02.02.2023 09:30

4 critical inventory management strategies

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Here are just four stock management approaches supply chain leaders and stock supervisors may use going forward.

1. Pay closer attention to consumer signals

Today’s leaders should pay more attention to the demands of customers than they have.

Companies successfully navigated it after the first initial setback and took their cues from the end customer.

Some e-commerce retailers are seeing a 250% increase in demand for such products, such as hand sanitizers, soaps and cold and flu medicine, Gandhi said. When it comes to these essential health needs, it is important to investigate at the inventory level, especially in areas where coronovirus cases are high.

In addition, companies should establish strong communication channels with their distribution networks so that they can share more accurate information to identify regional demand patterns.

However, businesses should question whether McKinsey & Company reports “supply-chain recovery in coronovirus time – the demand signal they are getting from their end customers in the short and medium term as planned for now and for the future” Is realistic. ” ”

“The demand planning team, using its industry experience and available analytical tools, must be able to obtain a reliable demand signal to determine the required supply – resulting in an integrated sales and operations planning process to be discussed and agreed upon, “The authors noted.

2. Focus on data

Because inventory management can be so complex, prioritizing data is an important inventory management strategy for virtually every company.

Take the example of Direct Relief, a non-profit, humanitarian aid organization based in Santa Barbara, California, that distributes life-saving medical resources to doctors and nurses worldwide for free.

Therefore, Qlik developed a supply chain application to provide valuable insights into areas, counties, and personal health systems with a need for masks, gloves, gowns, intensive care unit medications and more.

3. Diversify the supplier network

Organizations better prepared to withstand the outbreak of Convue-19 or any epidemic are those that are able to quickly find alternative suppliers to keep operations running. A management consulting firm in New York City.

The lesson learned is that the businesses which have built-in levels of redundancy and are not just-in-time-optimized in regards to inventory are far better positioned to meet client demand, ” he explained.

“Flexibility concerning the capacity to reposition or possess a nimble network which will enable organizations to respond appropriately is required,” Shrewsbury said.

“Even though cost and speed to function remain significant, supply chain flexibility and endurance have demonstrated to be crucial differentiators.”

4. Focus on inventory accuracy

Another crucial inventory management approach is knowing what goods are available.

Organizations that do not have good stock management procedures and accessibility to exact numbers will probably find themselves unable to keep up with demand in certain categories or using an oversupply of things that clients are suddenly less curious about.

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