Have the product in the right place, at the right time and in the right amount. This is one of the main concerns of retailers.
The entire sector is clear that controlling it is essential to avoid problems such as overstock or running short of merchandise, avoiding meeting customer expectations.
The concept is simple and easy to understand, but achieving it is complex.
If stock optimization is essential for any link in the supply chain, that is retail sales. When a customer goes to the point of sale -whether physical or online- with the decision to make a purchase, it is critical for the seller that the transaction materializes. In this context, high availability and service level are vital. If the customer does not find what he is looking for in the store, he will not hesitate to go to the competition and the sale will be lost.
KEY ACTIONS TO OPTIMIZE AND CONTROL THE STOCK
· Demand analysis and forecast: Carrying out an exhaustive study of historical demand and using forecasting techniques to predict future demand allows adjusting stock levels according to market needs.
· Supplier management: Maintaining fluid communication with suppliers by establishing clear agreements regarding delivery times, purchase volumes and replenishment conditions helps to avoid delays in inventory replenishment.
· Establish minimum and maximum stock levels: Define the minimum and maximum stock levels for each product based on demand and replacement time. These levels help avoid running out of merchandise or having unnecessary overstocks.
· Track key performance indicators (KPIs): Using KPIs such as inventory turnover, replenishment time, and margin of safety to assess inventory management performance provide valuable information for making better decisions.
· Strategic promotions and discounts: Use promotions and discounts strategically to stimulate demand and avoid stock accumulation with proper planning based on seasonality, market trends and data analysis.
In several previous articles we refer to the importance of using display stands, among many other functions and utilities, as a promotional channel at the point of sale to speed up product rotation, being an essential claim to increase sales.
· Constant monitoring and review: Maintain constant monitoring of stock levels and carry out periodic reviews to identify possible deviations, making adjustments according to changes in demand, being flexible to adapt to market fluctuations.
· Collaboration with other departments: Promote collaboration between the different departments of the company, such as sales, marketing and logistics. Share relevant information about demand, promotions and marketing campaigns so that everyone is aligned and can adjust inventory efficiently.
Obviously, in order to properly carry out these tasks, it is essential to have an inventory management system and use the most accurate software or management system possible to have good control of stocks.
These tools allow you to track sales, incoming and outgoing merchandise in real time, and generate detailed reports. These technological solutions are the most effective mechanism to reach the objective.
Currently, at a time of omnichannel purchases coupled with great uncertainties regarding changes in consumer behavior, adequately carrying out all the aforementioned points to optimally manage stock becomes a critical issue.
THE IMPORTANCE OF TECHNOLOGY IN APPROPRIATE DECISION-MAKING BASED ON DATA
Proceeding with the previous points with great technological support is fundamental and the only way to carry it out efficiently, but this by itself is not enough since having an exhaustive source of data on the behavior of stocks without a correct interpretation that accompanies is of little use, leading to inefficiencies and economic losses.
In the current era, adopting a more technological and data-driven approach not only in the control that provides us with information but also in decision making about demand forecasts and inventory planning can not only improve efficiency, but also improve the customer experience and increase profits in the short term, surely in a much shorter period of time than you think.
Many retailers are somewhat afraid to adopt new technologies for fear of changing existing processes, but having complete visibility into operations that allows for real-time analysis of information while providing reliable predictions allows for agile, data-based decisions that address current needs as well as plan strategically for the long term.
Competition in the market is increasingly fierce, and consumers expect a smooth shopping experience and constant product availability. Technology allows us to make data-driven decisions, allowing us to quickly respond to market trends and adjust strategies accordingly.
The entire sector is clear that controlling it is essential to avoid problems such as overstock or running short of merchandise, avoiding meeting customer expectations.
The concept is simple and easy to understand, but achieving it is complex.
If stock optimization is essential for any link in the supply chain, that is retail sales. When a customer goes to the point of sale -whether physical or online- with the decision to make a purchase, it is critical for the seller that the transaction materializes. In this context, high availability and service level are vital. If the customer does not find what he is looking for in the store, he will not hesitate to go to the competition and the sale will be lost.
KEY ACTIONS TO OPTIMIZE AND CONTROL THE STOCK
· Demand analysis and forecast: Carrying out an exhaustive study of historical demand and using forecasting techniques to predict future demand allows adjusting stock levels according to market needs.
· Supplier management: Maintaining fluid communication with suppliers by establishing clear agreements regarding delivery times, purchase volumes and replenishment conditions helps to avoid delays in inventory replenishment.
· Establish minimum and maximum stock levels: Define the minimum and maximum stock levels for each product based on demand and replacement time. These levels help avoid running out of merchandise or having unnecessary overstocks.
· Track key performance indicators (KPIs): Using KPIs such as inventory turnover, replenishment time, and margin of safety to assess inventory management performance provide valuable information for making better decisions.
· Strategic promotions and discounts: Use promotions and discounts strategically to stimulate demand and avoid stock accumulation with proper planning based on seasonality, market trends and data analysis.
In several previous articles we refer to the importance of using display stands, among many other functions and utilities, as a promotional channel at the point of sale to speed up product rotation, being an essential claim to increase sales.
· Constant monitoring and review: Maintain constant monitoring of stock levels and carry out periodic reviews to identify possible deviations, making adjustments according to changes in demand, being flexible to adapt to market fluctuations.
· Collaboration with other departments: Promote collaboration between the different departments of the company, such as sales, marketing and logistics. Share relevant information about demand, promotions and marketing campaigns so that everyone is aligned and can adjust inventory efficiently.
Obviously, in order to properly carry out these tasks, it is essential to have an inventory management system and use the most accurate software or management system possible to have good control of stocks.
These tools allow you to track sales, incoming and outgoing merchandise in real time, and generate detailed reports. These technological solutions are the most effective mechanism to reach the objective.
Currently, at a time of omnichannel purchases coupled with great uncertainties regarding changes in consumer behavior, adequately carrying out all the aforementioned points to optimally manage stock becomes a critical issue.
THE IMPORTANCE OF TECHNOLOGY IN APPROPRIATE DECISION-MAKING BASED ON DATA
Proceeding with the previous points with great technological support is fundamental and the only way to carry it out efficiently, but this by itself is not enough since having an exhaustive source of data on the behavior of stocks without a correct interpretation that accompanies is of little use, leading to inefficiencies and economic losses.
In the current era, adopting a more technological and data-driven approach not only in the control that provides us with information but also in decision making about demand forecasts and inventory planning can not only improve efficiency, but also improve the customer experience and increase profits in the short term, surely in a much shorter period of time than you think.
Many retailers are somewhat afraid to adopt new technologies for fear of changing existing processes, but having complete visibility into operations that allows for real-time analysis of information while providing reliable predictions allows for agile, data-based decisions that address current needs as well as plan strategically for the long term.
Competition in the market is increasingly fierce, and consumers expect a smooth shopping experience and constant product availability. Technology allows us to make data-driven decisions, allowing us to quickly respond to market trends and adjust strategies accordingly.