more cohesive sales strategy across all platforms. 

The Takeaway

Automatically merging of FBM and FBA SKUs in SKULabs is more than just a feature, it’s an effective strategy for optimizing not only how you think about products but also how you manage FBM and FBA inventory overall. As e-commerce continues to evolve, managing operations efficiently becomes increasingly important for maintaining a competitive edge. Having a unified view of accurate inventory in SKULabs across FBM and FBA is just one of the many solutions SKULabs offers to e-commerce sellers.

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you get prepared for taking your business to the next level!

Chat with one of our experts today. Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Posted in Ecommerce, Inventory Management, Multichannel

One SKU to Rule Them All: How SKULabs Streamlines Amazon Inventory by Merging FBA and FBM SKUs

Posted on by Brad Baecker

In the world of eCommerce, managing inventory can often be as challenging as it is critical. Retailers who sell across multiple platforms, including Amazon, are familiar with the complexities of tracking stock levels for items that are both Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Enter SKULabs, an inventory and order management system that brings a solution to the table: the automatic merging of FBA and FBM SKUs into a unified, organized catalog.

The Challenge of Managing Multiple Fulfillment Methods

Before delving into SKULabs’ solution, it’s important to understand the problem it addresses. Amazon sellers typically have SKUs that are fulfilled in two ways:

  1. FBA (Fulfillment by Amazon): Amazon takes responsibility for storing, picking, packing, and shipping the product. They also handle returns and customer service for these items.
  2. FBM (Fulfillment by Merchant): The seller is in charge of storing their own inventory and taking care of all the logistics related to shipping, returns, and customer service.

Managing two sets of SKUs for the same item can be a logistical nightmare. It can lead to inaccuracies in inventory tracking, inconsistencies in stock levels, and confusion during order fulfillment – all of which can ultimately harm customer satisfaction and the bottom line.

SKULabs’ Epic Solution

SKULabs tackles this issue head-on with its innovative approach to SKU management. Here’s how the magic works:

Automatic Merging of SKUs

Based on ASIN, SKULabs’ system is designed to automatically identify and merge FBA and FBM SKUs for the same product into a single SKU in the SKULabs catalog. This means that even though you may have different fulfillment methods, your inventory is tracked as a single unit. This automation simplifies inventory management dramatically.

One Unified Catalog

By merging FBA and FBM SKUs, SKULabs creates a unified catalog. This has several benefits:

  • Simplified Inventory Management: With a single point of reference for each product, it’s easier to monitor stock levels and predict inventory needs.
  • Efficient Order Processing: When an order comes in, SKULabs knows exactly which fulfillment method to use based on the most efficient option or the one you prefer.
  • Centralized Data Analysis: With merged SKUs, sellers can analyze product performance across all fulfillment methods without having to segment the data manually. This significantly simplifies the reordering process.

Real-Time Synchronization

SKULabs not only merges the SKUs but also ensures that inventory levels are synchronized in real-time. This means that sales from either FBA or FBM will immediately reflect across the system, ensuring that inventory levels are always up to date. With SKULabs, you can sync your stock levels from FBA into a connected virtual warehouse to always retain visibility on stock levels

Streamlined Restocking

When it’s time to restock, SKULabs provides a comprehensive picture of inventory across both fulfillment methods, making it easier to decide how much to reorder and how to allocate between FBA and FBM.

Consistent Customer Experience

By effectively managing inventory, SKULabs helps sellers maintain a consistent customer experience, regardless of the fulfillment method. Customers receive their orders on time, and the risk of overselling or running out of stock is minimized.

Even the Smallest Feature Can Change the Course of the Future.

The integration of FBA and FBM SKU merging by SKULabs represents a significant leap forward for Amazon sellers seeking operational efficiency. By automating what was once a tedious and error-prone process, SKULabs has empowered retailers to focus more on growth and less on the nitty-gritty of inventory management.

For businesses looking to streamline their operations and harness the full potential of their Amazon sales channel, SKULabs offers an elegant solution that turns the complexity of managing multiple SKUs into a strategic advantage. As eCommerce continues to evolve, tools like SKULabs will be invaluable in helping sellers stay organized, focused, and ahead of the competition.

Connect with SKULabs Today

Now is the perfect time to discuss how we can help you automate your day to day processes and let you focus on the more important aspects of your business!

Chat with one of our experts today.Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Posted in Inventory Management

The Art of Inventory: How Cycle Counting Keeps You Balanced

Posted on by Brad Baecker

Inventory management is a cornerstone of successful businesses, particularly those in eCommerce, retail, manufacturing, and logistics. While traditional full inventory counts (typically done annually) play their role, the growing trend and best practice in the industry today is cycle counting.

Physical inventory counting is more than often viewed with dread and anxiety by both warehouse employees and managers. Typically conducted once at the close of the fiscal year, this mammoth task often transforms into a daunting night or weekend project. Beyond its overwhelming nature, this comprehensive inventory count can be riddled with potential errors. Consequently, this is why cycle counting is quickly becoming the new standard in inventory management.

