The best thing about a Kickstarter funded project is that you know the initial demand when the project is still on paper. You know how many people want your product. In fact, you know exactly who they are. That’s quite a head start. So, inventory management is quite simple in a Kickstarter project.
So, what are the factors that are to be considered for efficient Inventory Management?
Tackling with immediacy:
Thanks to Kickstarter, your project accumulated capital quite fast, huh? Well, your backers expect the same immediacy in receiving their products. And they are justified, aren’t they? So, expedite and optimize the process. Kickstarter campaigns attract overseas backers also. So, your inventory has to be equipped to tackle this. Once your first lot goes out of the warehouse, you need to gear up for the next lot.
Having delivery partners:
Most successful Kickstarter projects find that it is a good practice to have delivery partners. This greatly helps in Inventory management. Shipping to warehouses, from warehouse to the backer/customer, between warehouses, from supplier to manufacturing unit- all of it should ideally be taken care of by a trusted shipping partner.
Maintaining warehouses in multiple locations:
Have warehouses in multiple locations. This would help you service demands from various locations. As mentioned earlier, customers expect quick delivery. And multiple warehouses would help in optimizing delivery time. At the same time, remember that a warehouse that can house N no of items expects the same rent whether you house N or less no. of items in it. So, plan accordingly and maximize utilization of warehouse space.
When you are dealing with storage, avoid mixing products in cartons. Pack same products in the same cartons. Label each carton with an efficient system. And stick to it. The product should be easily traced in a crowded warehouse.
Consequences of poor inventory management:
Unmet demands over a long time can kill your product. You lose your charm with the backer and with future customers if you fail to ship them the product on time. Unavailability of stock for an extended time will hot future sales. In the period that you are unable to satisfy demands, there will a dozen other competitors who will capture the market.
Automate as much as you can:
The new age business scene finds that automating inventory management helps a lot. This greatly eliminates the need for specialized personnel. If you think that’s not going to work for your business model, consider outsourcing the process to an efficient vendor. Bundle it with shipping if you can.
Remember that optimization of time, space and effort are key to efficient inventory management.
