Inventory Optimization Pieces that Disable Your Success
Inventory Optimization: Balance is Key for Success
How can you ensure the highest levels of success? Merchandisers and Buyers are executing promotions, product assortment changes, and new product roll-out events throughout the year. Those events affect the flow of products into your DCs and stores. They can also affect vendor fill rates and lead time performance. The volume of products purchased from a vendor also changes with those events. You will lose margin and sales unless you monitor and adjust to those changes. Inventory optimization solutions provide value by monitoring your suppliers’ on-time performance and volumes and allowing you to make adjustments along the way.
Inventory Optimization Improves Overall Productivity and Efficiency
Inventory Optimization is a strategic part of the buying role that many companies don’t realize today. The truth is that buying that is based on accurate demand forecasting, accurate lead time forecasting, and effective balancing of acquisition and carry costs against gross margin over time delivers significantly higher gross margins, better GMROI, fewer’ exception management’ alerts, and balanced inventory levels.
Read more about inventory optimization, a Top Blog here: The Truth About Inventory Optimization Show Me The Money
On the same page with the blog, download a free inventory optimization kit.
Inventory Optimization is a strategic part of the buying role that many companies don’t realize today. The truth is that buying that is based on accurate demand forecasting, accurate lead time forecasting, and effective balancing of acquisition and carry costs against gross margin over time delivers significantly higher gross margins, better GMROI, fewer’ exception management’ alerts, and balanced inventory levels.
Inventory Optimization requires a Careful Balancing Act
Inventory Optimization requires careful balancing of the economies of scale that vendors and carriers offer against the cost of buying and holding goods at the warehouse and store levels. The balancing act needs to take place regularly on an automated basis to gain maximum benefit without having to use the square root equation in Excel!
Here’s some of the key performance pieces that inventory optimization touches on:
Inventory Optimization provides Real World Results
Optimization is a powerful tool for wholesalers and retailers. It provides lower inventory levels and lowers product costs while supporting higher customer satisfaction and growing profits. By balancing all of the cost factors while understanding vendor performance and customer demand, optimization is a powerful tool for today’s forward-thinking retailers.
How Do You Combine and Analyze all the Inventory Optimization Data and Also Make It Easily Visible?
You need a good software solution to manage the data and math; this is not the place for Excel. You also need a clean, simple way to display the results in an effective format. Visit our website to learn more about managing your Inventory Optimization pieces. You can also contact us to help you find a balanced solution for your business’ inventory challenges. We’ll help you ‘Tighten the Links in Your Chain™.’
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Stuart graduated from Auburn University, with bachelor of science in business administration.
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