Ghost Inventory Stagnating Sales: How to prevent a Phantom Inventory?

Walking into a supermarket to find the shelves of the most popular items empty makes you walk the other way. In the digital domain, this phenomenon gets a little complicated. For an online store, there is often a difference between the exact real stock in the warehouse and electronic stock, which customers can see “on sale.” In simple words, when the actual stock to sell is lesser than the electronic stock on display, that stock actually does not exist; hence, it’s a ghost inventory.
What causes Ghost Inventory?
eCommerce platforms can only relay the data that you update for your inventory. Some classic cases causing a ghost inventory include errors in physical inventory audits, poor records and updates on sales made, lack of real-time/dynamic updates in case of bulk orders, slow replenishment of orders, or damaged goods marked for sale.
Parts and Planes recommends ensuring no ghost items linger in your inventory to avoid the following:
eCommerce platforms can only relay the data that you update for your inventory. Some classic cases causing a ghost inventory include errors in physical inventory audits, poor records and updates on sales made, lack of real-time/dynamic updates in case of bulk orders, slow replenishment of orders, or damaged goods marked for sale.
Tips to prevent Phantom Inventory
While there are diverse opinions on whether or not a phantom inventory should be leveraged, a transparent and streamlined process can be ensured by preventing a ghost inventory. Some basic tips can help you get rid of a phantom inventory or, even better, not encounter one in the first place.
  • Spot any shrinkage
i.e., products being lost or stolen from your inventory. Consider employee errors or misplacements that could take place to avoid this. While plane parts are usually not things that could get misplaced or be miscounted, some of these numbers might be falsely reported due to errors in inventory management.
  • Implement automation for updates
on items sold and ensure the delay in updates can be bridged to avoid a phantom inventory.
Eliminate Ghost Inventory to keep your sales from stagnating
At the end of the day, both your sales and your customers’ purchase process are stagnated due to a ghost inventory. Create a robust inventory management process to ensure your digital store is a true reflection of your inventory. Thus, sales can be boosted, and a robust buying process can be relied upon!
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Partsandplanes

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