Now Amazon.com, Walmart.com, and other large merchants demand to know your inventory every day. This tells them you have the stock to fill the orders.
Inventory available is the allocated inventory for a merchant. It’s a sub-set of all the inventory. The key is that it cannot be pledged to more than one merchant.
The allocation is calculated by customer service, then reported to the merchant through EDI. The calculation is based upon projected sales, especially upcoming promotions. It is made every day when yesterday’s sales are known.
The biggest stumbling block is the high peak between Black Friday and Christmas. During this period automation and fast processing is needed because manual processes cause delays. The hurdle is hidden during the year because the volume of orders is far lower. Fortunately, load tests can show failure point. The programming needed is to automate the calculation process and make sure it is done on time.
There is a dark side to the process too: if inventory is less than reported, orders will be cancelled and you will be hit with chargebacks. Perhaps, your product will not be displayed; leaving you with unsold merchandise after the season is over.
Even though we are just starting the new year, NOW is the time to prepare for Black Friday! Data Communication Solutions can prepare an inventory allocation program and the EDI integration (for the Inventory Available Transaction Set 846). Contact us to learn more.