Harnessing Adobe Commerce for Effective Inventory Management

Do you want to stop managing your inventory in the dark?

Picture this…

You’re an ecommerce store owner. Half your product catalog is out of stock or overstocked. Then your top-seller goes out of stock just as demand surges.

Sound familiar?

If you’ve ever run an online store, you know inventory management can be a serious headache.

Inventory problems are directly linked to lost sales.

In fact, stockouts account for 40% of lost sales.

Customers don’t wait for out-of-stock items — they go to competitors. And they never come back.

But here’s the good news…

Adobe Commerce has powerful tools that can give you control of your inventory. With the right use of Adobe Commerce Services, you can automate inventory management tasks, minimize stockouts and overstocks, and optimize your inventory operations across the board.

Ready to get started?

Let’s take a look at:

  • Why Adobe Commerce Is The Best Platform For Inventory Management
  • How Adobe Commerce Inventory Management Features Work
  • Configuring Multi-Source Inventory Like A Pro
  • The Advanced Inventory Automation You Didn’t Know You Needed
  • Metrics For Measuring Inventory Success

Why Adobe Commerce Is The Best Platform For Inventory Management

Adobe Commerce isn’t just a platform for running an ecommerce business…

It’s also the inventory management system that powers 60% of Fortune 1000 firms with direct-to-consumer businesses. Adobe Commerce is used by industry leaders like Nike, Hermès, and HP to manage complex inventory operations.

But why exactly is Adobe Commerce so great for inventory?

It all comes down to Adobe Commerce being built for enterprise-level inventory management.

While most platforms get tripped up by even basic inventory challenges like stock tracking, Adobe Commerce features were designed from the ground up to handle:

  • Warehouse inventory across multiple locations
  • Complex product variants
  • Inventory synchronization across channels and platforms
  • Advanced inventory forecasting
  • Automatic reorder points

Adobe Commerce Services is big business. Adobe Commerce is on track to facilitate a $173 billion in annual GMV in 2025. That’s a compound annual growth rate of 11.6% from just last year. Adobe Commerce can’t manage that much inventory if it isn’t up to the challenge.

One final important point…

Adobe Commerce’s inventory management features aren’t bolted on like some kind of afterthought. Inventory management is integrated into every other feature of the Adobe Commerce platform. From product catalogs to order processing, the Adobe Commerce system works together in ways most other platforms simply can’t match.

How Adobe Commerce Inventory Management Features Work

I want to give you a quick overview of the Adobe Commerce inventory system’s most powerful features…

Multi-Source Inventory (MSI)

Adobe Commerce MSI lets you track and manage inventory from multiple sources — warehouses, storefronts, drop shippers, and more. Adobe Commerce automatically calculates salable inventory from all sources to determine the best way to fulfill each order.

Real-Time Inventory Updates

Adobe Commerce automatically updates inventory in real-time across all channels after every transaction, return, or manual adjustment. That means no more overselling because your inventory data is always accurate.

Advanced Stock Management

Adobe Commerce lets you configure each product’s minimum stock level, backorder settings, and out-of-stock levels. The platform manages complex fulfillment rules behind the scenes.

Source Selection Algorithm (SSA)

Adobe Commerce’s SSA automatically selects the best warehouse or inventory source to fulfill an order based on distance, stock levels, shipping costs, and other configurable priority rules.

Working with certified Adobe Commerce developers ensures your business can implement Adobe Commerce Services with the inventory features configured exactly the way your business needs. Custom developers understand the Adobe Commerce platform inside and out. They can also help connect Adobe Commerce to other software and systems your company uses to create an integrated inventory management ecosystem.

Configuring Multi-Source Inventory Like A Pro

Setting up multi-source inventory can seem complex, but I want to walk you through the key steps…

Step 1: Define Sources

First, create “sources” for every warehouse, storefront, drop ship supplier, or other location where you store inventory. Sources must have correct address details so the Source Selection Algorithm can calculate distances.

Step 2: Create Stocks

Next, create “stocks” that connect sources to sales channels (websites). You can have multiple stock records for different markets or customer segments.

Step 3: Assign Sources To Products

For each product, specify which sources carry inventory and the stock quantity available. Adobe Commerce aggregates these details to determine total salable stock.

Step 4: Configure Algorithms

Configure source priority and distance-based rules for the Source Selection Algorithm (SSA). This algorithm automatically determines how Adobe Commerce selects fulfillment locations.

Done correctly, Adobe Commerce automatically resolves complex inventory allocation decisions instead of you having to manage it manually.

The Advanced Inventory Automation You Didn’t Know You Needed

These advanced inventory features are where Adobe Commerce really excels…

Automatic Reorder Points

Set minimum stock level thresholds for each product at each source. Adobe Commerce automatically triggers supplier reorder workflows when inventory drops below the threshold.

Low Stock Alerts

Get advance notification when popular items approach stockouts. You can configure different threshold levels based on demand, sales velocity, and lead times for different products.

Demand Forecasting Integration

Adobe Commerce integrates with advanced analytics platforms for demand forecasting. This helps predict future needs to prevent both stockouts and overstocks.

Automated Backorder Management

Enable backorders so customers can order out-of-stock items with delivery expectations. Adobe Commerce automatically tracks these orders and fulfills them when inventory arrives.

One more important stat…

Companies who use inventory management automation see 78% of eCommerce companies plan to invest in these features by 2025. If that isn’t a sign for businesses to get moving on implementing automated inventory solutions now, I don’t know what is.

Metrics For Measuring Inventory Success

You can’t improve your inventory without measuring your current performance…

Adobe Commerce’s reporting features let you track key inventory metrics like:

Inventory Turnover

Track how quickly inventory moves through the system. The average turnover rate is 8.5, but top businesses achieve much higher rates.

Stockout Frequency

Track frequency of out-of-stock incidents on top-selling products.

Small improvements can have big revenue impact since stockouts cause immediate lost sales.

Inventory Carrying Costs

Identify the total money tied up in inventory. Aim to optimize stock levels for maximum availability with minimum cash.

Order Fulfillment Efficiency

Measure average order shipping time and rate of on-time fulfillment. Well-managed inventory systems can reduce fulfillment times by 23%.

Inventory Accuracy Metrics

Track inventory count discrepancies between your system and physical counts. Adobe Commerce Services can help you achieve accuracy levels above 95% through real-time inventory updates.

Bottom Line Up Front

Adobe Commerce is the most powerful ecommerce platform in the world, and its inventory management system is no exception. Adobe Commerce gives you enterprise-level inventory management features that help you automate inventory tasks that used to require custom development.

In fact, those most successful ecommerce companies aren’t always the ones with the best products. Instead, it’s those companies that have the best operations. When you’re able to have the right products in stock at all times while keeping carrying costs to a minimum, that’s when you start to generate a real and sustainable competitive advantage.

Inventory management isn’t something you can set-and-forget either. Continuously review inventory reports and other insights to identify ways to optimize your performance over time. With enough iteration and refinement, you can not only reduce costs and errors but also grow your overall revenue by optimizing inventory levels and management strategies.

If you don’t address your inventory management issues, they’re only going to continue to cost you money and sales. The solution to those problems already exists. The question is whether you’ll implement it now or after every competitor in your industry has already figured it out.

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