Best Practices in Stock Control Illustrated (Visual Guide)
Get Our EBOOK NOW for supply chain leaders seeking to master inventory management. In today's fast-paced world, traditional inventory tactics won't cut it. Embrace technology in your supply chain, and beef up your inventory game!
Here's how to level up your inventory management by following these 11 steps:
1. ABC Your Warehouse Organization
Thanks to ABC analysis, supply chain leaders can better manage stock activities and organize warehouse space wisely. ABC analysis indicates how items sell and their impact on business value[1]. Employing such strategies requires an aptitude for data analysis, collection, and monitoring[1].
2. Get Sales and Inventory In Sync
Recognize the inseparable relationship between sales and inventory. Higher sales equate to faster inventory flow. With the explosion of SKU proliferation and globalized e-commerce, tracking sales can feel overwhelming, but technology's here to make data processing less gruesome[1].
3. Leverage Tech for Inventory Flow Insight
Utilize cutting-edge technologies like RFID sensors, GPS, IoT, and analytics to grasp granular inventory movement within and beyond the warehouse[1].
4. Automate Inventory Management Burden
Inventory management has never been more crucial in the modern supply chain. Automated systems are essential to expedite replenishment, recognize inventory trend changes, and minimize fulfillment problems. Consider implementing drop shipping for easier inventory handling and consumer delivery[1].
5. Create an Inventory- boosting Tech Stack
Your technology stack should enrich inventory management. Priority should go to upgrading legacy systems that lack inventory management features or the capacity to view inventory across various channels[1]. The tech stack should also accommodate labor and logistics functions as they play a role in inventory management[1].
6. Humane Inventory Damage Management
Surplus stock and damaged items can be costly and risky in the e-commerce-ruled world. Identify and categorize defective stock differently from regular inventory. Throwing away damaged products is the last resort. Make sure to destroy them responsibly. Dumpster diving near your stores may attract unwanted attention and harm security[1].
7. Manage Inventory in a Multi-Channel World
Effectively manage inventory across all channels, including physical stores, especially for buy online, pick up in-store (BOPIS) fulfillment.
8. Track In-Transit Inventory
Monitor inventory during transit to ensure its transportation needs are managed, and you remain prepared for demand[1].
9. Strategize Demand and Lead-Time Management using Data
Data helps manage transportation needs and better prepare for industry changes. Employ advanced analytics for seasonal planning and enjoy a proactive approach to supply chain peak seasons[1].
10. Execute Continuous Inventory Reviews
Adopt continuous inventory management to efficiently manage stock levels and take required actions with minimum human interaction.
11. Utilize Drop Shipping for Lower Inventory Burden
Incorporate drop shipping and other novel strategies like cross-docking, BOPIS, and other methods to reduce on-hand inventory levels, reduce costs, and streamline operations.
Transform inventory management using technology and best practices to thrive in today's omnichannel supply chain environment. Acquire our ebook for a deeper understanding of supply chain optimization!
Article provided by Dave Joseph at Veridian. Originally published on March 26, 2020.
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- Automation in inventory management can significantly streamline operations by expediting replenishment and minimizing fulfillment problems through the use of automated systems, as part of a comprehensive technology stack that also includes data-and-cloud-computing solutions.
- The transportation aspect of supply chain management plays a key role in inventory management, particularly in understanding inventory movement within and beyond the warehouse, which can be achieved through the implementation of technology such as RFID sensors, GPS, IoT, and analytics.
- For an optimal supply chain, logistics functions must be adequately accommodated within the technology stack, as they directly impact inventory management and overall supply chain efficiency.
- To compensate for the ever-changing landscape of demand planning, it is essential for supply chain leaders to employ advanced analytics to strategize demand and lead-time management, using data to better prepare for industry changes and seasonal planning.
- Utilizing technology, such as drop shipping and cross-docking, to reduce on-hand inventory levels and streamline operations is a crucial strategy in today's omnichannel supply chain environment, as it lowers costs and increases overall efficiency.
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