Tag Archive for: Inventory Issues


5 Scary Changes to Your Inventory Replenishment —Which Do You Make?

You are scared of change, so are most people. It is a basic human emotion that we all fear change. When faced with the need for change, reality sets in and you’re reminded that the world changes constantly. A business that doesn’t change is doomed to fail. This sounds harsh but history teaches us that life is all about change. You either change, adapt (like a 1/2 change), or die. The irony in that statement is that often companies will change people but fail to change processes or systems, expecting things to improve. How long did your foot stay stuck in the mud? Until you pulled it out, you didn’t go get a different person’s leg. The same with supply chains, until business and people are willing to make changes, expect the same results.

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Two Expensive Inventory Issues: Which Do You Fix First?

Do you know the root causes of the four common inventory issues: out of stock, overstock, bumpy cash flow, and lost sales? Your goal is to have the right products in the right quantity at the right locations just in time to sell with terms from your supplier that allow you to use your money again before you pay the supplier. No one would argue the success of this strategy, so where is all the grief? In truth, there are four root causes of the most common inventory issues. Unfortunately, many companies fail to identify and act on these root causes, resulting in lost profits in the form of lost sales and higher operating costs.

  • Out of Stocks – Supply Chain Issues
  • Overstocks – Operation Problems
  • Bumpy Cash Flow – Planning & Finance
  • Lost Sales – Customer Service Issues
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