Beginning of Superior Inventory Management

When retailers seek help with issues relating to inventory management, they are usually concerned about an increasing level of out-of-stocks, which are leading to lost sales and customer service complaints, or over-stocks

Mumbai, IND, India (prHWY.com) December 24, 2012 - Which are resulting in slow inventory turnover and a buildup of dead inventory. In fact, out-of-stocks and over-stocks are actually the flip side of the same inventory management coin. Any effective initiative to resolve these issues must address the core structural causes of these inventory management problems. Superior inventory management begins with timely, accurate, detailed demand forecasts.

It is critical to differentiate between demand planning and purchase planning. Demand planning is the sales plan from which inventory planning, purchase planning and replenishment parameters are built. It is impossible to plan inventory and purchasing activities or build replenishment parameters without a detailed forecast of what will be sold

How much will be sold, when it will be sold, the channels it will be sold through, and who the ultimate customers will be. And yet, all too frequently replenishment parameters are rolled over, existing purchasing patterns continue, and inventory is allowed to ebb and flow as if on auto- pilot. The result is out-of-stocks and over-stocks as demand changes.

Bhaumik Rathod
Mumbai, IND
Email: bhaumikrathhod@yahoo.com
Full Article Source: Inventory Management
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Tag Words: inventory planning, inventory management

Categories: Business

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