Problems With Traditional Counting Methods:

“Inventory Day” is a hated phrase in the warehouse management industry. The event is often forced by accounting departments and performed after closing time or on a Saturday. A handful of workers are tasked with pulling every piece of inventory off the shelf, counting the stock level per SKU, replacing them, and finally reporting the results to the warehouse manager.

Since it’s a rare occurrence, the team members involved are often uncomfortable and unsure of exactly what to do. They make mistakes and everyone involved gets frustrated. This issue is exacerbated by the likelihood of this chore being done on everyone’s day off.

The implications of this process extend beyond just the workforce. An inventory count that demands hours of arduous effort, often results in questionable accuracy. An annual count captures errors that have piled up over months. Even more troubling, the extensive duration of the count leaves little room to delve into any inconsistencies. As a result, inventory adjustments frequently occur without a thorough understanding of the root causes.

While single physical inventory counts are the most common way to account for shrinkage and other discrepancies, there are other avenues worth exploring. If the count is taking too much time or isn’t giving you the results you want, you may want to consider a leaner method of maintaining an accurate inventory count.

What is Cycle Counting?

Cycle counting involves auditing a small subset of inventory items in the warehouse at specific intervals, maintaining accurate inventory levels. Rather than halting operations to count all items, companies adopt regular cycle counts. This approach promotes consistent accuracy while allowing day-to-day operations to proceed unhindered.

Why is Cycle Counting Inventory a Good Practice?

There are a number of benefits to switching to a cycle counting workflow. Counting more often reduces the chance of discrepancies, and gives you more time to investigate the ones that do come up. Being able to diagnose why your stock counts were off is huge, as identifying the problems (shrinkage, inadequate training, warehouse placement, etc.) may help prevent them from reoccurring.

Not only is cycle counting better for your inventory and accounting records, but it can be better for your team. By making inventory counting part of your regular warehouse operations, your team will become more skilled and comfortable with the task. After cycle counting has been integrated into their workflow, team members will be able to get the chore done faster and with less headache. Not only that, a more accurate inventory count increases confidence when selling to customers, publishing new listings, and reordering from suppliers.

Key Benefits of using the Cycle Count Method:

Increased Inventory Accuracy: Regularly verifying stock levels increases the accuracy of inventory records. This reduces the chances of stock-outs or overstock situations.

Operational Continuity: Since only a portion of the inventory is counted at a time, business operations can continue uninterrupted.

Cost-Effective: Reduces the cost and time associated with complete stock counts. Businesses don’t have to halt their operations, and they can better allocate manpower.

Identifies Issues Promptly: Regular cycle counting can swiftly identify and rectify sources of discrepancy like theft, damage, or misplacement, helping businesses address problems before they escalate.

Enhances Customer Satisfaction: Accurate inventory ensures that businesses can meet customer demand efficiently, thereby improving service levels and trust.

How to implement effective cycle counting:

Cycle counting is an inherently simple process that’s easy to pick up and integrate into your workflow. However, it’s not without its potential kinks, and there are opportunities to optimize your picking:

  1. Count early and often. A large benefit of cycle counting is that you are counting a small amount of inventory more frequently. Break up your inventory into groups by location, set a schedule to count one group per week (or every other week, or whatever suits your needs), and stick to that schedule.
  2. Count top-selling SKUs more often. The Pareto principle, more commonly known as the 80-20 rule, states that 80% of your sales usually come from 20% of your catalog. Use this to your advantage when cycle counting by grouping those 20% of your SKUs together and counting them more frequently. Your “money SKUs” are the ones whose inventory is changing the most often, and they’re the ones that need the most accurate stock counts.
  3. Show counters the current stock level. Sending your team members in blind isn’t as helpful as it sounds. When they’re counting stock, having an indicator of what you believe to be the current stock level helps as a reference in case they overlook a large portion of that inventory.
  4. Use barcode scanning to make counting easier. Visually counting and writing down inventory counts is slow and error-prone. A barcode scanner and an electronic counter is faster, more accurate, and easier for your team.
  5. Investigate and address discrepancies. Now that you’re finishing your counting tasks faster than ever, you have sufficient time left over to diagnose why stock counts are differing from what was previously recorded. Look into sales records, receiving history, and reorder reports to see what caused the recorded stock level to become inaccurate.

How SKULabs Makes Cycle Counting Easier:

User-friendly Interface:

SKULabs offers an intuitive interface, making it simple for users to initiate, track, and complete cycle counts.

Inventory Segmentation:

With SKULabs, businesses can segment their inventory based on various criteria, such as sales volume, product type, or location. This makes it easy to prioritize which items to count and when.

Real-time Syncing:

Any changes made during the cycle count are instantly reflected in the system, ensuring that sales, purchase orders, and other operations align with the most recent stock levels.

Barcode Scanning:

SKULabs supports barcode scanning, which accelerates the counting process and significantly reduces human errors. Scan the product, enter the count, and you’re done!

Discrepancy Identification:

Once the cycle count is entered, SKULabs compares it to the expected count. If discrepancies are noted, they’re highlighted for investigation, ensuring that issues are addressed promptly.

