A lot of inventory management advice will set you up for failure.
Here are 5 things you should ignore if you are getting started
๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ญ.
Always maintain high levels of safety stock to avoid stockouts.
๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:
Safety stock is important.
But maintaining high levels of it can actually lead to excess inventory. Plus increased carrying costs.
Instead, consider implementing inventory strategies to cut excess inventory and improve efficiency.
๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ฎ.
Keep a wide range of products in stock to please customer demand.
๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:
Itโs important to offer a variety of products.
But, maintaining a wide range of stock can actually lead to
โ excess inventory and
โ decreased efficiency.
Consider identifying and
โ focusing on โheadโ products that drive the majority of sales, and
โ phase out slow-moving โtailโ products.
๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ฏ.
Always accept large volume discounts from suppliers.
๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:
Volume discounts can be tempting.
But accepting large discounts can actually lead to
โ overstocking and
โ decreased profitability.
Consider
โ negotiating smaller volume discounts and
โ implementing inventory strategies to cut excess inventory and improve efficiency.
๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ฐ.
Always maintain the same level of safety stock for all products.
๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:
Base Safety stock levels on specific characteristics of each product, such as
โ demand variability and
โ lead time.
Maintaining the same level of safety stock for all products can lead to
โ excess inventory and
โ decreased efficiency.
Consider using tools to
โ react to demand signals and
โ determine appropriate safety stock levels for each product.
๐ ๐ถ๐๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฝ๐๐ถ๐ผ๐ป ๐ฑ.
Make sure to have all the necessary inventory in place before the launch.
๐๐ผ ๐๐ต๐ถ๐ ๐ถ๐ป๐๐๐ฒ๐ฎ๐ฑ:
Itโs important to have enough inventory to meet demand.
But, having too much inventory can tie up valuable resources and increase the risk of waste.
Itโs better to have a plan in place to
โ replenish any inventory that runs low, rather than
โ trying to expect every possible demand scenario and stock.
This will help you avoid the risk of overstocking and allow you to be more agile in response to changing demand.