Month: May 2025

What is a Perpetual Inventory System? Definition & Example

Perpetual-Inventory-System

Estimated reading time: 2-3 minutes

Managing inventory can feel like a juggling act—keeping track of what’s coming in, what’s going out, and what’s left on the shelves. That’s where a perpetual inventory system comes in, offering a smarter, real-time way to stay on top of it all. At Selery Fulfillment, we know how vital it is to have a clear picture of your stock, and we’re here to help businesses like yours streamline the process. So, what exactly is a perpetual inventory system, and how can it work for you?

How Does a Perpetual Inventory System Work?

Imagine never having to guess how much stock you have. With a perpetual inventory system, every time you add or remove an item—whether it’s a sale, a new shipment, or a return—the records update instantly. This magic happens thanks to tools like barcode scanners, point-of-sale (POS) systems, and inventory software working together seamlessly. Unlike older periodic systems that rely on occasional manual counts, this approach keeps your inventory data fresh and accurate around the clock.

Two Ways to Value Your Inventory

When it comes to tracking costs in a perpetual system, there are two main methods businesses lean on:

First-In, First-Out (FIFO): Picture your inventory like a grocery store shelf—the oldest items get sold first. With FIFO, each sale pulls from the earliest stock, and the cost of goods sold reflects those original prices. It’s a practical choice for businesses dealing with perishable goods or steady price trends.

Last-In, First-Out (LIFO): Flip the script—here, the newest inventory moves out first. LIFO updates your stock count based on the latest arrivals, tying your costs to more recent prices. It can be handy in industries where prices fluctuate often.

Both methods have their perks, and the right one depends on your business needs. Not sure which fits best? Selery Fulfillment can guide you toward a solution tailored just for you—reach out today to explore your options!

The Pros and Cons of Going Perpetual

Like any tool, a perpetual inventory system has its highs and lows. Here’s the rundown:

Advantage

Real-Time Insights: You’ll always know what’s in stock, making it easier to predict demand and restock smartly.

Better Accuracy: Constant updates cut down on errors, so your records match reality more closely.
Cost Savings: Automation takes the grunt work out of inventory tracking, saving time and money in the long run.

Disadvantages

Upfront Investment: Setting it up means spending on tech and training, which might feel steep at first.
Tech Hiccups: Even with automation, glitches or human errors can sneak in and throw things off.

Weighing the pros and cons? It’s a big decision, but the payoff in efficiency can be huge—especially with a partner like Selery Fulfillment to make implementation smooth and stress-free.

Real-World Example: Retail Made Simple

Picture a busy retail store. Every time a customer buys a shirt, the barcode scanner pings the system, and the inventory updates on the spot. A new shipment arrives? Same deal—stock levels adjust instantly. This kind of precision keeps shelves stocked and customers happy, all without the chaos of manual counts. It’s a game-changer for businesses that can’t afford to miss a beat.

Ready to Take Control of Your Inventory?

A perpetual inventory system isn’t just about keeping count—it’s about giving your business the clarity and control to thrive. At Selery Fulfillment, we’re passionate about helping you manage your stock effortlessly, so you can focus on growing your business. Ready to see how we can make it happen for you? Contact us today and let’s get started!

LTL Freight Meaning: What is Less-Than-Truckload & Why It Matters

LTL Freight Meaning: What is Less-Than-Truckload & Why It Matter

Estimated reading time: 2-3 minutes

In logistics, the acronym LTL stands for Less-Than-Truckload, a shipping method designed for businesses that don’t require an entire truck to move their goods. Unlike Full Truckload (FTL), LTL freight combines smaller shipments from multiple customers into one truck, optimizing space and cutting costs. This practical, flexible solution has become essential for businesses looking to streamline operations, and it’s a cornerstone of modern supply chains. For our company understanding LTL is crucial for cost-effective, efficient shipping that meets the diverse needs of clients.

LTL vs. FTL: Understanding the Difference

To fully understand LTL shipping, it helps to compare it to FTL. LTL focuses on efficiency for smaller loads—think pallets or crates that don’t fill an entire trailer. A single truck might carry goods for several companies, making multiple stops along the route. FTL, in contrast, involves one shipper, one load, and one destination. If you’re moving 15,000 pounds of product across the country, FTL might be your best choice. However, for a 500-pound inventory shipment heading to a regional retailer, LTL is the more practical solution.

The decision between LTL and FTL comes down to volume, urgency, and budget. LTL is ideal for businesses with smaller, frequent shipments—like e-commerce sellers, manufacturers shipping parts, or retailers restocking shelves. FTL, on the other hand, is best for larger, time-sensitive shipments requiring direct delivery.

How LTL Trucking Works

LTL carriers are the unsung heroes of this system, operating like a well-oiled relay race. It starts when a shipper hands off their freight—say, a few pallets of electronics—to a carrier like XPO Logistics or Old Dominion. The carrier consolidates it with other shipments at a terminal, plotting an optimized route. Trucks then hit the road, dropping off and picking up along the way, until your goods reach their endpoint. Tracking tech keeps shippers in the loop, offering real-time updates via online portals or apps.

