3. Dynamic Inventory in E-
commerce
What is Dynamic Inventory?
• The term Dynamic Inventory is
getting popular in E commerce and
supply chain today.
• It means the inventory is very fast
moving and is influenced not only by
one factor but multitude of factors
4. Dynamic Inventory and E Traders
• For E traders Inventory is the Life line.
• Inventory must always be available for E Traders
,otherwise business is lost.
• If the inventory moves very fast that from the time
customer orders the product before the fulfillment, it
becomes back ordered, it reduces customer confidence on
the retailer and will most likely not buy from the retailer
again.
5. Influences of Dynamic Inventory
• Components that affect the dynamic inventory are
• Suppliers Inventory level
• Time taken to restock inventory
• Sales at multiple outlets
• Multiple warehouse locations
• Drop Ship or stock and sell model
6. Importance of Dynamic System in Dynamic
Inventory
• Technology plays a major role in managing inventory
dynamically.
• Inventory should be synchronized across all source and
consumption points.
• Supplier inventory are sources and Marketing outlets are
consumption points.
8. A dynamic Inventory Management system
should manage the below
• Catalog Management
• Inventory Synchronization
• Product Management
• User Management
• Search Services
9. A dynamic Inventory Management system
should manage the below
• Suppliers should be able to view the current inventory
level and restock automatically.
• When a sale is made in one online marketing outlet, all
the other outlets are to be updated automatically.
• This will ensure inventory is current and updated
automatically.
10. Drop Ship Inventory Management
• In drop ship inventory management, the risk of dynamic
inventory is more.
• As the drop ship vendor may be selling to multiple
customers who in turn sells in multiple marketing outlets,
getting the current dynamic inventory status from the
drop ship vendor periodically is more important.
• Ideally, systems are to be updated every few hours of the
current inventory status.
11. Drop Ship Inventory Management
• This Blog Ecommerce-Ideas---Drop-Ship-15000-Items-from-
Honest-Green talks about how to setup a drop ship
business with Honest Green as the source supplier.
• Honest green provides daily automated catalog contents
and hourly inventory status updates.
• It is important to have a drop ship vendor who will be able
to automate the inventory feed information similar to
Honest Green.
12. Conclusion
• Dynamic Inventory is the current trend in Online E-
commerce business.
• It is important to have a good system that is able to
handle dynamic Inventory to manage online E-commerce
business.
• Refer Synerfye a provider of dynamic Inventory
Management System