Inventory optimisation and strategy

Are your customer expectations accurately factored into your demand planning and distribution strategy? If not, this is the very first thing to examine. We suggest also evaluating whether there is effective cross-collaboration between departments such as ensuring supply chain managers are aware when marketing departments are running promotions.

Important to remember:

1. There is no standardised approach:
   Recognise that inventory planning and strategies vary between businesses, industries and models. It is essential to develop a tailored approach that considers your specific business needs and customer expectations.
2. Prioritise inventory management:
   Optimal inventory management is crucial to meet customer expectations. Having the right product and quantity in the right location increases sales and reduces costs.
3. Optimise import processes:
   If your business relies on imported goods, implement strategies like port splitting containers to send inventory directly to the locations where it is needed. This approach reduces expensive inter-business transfer costs and shortens the time it takes for products to reach customers.

Optimal inventory volume requires thoughtful consideration of several factors. AI and predictive analysis can enhance forecast accuracy, while regular reviews of your demand plan and safety stock policies help ensure accuracy and adequacy. Assessing the cost of stock-outs and ensuring alignment between marketing campaigns and demand planning can also help avoid inventory-related issues.