Retailer's Guide: How to know that it's time to transform inventory management processes
Having a strong grasp of inventory management is vital amidst ever-changing retail market dynamics and consumer preferences. If your existing system falls short, it may lead to "dead" stock, supply disruptions, unsatisfactory results of promotional campaigns, and other problems. Discover the keys to effective inventory management to navigate retail market shifts successfully.
This practical guide helps retail category managers identify hidden inefficiencies in their inventory management and understand when it's time to move beyond spreadsheets.
10 minutes
Reading time
English
Language
Format
Reasons to reorganize your inventory management system:
Inventory management is one of the pillars of a successful retail operation.No matter what tools you employ for inventory management in your retail chain – be it a specialized system, ERP, or even Excel – the need for changes may arise eventually. The shortcomings of the existing system invariably lead to some of the following issues:
- overstocks with high carrying costs;
- frequent out-of-stocks leading to customer dissatisfaction;
- low inventory turnover rate;- unprofitable promotional campaigns;
- supply chain disruptions.
9 Key Signs It's Time to Transform Your Inventory Management Processes:
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Unsatisfactory inventory turnover rate
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Shelves often lack certain products
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Unsatisfying promotional campaigns
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LOW quality of interaction with suppliers
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Unbalanced inventory levels
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You can’t track and analyze inventory management kpis
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The deferred payment period is shorter than inventory turnover in days
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Time-consuming operational processes
