Transform your sales website by integrating a dropshipping model to expand inventory and improve order fulfillment using advanced inventory management and synchronization strategies.
Introduction
A renowned inboard dealer established in 1989, boasts the largest inventory of specialty inboard parts in the world. They have recently decided to expand their business by incorporating a dropshipping model, aiming to streamline operations and enhance customer satisfaction. This article explores the strategies and solutions implemented to transform their sales website to support a dropshipping model.
The Vision Behind the Initiatives
The expansion involves increasing its inventory volume and integrating a dropshipping model to improve their market reach and operational efficiency. By connecting their online store to third-party warehouses, they aim to enhance product availability and customer satisfaction.
Our Solutions for the Company
Combining Inventory and drop-shipped Warehouses
Integrating their existing inventory with drop-shipped warehouses can significantly expand their product range and attract more customers. This approach ensures that the company can offer a wide variety of products without the need for significant upfront investment in inventory.
Set up Salable Quantity for the Online Store
In Magento, the “Salable Quantity” is crucial for effective inventory management, especially in a multi-source inventory (MSI) environment. Here’s how it works:
Key Components of Salable Quantity
- Inventory Management: The salable quantity represents the actual number of items available for sale, considering physical stock, reservations, and pending orders. This prevents overselling by providing real-time availability.
- Multi-Source Inventory (MSI): For stores using MSI, the salable quantity reflects the combined stock across all sources, minus any reservations. This allows efficient management of inventory across multiple locations.
- Order Management: During checkout, Magento checks the salable quantity to ensure that the requested items can be fulfilled. This dynamic update enhances the customer experience by reducing the risk of cancellations due to stockouts.
Formula: Salable Quantity = Total Stock Quantity – Reservations
Implementing this function helps close more orders and avoid losing sales due to “out of stock” or “backorder” statuses.
Inventory Selection Strategy Using Google API
Leveraging the Google API for inventory selection optimizes order fulfillment by choosing the best inventory source based on criteria such as proximity to the customer, inventory availability, and shipping costs.
Key Components
- Google Maps API: Utilizes the Distance Matrix API, Geocoding API, and Places API for calculating distances, converting addresses, and identifying nearby places.
- Inventory Management System (IMS): Tracks inventory levels across different locations and provides real-time stock availability.
- Order Management System (OMS): Integrates with IMS and uses Google API data to select the optimal inventory source for order fulfillment.
This strategy benefits the company by optimizing delivery times, reducing shipping costs, and enhancing customer satisfaction.
Inventory Synchronization
Maintaining accurate inventory levels across multiple warehouses is essential for providing precise stock information and efficient order fulfillment. Our Hexasync middleware platform facilitates seamless data synchronization between different systems.
Benefits of Hexasync Middleware
- Real-Time Visibility: Achieves real-time visibility of stock levels across all locations.
- Improved Order Fulfillment: Enhances efficiency by ensuring data consistency and accurate inventory management.
- Operational Efficiency: Reduces operational costs and improves customer satisfaction through superior inventory management.
Software Solutions Implemented
- eCommerce Platform: Magento Open Source
- ERP System: Acumatica
- Integration Platform: HexaSync
These integrated solutions provide the company with a robust infrastructure to manage their dropshipping operations effectively.
FAQs
- What is the salable quantity in Magento?
- How does the Google API optimize inventory selection?
- What is the role of Hexasync in inventory synchronization?
- How does multi-source inventory (MSI) work in Magento?
- Why is real-time inventory visibility important?
- What are the benefits of a dropshipping model for the company?
Conclusion
Transforming the company’s sales website with a dropshipping model has provided significant benefits, including expanded inventory, optimized order fulfillment, and enhanced customer satisfaction. By leveraging advanced inventory management strategies and synchronization tools like Hexasync, the company is well-positioned to continue its growth and success in the global market.