The current pandemic has created many disruptions for small and large businesses alike. In fact, about 56% of retailers experienced this disruption first hand. With the disruptions, many retailers were required to restock more goods in warehouses. Unfortunately, restocking a lot of inventory also creates unique problems.
Purchasing too much of one item that suddenly has a drop in demand can cause a waste of capital if products cannot be moved. You might have to deeply discount products just to make space. Retailers might also run into issues with increasing carrying costs based on the cost of storage space. In either case, having too much inventory can hurt your organization. On the other hand, having issues with too little inventory when demand surges may lead to missed sales and harm to your reputation. Think about it, if customers can’t find an item they came to your store to find they will likely look elsewhere.
To deal with the issue of accurately balancing your warehouse an inventory management system could help. With an inventory management system your inventory can be more accurately predicted, which, in turn, means your stock levels will have enough products at the right times.
Strategies for Balanced Inventory Management
Inventory management systems help track warehouse resources through using barcode scanning technology that will help your business gather and extrapolate data regarding the operations of your warehouse. Your business could access more accurate inventory levels, transaction history, and product information. An inventory management system can automatically perform calculations of the data gathered so you can generate reports regarding product demand, sales, and forecasting. Which will help more accurately predict when demand rises and falls at a given sales period. The inventory management system will also help track the entire movement from materials to finished goods throughout the supply chain.
Modifying warehouse layout may also help improve balancing inventory. You may invest in better inventory storage to increase warehouse space and more accurately and easily place materials in their designated spot. A third-party logistics (3PLs) company could also help with inventory management. Predicting customer demand is not always easy, especially during times of disruption such as natural disasters or transportation delays. If you are interested in learning more tips for balancing inventory check out the accompanying resource below.
Infographic created by WSI, an eCommerce fulfillment company