Introduce

When businesses decide to transform their business model—from traditional retail to e-commerce, from wholesale to retail, or expand into a multi-channel model—one of the biggest challenges is inventory management . High inventory levels, synchronizing inventory across channels, and avoiding overselling are issues every business faces.

Based on practical experience, the lack of a centralized inventory management system can increase transition costs by 20-30% and lead to numerous operational errors. This article will guide you on how to scientifically handle inventory during a business model transition and introduce GTG CRM's Product & Inventory Management solution to optimize this process.

Challenges when transforming a business model

❌ Product data is fragmented

When selling across multiple channels (Website, Shopee, Lazada, TikTok Shop), each platform has its own management system. This means businesses have to update product information, prices, and inventory on each channel individually – time-consuming and prone to errors.

❌ Inventory is not synchronized across channels

A product has 10 units in stock but is listed for sale on 3 different channels. When one channel sells 5 units, the other two channels still show 10 units remaining – leading to overselling and customer complaints.

❌ Difficulty in calculating price and profit

When transitioning to a new business model, product repricing needs to take into account: cost price, VAT, operating costs, and the desired profit margin. Doing this manually in Excel is prone to errors.

❌ Unresolved inventory

Products that don't fit the new model need to be liquidated or adjusted, but there's a lack of tools to effectively track and analyze their effectiveness.

Solution: GTG CRM Product Hub

Product Hub is a centralized product and inventory management system that helps businesses:

• ✅ Centralized management - One place to manage all products, inventory, and variations.
• ✅ Multi-channel synchronization - Connect Shopee, Lazada, and TikTok Shop with two-way synchronization.
• ✅ Real-time inventory management - Track inventory in real time, avoid overselling.
• ✅ Automatic calculation - Cost price, VAT, selling price, and profit are calculated automatically.
• ✅ Website integration - Products automatically display on your website

Guide to handling inventory when transitioning to a new business model.

Step 1: Inventory and classification of goods

Before making the switch, you need to have a clear picture of your current inventory:

1. Create a warehouse in Product Hub

• Access Product Hub → Inventory
• Add main warehouse, subsidiary warehouse, branch warehouse
• Enter the following information: Warehouse name, code, address, contact person.

2. Import the product list.

• Create a product with complete information: SKU, name, category, brand.
• Add variations (colors, sizes) if available.
• Assign products to specific warehouses.

3. Product classification

• Group A : Products suitable for the new business model, continue selling.
• Group B : Products requiring price or strategy adjustments.
• Group C : Excess inventory needing liquidation

Step 2: Re-evaluate the product price.

Product Hub helps you automatically calculate prices based on the following formula:

Selling price = Original price + VAT + Desired profit

• Enter the original cost price of the product.
• The system automatically calculates VAT according to regulations.
• You set your desired profit margin (e.g., 20%).
• The system automatically calculates the final selling price.

For example:

• Original price: 100,000 VND
• VAT (10%): 10,000 VND
• Profit (20%): 20,000 VND
• → Selling price: 130,000 VND

Step 3: Synchronize products across channels

Once you have centralized product data, you can push your products to multiple channels simultaneously:

1. Connecting e-commerce platforms

• Shopee: Connect your Shopee shop
• Lazada: Connect with Lazada Shops
• TikTok Shop: Connect your TikTok shop

2. Push the product onto the platform.

• Select the product you want to promote.
• Configure information for each platform (if needed).
• Click "Boost product"
• Automatic synchronization system

3. Two-way synchronization

• When an order is placed on Shopee/Lazada/TikTok, the inventory is automatically deducted.
• Inventory is updated in real-time across all channels.
• Completely avoid overselling.

Step 4: Managing Inventory

For products in Group C (stock clearance):

1. Mark the status

• Change the product status to "Out of Stock" or "Draft".
• The product will not be displayed on the website or e-commerce platforms.

2. Create a liquidation program.

• Create a separate product category for clearance items.
• Huge discounts for quick processing.
• Use GTG CRM's marketing features to run targeted ads.

3. Monitor effectiveness

• The dashboard displays inventory levels over time.
• Report on best-selling/slow-selling products
• Adjust strategy in a timely manner.

Step 5: Continuous Optimization

After the model transition, monitoring and optimization are crucial:

Monitor the following metrics:

• Average inventory
• Inventory turnover rate
• Stockout rate
• Revenue by channel

Process improvement:

• Based on data to forecast demand.
• Adjust the quantity of goods to be imported.
• Optimize inventory allocation between warehouses.

Benefits of using Product Hub

Important note

⚠️ Data consistency : Just like in advertising – keywords must match the landing page – product information across channels must be completely consistent. If a customer sees a price of 100k on Shopee but 120k on the website, they will leave immediately.

⚠️ Pre-listing test : Use the "Preview" feature to see how your product will look on your website before listing it on e-commerce platforms. Adjust images and descriptions to suit each platform.

⚠️ Data backup : Before migrating your business model, export all product and inventory data as a precaution.

⚠️ Employee Training : The new system requires new workflows. Ensure employees are fully trained to avoid errors in the initial phase.

Conclude

Managing inventory during a business model transition is not easy, but with a centralized management system like GTG CRM's Product Hub, you can control the entire process scientifically and efficiently.

Instead of worrying about fragmented data and inconsistent inventory, you can now focus on business growth with the confidence that the system is running smoothly.