In order to survive and thrive in today's competitive marketplace you need to focus on managing your inventory as though the future of your business depends on it. (Because it does.)
A good place to start is by investing in the right demand planning system. Yes it will cost money, and yes it will take some effort to set it up. But the potential benefits are worth it. Industry consultant Jon Schreibfeder indicates that the payback for the total cost and effort of implementing this type of inventory management software can be obtained in just a few months. And he's often seen reductions in inventory value of more than 35% over the course of a few months, while increasing customer service levels at the same time.
Not sure if you need a demand planning system? Here are 7 signs that you do:
You have too much inventory, but still experience stock-outs of key items.
Even though inventory levels are too high, you still struggle with identifying the over-stocked items.
Too many hours are spent reviewing items for replenishment.
You spend too much time identifying appropriate replenishment.
Your system does not consider vendor price breaks and vendor targets that make the most sense for your situation when it makes purchase recommendations.
You have to manually manage sporadic, erratic, and slow moving items.
Your system continues to use the same forecast even after you've over-consumed it.
Do any of these indicators sound familiar? Take a good, long look in the mirror. Or better yet in your warehouse. What's in there? If you don't have what your customers want, they'll go elsewhere. And if you have excess inventory your carrying costs can consume your profits.
Find out more by contacting Solution Systems.