How To Avoid Inventory Overstocks And Understocks

Implement stock control systems to manage problem inventory, such as perishable stock, fragile equipment or obsolete materials. Perform regular preventive maintenance on machinery and equipment stock in storage if required by the manufacturer. Catalog data on problem stock location, cost and quantity to monitor shelf life and prevent waste. 3PL companies like ShipBob help ecommerce brands that use sophisticated software, so merchants can easily track inventory levels across any of ShipBob’s fulfillment center network in real time. In her day-to-day operations, Rhiannon recommends consistently doing inventory checks so you’re always aware of stock levels. This gives you enough time to make products (if you’re manufacturing in-house) or need to order wholesale from suppliers.

Use inventory control processes like blind receiving with barcodes and mobile scanners to prevent human error, inventory manipulation and shrinkage due to theft or negligence. Add images with product descriptions in your inventory database to improve purchasing and receiving processes, enhance accuracy and prevent misplaced inventory. It can be tough to find skilled inventory managers who are adept at the latest technology and can improve inventory strategy. Simply upgrading your inventory management platform with a host of features isn’t enough.

Healthy eating trends have even discounters like Aldi and Lidl improving their fresh offerings to include organic meats and freshly baked breads. In their pursuit of growth, these former hard discounters are stepping away from their highly efficient comfort zones previously built on simplicity, standardization, and large volumes. The increasing complexity as they experiment with fresher products, smaller store formats, and localized assortments will put their grocery supply chains to the test.

There are lots of different examples of perpetual automated inventory systems. Let’s take a look at some of the principal ones, along with their primary strengths and weaknesses. And while no one wants to think that their staff may steal from them, it pays to be vigilant. Showing social media app has a ghost as its mascot your staff that you keep an accurate inventory is a great theft deterrent. This means you can work methodically through your product set, making informed buying decisions instead of physically checking individual SKUs on your warehouse shelves to write a purchase order.

Optimizing the warehouse storage process can require a significant amount of time and money. However, the long-term results it provides will certainly benefit the success of your business. Investing in tools such as a warehouse management system will help you identify the right storage method for your facility while making it easy for you to analyze your warehouse storage space utilization.

(Read more about reducing carbon footprints in supermarkets, convenience, food service, and e-grocery here). Even though traditional supermarkets have decades of experience dealing with fresh products, many still do not excel in this area. Their supply chains are reactive enough to support frequent deliveries, but their replenishment planning is not up to scratch. Consider the example in Figure 12 below, which shows the sales impact when store staff created a table display in addition to the regular shelf space for a product. Though nobody recorded this change in the master data, the system was easily able to track the demand impact as a factor of how the product was displayed in the store.

Unfortunately, because this has rarely been the case, many collaboration initiatives fail. When a price will be lowered temporarily, for example due to a supplier campaign, order less just before the price reduction and stock up when the price is low. When you know the price of a product will go down, only order the quantity you absolutely need before the price change, and then stock up after the new price has come into effect. When you know that the price of a product will go up, stock up just before the price increase.

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