Dr. N.G.P.

ARTS AND SCIENCE COLLEGE

(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2 nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100

TOPIC:SALES AND INVENTORY MANAGEMENT OF

AMAZON USING BUSINESS ANALYSIS

PRESENTED BY
S.SOBHIKA AND T.KOUSHIKA
M.COM (CS)
DR.N.G.P ARTS AND CIENCE COLLEGE
 INTRODUCTION TO SALES AND INVENTORY
MANAGEMENT

 A sales and inventory management system is a software tool that helps businesses
track their sales and inventory in a streamlined manner. It offers features such as
sales forecasting, order management, inventory handling, and stock analysis . The
goal of this system is to digitize sales and stock activities, and improve overall
business efficiency.
 There are many inventory management software solutions available in the market,
each with its own unique features and pricing. Forbes Advisor has researched and
ranked 10 top picks based on their price, features, and more . Microsoft Dynamics
365 offers an inventory management system that tracks, manages, and organizes
inventory levels, orders, sales, and deliveries . NetSuite provides inventory
management software that helps companies identify which and how much stock to
order at what time. It tracks inventory from purchase to the sale of goods.
 OBJECTIVES OF SALES AND INVENTORY
MANAGEMENT
 Inventory management is a crucial aspect of any business. The primary
objective of inventory management is to ensure that you have just the right
amount of inventory on hand to meet customer demand. Here are the top 7
objectives of inventory management:
 Ensure optimal inventory levels
 Improve cash flow
 Reduce storage requirements
 Minimize waste and shrinkage
 Reduce product shelf-time
 Support demand planning
 Analyze sales patterns
 To achieve these objectives, businesses use inventory management software
or system. The software helps track the inflow and outflow of inventory,
automate purchases, and send alerts when stock levels fall below the
 IMPORTANCE OF INVENTORY MANAGEMENT

 INVENTORY MANAGEMENT SYSTEMS HELP WITH ORGANIZATION

 An inventory management system helps keep your business more organized. Without tracking
and managing your inventory, it’s difficult to know what you need, when you need it and in
what quantity. With a quality inventory management system, you have detailed records of every
asset in your business. You can see all of the moving parts in one place. You are easily able to
see the products that are moving and those that are selling slowly. You can see if certain
inventory sells at certain times of the year, or even during certain times of the day. You can
even set your system to reorder a certain popular inventory item so it’s never out of stock for
your customers. Having all of this information and capability in one place allows you to make
informed decisions about the needs of your company.
 TRACKING AND TRANSPARENCY
 One of the massive advantages of an inventory management system is increased tracking and
transparency. With all of your assets constantly being tracked, you can clearly see where the
strengths and weaknesses of your business are. Further, you always know where your inventory
is and what it’s worth. With barcode scanners being used to track products through their entire
life cycles, you are able to see where they are located in real time, meaning it’s much more
difficult for inventory to fall through the cracks. With an inventory management system, you
can also prevent being overflowed with inventory, by keeping just enough in stock. This
minimizes the amount of unused inventory you have on hand, and thus lowers your business’s
 IMPORTANCE CONTINUED

 IMPROVED VENDOR RELATIONSHIPS

 Another plus of an inventory management system is that it can help improve your
relationships with vendors. With all items being tracked seamlessly, both you and the
vendor are kept in-the-know of your ordering needs. You can set up your system so
certain items are automatically re-ordered at specific intervals based on order history.
Further, you can schedule deliveries in a much more systematic and organized way.
This keeps relations running smooth, with both parties knowing exactly what is
expected.
 INTEGRATION
 A final important feature of an inventory management system is integration. You can
set up your inventory management system to integrate with a number of other
software systems, including your accounting and enterprise resource planning (ERP)
systems. This allows you to understand the value of the items you have at any point in
time, assisting you with accounting and asset management. Other systems that can be
integrated with an inventory management system are point-of-sale (POS) systems that
are used to ring up purchases (like cash registers) and purchase orders (PO) systems
that track orders as they are placed. Linking up your various systems allows for better
 INVENONTORY MANAGEMENT SUSTEM USES

