A common inventory management strategy used in cross-border e-commerce to reduce costs is just-in-time (JIT) inventory management. JIT inventory management involves minimizing inventory levels by only ordering and stocking products as they are needed. This strategy can help reduce carrying costs, improve cash flow, and reduce the risk of stockouts.
In JIT inventory management, businesses closely monitor their sales and production levels to determine when they need to order new inventory. This requires close coordination with suppliers to ensure that they can quickly and efficiently fulfill orders.
JIT inventory management can be particularly effective in cross-border e-commerce, where shipping times and costs can be significant. By minimizing inventory levels, businesses can reduce the amount of time and money tied up in inventory and improve their ability to respond to changes in demand.
However, JIT inventory management requires careful planning and coordination to ensure that businesses can meet customer demand without running out of stock. It may also require businesses to work with suppliers who are able to quickly and efficiently fulfill orders.