Inventory Planning Basics Advantages, Challenges, and How to Overcome Them
By GOIS March 20, 2023
Read Time:2minsWhat Is Inventory Planning?
The inventory planning process is important part of a retail business’s asset and refers to holding stock in warehouses or stores. Likewise, it plays a critical role to supply chain management since it influences order management, inventory processes, warehouse operations, accounting, and customer satisfaction.
Managing it effectively rises having an exact quantity of goods at the right time and in the right location.
Inventory Planning Flow
The planning process consists of different steps in the lifecycle of the stock. Specifically:
Purchase Inventory: This step incorporates the order of the inventory which will be made according to the data collection.
Store Inventory: Businesses store items either in a physical store or a distribution center.
Make Use of Inventory: This step includes selling stock or using it as raw materials to manufacture goods or repair items.
Track your stock: By tracking stock you’ll get the information needed regarding what products are required and when to reorder them.
Reorder Goods: According to the data collection, a business can replenish its inventory.
Forecast: Use inventory management software that meets your company’s needs to forecast stock levels.
Inventory Planning Advantages
There are multiple benefits that an implemented inventory planning may offer to a business:
Increased Business Profit
Order Fulfillment Improvements
Keep Ahead of the Competition
Enhanced Customer Service and Satisfaction
Challenges to Face:
As mentioned above, inventory planning can assist a business with its further developing its operational and stock management processes. However, there are a few challenges that you should be aware of.
The inventory planning process may be hard to understand for inexperienced representatives. That’s because it incorporates a variety of methodology and responsibilities for those that handle it. A business should choose an order management software provider with an easy-to-use interface that may likewise demonstrate the product for better understanding to ensure minimizing human errors.
It additionally requires data access for multiple product codes and maybe multiple warehouses. The collection of these data and the creation of reports might be a tricky task. If there’s a lack of accuracy in the data collection, then this will prompt to an unsuccessful inventory forecast that will affect many business sectors.
Planning inventory correctly is affected by the collaboration of various teams and departments in a company. Specifically, successful inventory planning consists of the collaboration between the management team – which decides upon the KPIs, the accounting team, which keeps track of the stock, and the warehouse operators or project managers.
Inventory Management Planning with GOIS
Inventory planning can become an easier process while selecting the right stock management software that meets these sorts of business needs too. The choice of the ideal inventory management could appear quite difficult due to the many product options on the market but here are some features that should be provided as a minimum if one wants a complete solution
Inventory tracking in multiple locations and companies
Barcode scanning capabilities and batch number tracking
Stock, purchase, and sales reporting.
Request a demo today to see for yourself how GOIS Inventory’s easy-to-use, efficient inventory management software can make things easier for your business.
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