July 24 2020

‘FIVE FACTORS’ - 5 ways better forecasting improves inventory management

Wholesalers and Van Sales businesses understand the need to properly predict and manage stock levels. With close margins, stock wastage or insufficient stocks to meet order demands can be extremely detrimental, directly impacting profits as well as straining customer relationships.
Warehouse / Inventory space is valuable and using every possible variable to predict, control and plan for accurate stock management is a necessity for these businesses.
Using Digital Systems to allow forecasting to be as precise as possible lets wholesalers trim off excess losses, and simultaneously grow profits. Today we broke down the 5 ways better forecasting improves inventory management for distributors, thus benefiting profits and growth.

Optimise re-order levels

Digital Systems can provide more precise data on when stocks need to be replenished. Ordering stock too early can result in a surplus, which can lead to increased wastage as well as contribute to ineffective usage of space. Equally, ordering stocks too late can result in lost profits and unfulfilled orders, which massively damages customer confidence and can reflect poorly on the business in the long-term. Finding this balance can be easy when using the right data and making accurate predictions.

Always meet order/customer expectations

To elaborate on optimised re-order levels, predicting when stock needs to be replenished in the warehouse means you can always fulfil customer orders, meet expectations and retain customer loyalty. An intuitive inventory management system will use data to work out when customers usually place and expect orders, combined with stock levels to ensure you achieve better control over your stocks while reducing wastage and meeting order requirements.

Manage inventory/warehouse space effectively

Effective management of space in your warehouses helps you to stay organised, reducing picking and packing times as well as reducing the risk of wrong orders or stock miscounts.
It gives you a better understanding of your lead time

Having a better understanding of the timing between re-ordering from suppliers, delivery to your warehouse and the time taken to complete orders to your own customers means you can make more accurate decisions concerning these processes as a whole. This means you can move forward as a more responsive business.

Reduce carrying costs

For wholesalers, holding costs for inventory can be pricey. With larger inventories, it is important to separate the necessary volume from the surplus stocks that are included. Refining this process through appropriate inventory management can help reduce costs alongside all of the other benefits detailed above.
For more Software advice, Industry news and updates, yoy can go to our blog.
Alternatively, follow us on Social Media below:
Facebook
Twitter
Linkedin
Youtube
Medium