Saturday, July 2, 2011

5 Common Pitfalls of Inventory Replenishment

There when purchasing warehouse inventory is lean, there is a saying in sales is a great job. When the warehouse is overstocked, there should be a problem with the purchase. This world we live in.

Running a profitable company in the economy of the list as lean as it is about how to increase sales that much. But as everyone knows, that's easier said than done. Demand fluctuations, supplier issues and tighten the purse, keep a list with the right balance is difficult to say the least.

Unfortunately, there is no magic bullet that will take your list perfect all the time. However, the first step in fixing any problem is to identify its causes. In this article, we have 5 of the most common mistakes buyers make when placing orders will talk about.

Average blind

Someone once told me that you and a fire in your feet, your head in the freezer, on average, their body temperature is about right ... But you certainly would not be comfortable.The average is based in almost every order, and they should be. However, there are two reasons why it can be dangerous.

First, we all know that the products are large unexplained spikes or drops in demand for a period can experience.Your average order amounts to a major change in the future will lead to a dramatic change. If this spike or dip in demand does not continue in the future, you either have way too much stock or bad ... Not be enough.

In addition, the buyer is aware of just how much those items are fluctuations in demand, there is no way they possibly can to place the order when it is safety stock. A product is very stable, very low safety stock is required, while another is very uncertain and requires much more. If your buyer is a straight average, they will never know it. His head is in the freezer ... Feet to the fire.

Lead Time Forecast

So you're all set! A good, solid average demand for your product is received. Now you place your order with confidence, right? Well, not quite. You still have a slight issue with suppliers. How reliable are your suppliers when they tell you they order a 14 - day lead time? If you're like most of our customers, our suppliers are probably not very reliable. Just like the demand for your product from one period to the next can vary, so too can the supplier lead times.

Sea of ​​the West Bank, one of our customers on imported tires. They told their suppliers that a 6 - month lead time on all of the tires on the plan, and they took his words to the supplier.They are an additional 4 months of safety stock was

In contrast, another customer where a supplier is a 14 - day lead time as quoted. When they saw the real PO 30 days, the average actual lead time. They do not understand why they can be kept running out of stock items.

If you take your words for your suppliers, your inventory levels and fill rates can have a very detrimental effect.

Weather

Now that we have uncovered the average risk and lead times have a firm grasp on your list should start a lot more sense. But look at some more pieces.

Next, it is important that you identify products that show a seasonal trend. On the surface, the weather is a simple concept. In the sense that more winter chicken soup, and will sell in the summer makes Gatorade. Challenge those products that comes with are not so clear.

Across the country, working in the market where the Pepto-Bismol, Vienna sausages, and even a specific seasons found in products such as condoms. And identify these items when they peak (or off-season experience) by knowing you and when required to account for the increase in demand can be reduced.


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