Written by Jake | September 27, 2021
Inventory planning software is a very beneficial tool. It uses the process of determining the best methods of keeping inventory to ensure your levels of the product are accurate. Effective inventory forecasting software has positive results that trickle down throughout your entire supply chain.
Different companies handle their inventory planning in a variety of ways. Evidence of this can be seen almost everywhere you go. You’ve probably been to Walmart before and found that the item you hoped to buy isn’t in stock. On the other hand, sometimes there are clearance racks full of the same t-shirt. There are instances of poor supply chain management almost everywhere.
Having powerful inventory forecasting software benefits your business in more ways than just having stocked shelves. If you think about the example of Walmart being out of stock of something in the store, there’s a lot more to that situation than what meets the eye. Not only do they miss out on the sale of the product, but they lose money in other areas.
Often, warehouses are full of product that is ‘out of stock’ in the actual store. Ineffective or lack of warehouse inventory management software only hurts business. Having a warehouse full of product that isn’t being sold doesn’t do Walmart any good. Additionally, customers often find what they’re looking for elsewhere. In this case, Walmart would miss out on this sale and more. Consumers tend to stick to stores that have been reliable in their past experiences.
As you can see, it’s a good idea to have a method of keeping accurate inventory. Inventory levels can affect revenue, warehouse operations, employment hours, consumer loyalty, and much more.
Due to the vast number of businesses all around, there are constantly changes in supply chain events and operations.
There is currently a shortage in resin production. Resin is used in the manufacturing of many different products. Some of these products are flooring, countertops, car parts, heart valves, plastic straws, and adhesives. Obviously, a shortage of resin presents a variety of additional issues.
Survey data has shown 60% of manufacturers have experienced resin shortages. Resin production is a byproduct of oil refinement. Political pressures, regional storms, and other factors affect oil drilling and refinement processes. For example, in Louisiana, Hurricane Ida recently took a toll on refinery capacity. The hurricane was a category 4, and the aftermath halted the refining of about 2.2 million barrels of oil a day.
Another current issue is the shortage of semiconductor chips. These chips are used in laptops and other computer products. As you know, computers are one of the most used items worldwide. Production times have been greatly extended, and people are scrambling to readjust their operations.
The past year has already presented unique challenges to the IT industry. They’ve handled more people working remotely and solely on technology. Now, the industry is struggling to present quick solutions and alternatives to products that have been tried and utilized for years. New products often present an entirely new onslaught of issues, so the situation they’re in isn’t a great place to be.
There will always continue to be exciting situations in the supply chain. Your company needs to be prepared to meet circumstances that can often be life or death in the survival of a business. The good news is there’s inventory management software for small to large businesses.
How would it be to never have to face stockout or overstock situations again? Your company is sure to be strengthened as you implement inventory planning software into your operations. You’ll be aware of the demand that’s up ahead, and your inventory levels will be able to remain accurate and prepared to meet that demand. Your warehouse will operate much more effectively, and you’ll know exactly the amount of labor you need to handle your inventory. Consequently, your revenue will increase as unnecessary spending is greatly reduced. Additionally, the experiences had by your customers will strengthen your business. Your customers will rely on your business to have what they want, and they’ll return to you in the future.
The above situations are nothing but beneficial to your company. If you aren’t using inventory planning software right now, that needs to change! Find the solution that’s the best for your company, and you’ll soon notice the improvements that are sure to come!
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