SMALL BUSINESS GROWTH   |   3 minute read

3 Tools for transforming your business & combating the ghost economy

The ghost economy can have a serious impact on your business and its ability to grow and be profitable. It’s hard to pin down, but once you’ve understood the problem, identified its impact on your business, and worked out what needs to be done to prevent it from draining your funds, you need to implement the right systems to achieve those goals. Here are three tools you need in your belt to fix the leaks:

The ghost economy is costing you $1.75 trillion!

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#1: Supply chain automation

Automating your supply chain will help you simplify your business, slash the amount of tedious manual work required to manage the supply chain, and offer improved customer experience.

One key cause of the ghost economy is a glitchy supply chain, so automating your supply chain can help you to:

  • Prevent stockouts with customizable and integrated workflows.

  • Create rule-based triggers and alerts. For example, you can create a rule that automatically re-orders stock once it gets to a certain point, without any human intervention.

  • Improve the customer experience by sending automated order confirmation emails, providing peace of mind and no need to do this by hand.

  • Follow up with customers, notifying them when orders ship with automated emails that track their packages.

  • Get paid faster by automating payments and sales workflows.

#2: Accurate demand forecasting

Overstocking is another hidden cash flow drain associated with the ghost economy. By implementing automated demand forecasting, you can take the guesswork out of scaling your business, by minimizing the risk of ordering too much inventory. Being overstock leaves you having to sell at a loss or store extra inventory that’s not generating a profit, so smart reporting saves expenditure and optimizes your stock levels according to demand.

Demand forecasting can help you:

  • Prevent overstocks

  • Analyze sales performance data, identify trends, predict future sales, allocate inventory, and fulfill orders more efficiently

  • Minimize inventory risk by analyzing sales channel performance and allocating inventory accordingly

  • Maximize profitability by making data-informed procurement and location decisions

  • Reduce inventory costs by understanding how historical performance and seasonality combine to influence future demand

#3: Flexible order routing

Automated order routing allows you to optimize the supply chain, manage inventory per location and route your orders to the correct location at the click of a button, rather than a time-consuming manual search to choose the right warehouse for the right sale.

Flexible order routing allows you to:

  • Leverage powerful geo-routing logic and real-time stock levels to fulfill international orders from the nearest warehouse.

  • Fulfill orders from the warehouse closest to the customer and designate a fall-back warehouse of your choice if the closest warehouse is low on stock.

  • Automatically assign orders with large quantities to be fulfilled from a warehouse of your choice.

Learn more about the ghost economy, how much it costs businesses and how to combat it by downloading our ghost economy eBook, which explains all the tips and tricks you need in order to bust the ghost economy and stop hidden profit leaks.

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