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Inventory optimization seems easy to achieve At first glance, it's simply a matter of ordering the right amount of product at the right time. “When” and “how much” are the two key questions. The “when” is determined by the cost of inventory versus the risk of running out of stock. And “how much” is defined by inventory costs versus ordering costs. Simple? Not at all. Optimizing inventory management can look different depending on your perspective. Finance, Sales, IT, Purchasing, Logistics will all have a unique perspective on the right way to optimize inventory. The finance department may want to take into account capital costs and ensure that product obsolescence is taken into consideration. The sales department wants good margins and satisfied customers. And what about your computer equipment? They probably just want peace of mind and a good night's sleep. So, who takes responsibility? Many companies don't know the answer.
Consequently, they find themselves with an inventory situation that is not only not optimized, but is completely unbalanced. What is inventory optimization? Customer behavior is constantly changing. The assortments evolve. Demand fluctuates. And the supply is never stable. This means that it is essential to adjust inventory levels to the pace of the market. If your levels don't meet your customers' expectations, you'll soon wonder where everything went wrong. It is essential to periodically stop and reevaluate the processes that must enable profitable inventory Japan Telegram Number Data management. For example. Is your inventory getting the strategic attention it deserves? Do you know what items should be stored? And because? Do you know how much of each item you need to avoid stockouts and lost sales? Do you have solid principles to keep your inventory under control? To ensure that your stock provides you with tangible competitive advantages, these are questions you can't ignore.
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The ingredients of effective inventory management “Good inventory management” ensures that the right products are available in the right inventory quantity and with the right inventory turns. Inventory Optimization Checklist Demand forecast Reliable forecasts create a reliable basis for all decisions. Whether in assortments, purchasing volume or safety stock. Historical data is often used in combination with knowledge of inventory turns , current order levels, and future sales expectations. But it is important to ask whether existing forecasting processes are up to date. Likewise, is the quality of the forecast satisfactory? Often, even with modest efforts, opportunities for improvement are quickly identified. New call-to-action Master data A company's processes are only as good as the data on which they are based. Poor data leads to poor decision making. And bad decisions result in costly overages, out-of-stocks, and angry customers.
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