In this episode of the Ecommerce Finance Podcast, Stephen Brown and Scott Scharf discuss the critical aspects of selecting and implementing an inventory management system for ecommerce businesses. They explore the importance of inventory management as a key asset, the methodology for selecting the right system, and the expectations for implementation timelines.

The conversation also covers when to consider an inventory management system, the differences between ERPs and inventory management systems, and the necessity of documenting processes for successful implementation.

Takeaways

• Inventory is often the biggest asset in consumer product businesses.

• Many entrepreneurs struggle with inventory management due to reliance on spreadsheets.

• Selecting an inventory management system requires a clear understanding of business needs.

• Demos should focus on specific processes relevant to the business.

• Implementation of inventory systems often requires external expertise.

• Budgeting for implementation costs is crucial for success.

• Hiring an operations manager can significantly improve system adoption.

• Pain points in inventory management often indicate the need for a new system.

• Trusting but verifying your 3PL is essential for accurate inventory tracking.

• Documenting processes ensures consistency and efficiency in operations.

Sound Bites

"Trust but verify your 3PL."

"Hire someone to help you with this."

Chapters

00:00 Introduction to Inventory Management Systems

03:16 Challenges in Inventory Management

06:25 The Importance of Comprehensive Processes

09:23 Selecting the Right Inventory Management System

12:37 Methodology for Choosing an Inventory System

18:27 Implementation Expectations and Budgeting

25:56 Implementation Timeline and Feedback Mechanisms

31:52 The Role of Operations Management in E-commerce

37:15 Inventory Management Systems vs. 3PLs

39:01 Evaluating ERP Systems for E-commerce

47:41 Documenting Processes for Successful Implementation

Guest Info

• Scott Scharf
• Scott@scharftech.com
• https://www.linkedin.com/in/scottscharfcc/

Work with Us

Struggling to make sense of your ecommerce financials? Let LedgerGurus handle your accounting so you can focus on growth.

Take control of your inventory accounting and unlock real profitability with our inventory consulting services.