Balance Supply and Demand and Optimize Inventory with Strategic Plans

IMPLEMENT JUST-IN-TIME PURCHASING AND PRODUCTION STRATEGIES FOR IMPROVED PROFITS

Supply chain disruptions and inventory planning issues can mean the difference between large profits or significant losses. We are all familiar with the shortage of face masks and hand sanitizers during the global pandemic. Years later, many companies still have warehouses full of these items that no one wants or needs. This is just one of many historic examples of supply shortages and overstock. Recent supply chain shortages span industries such as automotive products, baby formula, varied pharmaceuticals, and high-demand consumer electronics. Conversely, several major retailers recently announced serious overstock issues due to poor demand planning or unmonitored automated purchasing.

To compound matters, consumers and business buyers have more options today than ever before. Customers expect the Amazon experience – fast shipments, accurate order fulfillment, and always-on hand stock. A historic Harvard Business Review article noted that “depending on the product category, 7% to 25% of consumers faced with a stock-out will continue shopping but won’t buy a substitute for their desired item at the store; 21% to 43% will actually go to another store to purchase the item.”1 A recent Zendesk survey indicates that more than half of customers will switch to a competitor if they have a single negative experience.