 Inventory management software tracks, manages, and organizes inventory

levels, orders, sales, and deliveries. The purpose of inventory management
software is to maintain an optimal inventory level, track goods during
transport between locations, receive new items, manage warehouse processes
such as picking, packing, and shipping, prevent product obsolescence and
spoilage, and ensure your products are never out of stock.
 Software for inventory management automates what used to be a time-
consuming, manual process of counting each item one by one and recording it
on paper. Digitizing this process not only makes it more accurate, it saves
valuable time.
 Core capabilities include inventory optimization, product identification and
tracking, service management for service-oriented companies, asset tracking,
and reorder points. Inventory management software can provide accurate data
on inventory conditions in real time, and also give you insights into trends so
that you can respond to changing market demands and conditions without
 USES OF DATA ANLYTICS IN INVENTORY
MANGEMENT
Data analytics aids in avoiding overstocks and outages in various ways:
 Demand Forecasting: Accurate demand forecasting allows businesses to
stock up according to predicted sales, preventing overstocks and outages.
 Inventory Optimization: Data analytics can identify the optimal inventory
levels for each product, ensuring minimal waste and maximum availability.
 Trend Analysis: By analyzing sales trends, businesses can anticipate spikes
and dips in demand and adjust their inventory accordingly.
 Predictive Analytics: Advanced analytics can predict future trends and
market changes, allowing businesses to prepare and adapt.
 Real-time Monitoring: Live data lets businesses track their inventory
quickly, preventing sudden stock-outs and excess inventory.
 HOW DOES AMAZON USE INVENTORY
MANAGEMENT SYSTEM
 Amazon’s inventory management strategy is based on a combination of forecasting, automation, and
analytics. This strategy helps Amazon to accurately predict customer demand, optimize inventory
levels, and reduce costs 1. To effectively manage inventory on Amazon, businesses can use several key
strategies and best practices
 Forecasting Demand: Accurately forecasting demand is key to ensuring that you have enough
inventory on hand to meet customer demand, without overstocking. This involves analyzing historical
sales data, market trends, and other factors to predict future demand.
 Setting Optimal Stock Levels: Once you’ve forecasted demand, you can use this data to set optimal
stock levels for each product. This will help you avoid stockouts and overstocking, which can both be
costly.
 Automating Inventory Management: Amazon provides free and paid solutions that businesses can
use to automate their inventory management. For example, Amazon’s new FBA Inventory Tool
combines features from old inventory tools to show you inventory-specific metrics, actions, and
recommendations across restock, excess, aged, unfulfillable, and stranded inventory types in a single
view to simplify FBA inventory management.
 Analyzing Inventory Performance: Regularly analyzing your inventory performance can help you
identify areas for improvement and optimize your inventory management strategy. You can use
Amazon’s inventory performance dashboard to track your inventory health, restock recommendations,
and stranded inventory.
 By adopting these modern inventory management techniques, businesses can have a clear picture of
 CONCLUSION

 Inventory management software tracks, manages, and organizes inventory

levels, orders, sales, and deliveries. The purpose of inventory management
software is to maintain an optimal inventory level, track goods during
transport between locations, receive new items, manage warehouse processes
such as picking, packing, and shipping, prevent product obsolescence and
spoilage, and ensure your products are never out of stock.
 Software for inventory management automates what used to be a time-
consuming, manual process of counting each item one by one and recording it
on paper. Digitizing this process not only makes it more accurate, it saves
valuable time.
 Core capabilities include inventory optimization, product identification and
tracking, service management for service-oriented companies, asset tracking,
and reorder points. Inventory management software can provide accurate data
on inventory conditions in real time, and also give you insights into trends so
that you can respond to changing market demands and conditions without
losing out on sales opportunities.
THANKING YOU