The benefits? Cost savings top the list—why pay for a full truck when you’re only using a fraction? LTL also reduces waste, aligning with sustainability goals by maximizing truck space. Plus, it’s scalable: whether you’re shipping 100 pounds or 5,000, LTL adapts. The trade-off is speed—multiple stops mean longer transit times than FTL’s point-A-to-B sprint—but for many, the savings outweigh the wait.

LTL Freight in Logistics & Supply Chain

LTL plays a vital role in transportation, bridging the gap for businesses that are too small for FTL but too large for parcel services like UPS or FedEx. It’s the ideal solution in the $900 billion U.S. freight market, according to the American Trucking Associations, striking the right balance between cost and capacity. For supply chains, LTL ensures inventory moves efficiently without breaking the bank.

LTL pricing depends on factors such as weight, distance, and freight class (a standardized measure of a load’s density and value). A 200-pound shipment from Chicago to Denver may cost between $150 and $300—much less than hiring an entire truck. However, delivery times can vary; expect two to seven days compared to the one to three days for FTL. Major carriers like FedEx Freight, Saia, and Estes dominate the space, using extensive terminal networks to keep goods moving efficiently.

Though it may not always grab the spotlight, LTL is indispensable. It powers e-commerce growth, just-in-time manufacturing, and retail distribution. For businesses, especially those managing unpredictable demand and tight margins, LTL is a lifeline—a reminder that you don’t need a full truck to make a significant impact on your operations.

Looking to optimize your shipping process? Selery offers efficient and cost-effective LTL shipping solutions tailored to your business needs. Contact us today to learn how we can streamline your logistics and help you save on shipping costs.

MOQ Meaning: What is MOQ & Why It’s Important in Business

MOQ Meaning: What is MOQ & Why It’s Important in Business

Estimated reading time: 2-3 minutes

Why Minimum Order Quantity Matters

In today’s competitive market, efficiency and cost management are essential for success. One term you’ll often hear, especially in manufacturing and supply chain management, is MOQ—Minimum Order Quantity. But what does it really mean, and why is it so important

MOQ plays a significant role in business, affecting everything from pricing to inventory management. This explanation covers the concept of MOQ, its influence on operations, and its importance for smarter business decisions. Understanding MOQ can assist small business owners and procurement professionals alike in making more informed choices for their businesses.

Why Minimum Order Quantity Matters

MOQ stands for Minimum Order Quantity. It’s the smallest number of units a supplier is willing to produce or sell in a single order.

For example, a supplier may require an MOQ of 500 units for custom t-shirts, meaning you can’t order fewer than that amount.

MOQ is a way for suppliers to ensure profitability and manage production costs. It’s often used in industries like manufacturing, wholesale, and e-commerce, where managing production runs and inventory is crucial.

Why MOQ Matters in Business

MOQ in Supply Chain Management

MOQ helps suppliers plan production and manage inventory, cutting down on waste and minimizing downtime. For buyers, MOQ impacts stock levels—ordering too few units might leave you without enough inventory, while ordering too many ties up capital in unsold goods.

For instance, a retailer ordering seasonal decorations may face high MOQs to meet demand. Ordering too little means missing out on sales, while ordering too much can lead to excess stock.

Impact on Pricing

Higher MOQs often lower the cost per unit because suppliers save money on bulk production. On the other hand, low MOQs can increase costs but give small businesses more flexibility, especially when testing a new product.

MOQ affects your profit margins and cash flow, so it’s important to factor it into your pricing strategy.

MOQ in Manufacturing and Shipping

In manufacturing, MOQs are usually set based on production setup costs, like machine calibration or mold creation. For example, a factory might require an MOQ of 1,000 units for phone cases to cover these initial costs.

With newer technologies, such as 3D printing, smaller MOQs are becoming possible, but the cost per unit can be higher.

Shipping MOQs ensure containers or pallets are packed efficiently, reducing transportation costs per unit. For example, an importer might need an MOQ of 200 boxes to ship goods economically by sea. Low MOQs can increase shipping costs if partial loads are used instead.

How to Determine MOQ for Your Business

When deciding on the right MOQ for your business, there are a few factors to consider:

  • Product Type: Custom or complex items typically have higher MOQs than simple products.
  • Supplier Size: Larger suppliers often set higher MOQs. Smaller suppliers may offer more flexibility.
  • Demand Forecast: Ensure your sales predictions match the MOQ to avoid overstocking or understocking.
  • Budget: Make sure you can afford the upfront cost of meeting the MOQ.

Negotiating MOQ with Suppliers

Building solid relationships with suppliers can lead to better MOQ terms. If you’re working with a new supplier, start with a small order and gradually scale as trust develops. You can also negotiate a higher unit price in exchange for a lower MOQ.

At Selery, we understand that every business has unique needs. That’s why we take a personalized approach to help businesses find the best MOQ solutions based on their specific requirements. Whether you’re a startup or an established enterprise, our team can guide you in navigating the complexities of MOQ to ensure your business operates efficiently and cost-effectively.