Exportable Reporting:

After each cycle count, a report can be generated that businesses can use for analysis. This aids in understanding stock movements, identifying trends, and making informed inventory-related decisions.

Seamless Integration:

SKULabs seamlessly integrates with popular eCommerce platforms and marketplaces. This ensures that inventory levels are consistently accurate across all sales channels.

Role-based Permissions:

Businesses can assign specific roles to team members, ensuring that only authorized personnel can make changes to inventory levels, enhancing security and accountability.

Cycle counting is undeniably the most robust method to maintain inventory accuracy, and platforms like SKULabs further simplify the process. With an array of features tailored to optimize cycle counting, SKULabs is an invaluable tool for businesses seeking to uphold the highest standards in inventory management. By leveraging such platforms, companies not only ensure accurate stock levels but also facilitate smoother operations, improved customer satisfaction, and overall business growth.

Now is the perfect time to discuss how we can help take control of your inventory with SKULabs’ dedicated Cycle Count Interface!

Chat with one of our experts today.Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Posted in Inventory Management

Simplifying T-Shirt eCommerce through Virtual Warehousing

Posted on by Brad Baecker

The T-shirt business, like any other eCommerce venture, needs an efficient system to track inventory, monitor production stages, and fulfill orders in an accurate yet timely manner. SKULabs, an all-in-one inventory management and order fulfillment solution, has emerged as an invaluable tool for companies that sell T-shirts via eCommerce by using virtual warehouses to represent different stages of production. No matter what method you use to manufacture, whether it’s plastisol, ink / laser jet, or dye sublimation, there’s no need for costly manufacturing software that can be an overkill both on the wallet and functionality. 

Virtual Warehouses?

A virtual warehouse can be used as a digital representation of the different stages of production in an inventory management system. These stages may include intake and housing of raw materials, printing and production of the shirt, items sent for quality control, and ultimately advertised inventory to your sales channels. The primary advantage of using virtual warehouses is the ability to track inventory levels and the flow of goods across different stages without the need for spreadsheets or other costly softwares. With the proper setup, virtual warehouses can streamline operations, improve visibility, and boost overall efficiency.

Organizing Raw Materials

The journey of a printed T-shirt begins with your raw materials. This can include items such as blank T-shirts, dyes and prints, or actual raw materials such at cotton and threads depending on the level of manufacturing you choose to undertake. By utilizing SKULabs’ virtual warehouse workflow, eCommerce businesses can have a clear and organized view of their raw material inventory. This helps companies to maintain visibility on their production items, know how much they have in stock, where each one of them is in the production line, and even get automated reports when raw materials are running low in stock. This helps you maintain optimal stock levels, reduce waste, and prevent mismatches in quantities needed to create final products.

Tracking the Printing Process

The printing phase is where creativity comes to life as designs, logos, and other graphics are transferred onto the fabric. This process can occur in various locales – within your city, across your state, or even within distinct sections of your warehouse. Regardless of the location, SKULabs empowers eCommerce businesses to monitor the progress of the printing stage with ease. With this tool, companies can keep tabs on the quantity of printed T-shirts, the availability of different colors and sizes, and even gain real-time insights into items at various stages of production. As a result, businesses gain a transparent view of their production timeline, enabling them to better prioritize orders and optimally allocate resources.

Monitoring Quality Control

After the printing stage, T-shirts undergo quality control to ensure that they meet the required standards. With SKULabs’ virtual warehouse feature, eCommerce businesses can track the number of items currently in the quality control stage and ensure that only high-quality products reach the customers. This not only helps in maintaining a positive brand image but also reduces returns and exchanges due to quality issues.

Managing Advertised Inventory

Once the T-shirts pass quality control, they are ready for sale. SKULabs, with an ever evolving product, allows eCommerce businesses to manage their finished products across multiple sales channels with granular control of advertised stock through highly customizable stock rules. By using virtual warehouses in combination with sales channel connected warehouses, businesses can have a unified view of their production cycle as well as their available and advertised stock to avoid overselling or underselling. This helps in meeting customer expectations, reducing cancellations or costly returns, and improving overall customer satisfaction.

Seamless Order Fulfillment

SKULabs delivers a seamless order fulfillment process that can transform the operational landscape for your T-shirt printing business. By navigating its user-friendly interface, companies can easily track the entire order journey from initiation to delivery, ensuring a smooth and efficient workflow. SKULabs’ powerful system automatically updates inventory counts, mitigating the risk of errors and inventory discrepancies. This leads not only to swifter order processing but also to reduced costs related to inventory management and handling. Embracing SKULabs’ highly customizable platform allows eCommerce businesses to heighten customer satisfaction, increase operational efficiency, and ultimately propel sales growth.

Connect with SKULabs Today

Don’t get monkeyed’ out of your hard earned cash by overpaying for processes that you do not need!

Chat with one of our experts today

Schedule a meeting or give us a call at 1800-243-2986 to learn more.

Posted in Ecommerce, Inventory Management, Small Business