How can you manage inventory during a retail crisis to ensure products are available?

1 Assess your inventory situation

The first step is to assess your current inventory situation and determine how much stock you have, where it is located, and how fast it is moving. You can use inventory management software or tools to track your inventory levels, turnover rates, and sales trends. You should also monitor your suppliers and distributors and communicate with them regularly to understand their availability and delivery times. This will help you identify any potential gaps or risks in your inventory flow and plan accordingly.

2 Adjust your inventory strategy

The next step is to adjust your inventory strategy based on your assessment and the nature of the retail crisis. You may need to increase or decrease your inventory levels, reorder frequency, or safety stock depending on the demand and supply conditions. For example, if you are facing a sudden surge in demand for certain products, you may need to order more frequently and keep more buffer stock. On the other hand, if you are facing a drop in demand or a disruption in supply, you may need to reduce your inventory levels and order less often. You should also consider diversifying your suppliers or sourcing alternatives to mitigate the risk of shortages.

3 Optimize your inventory allocation

The third step is to optimize your inventory allocation across your sales channels and locations. You should allocate your inventory based on the demand and profitability of each channel and location, as well as the cost and speed of transportation. You can use data analytics and forecasting tools to predict the demand patterns and customer preferences for different products and regions. You should also leverage your online and offline channels to balance your inventory and offer more options to your customers. For example, you can use your website or app to show your inventory availability and location, offer click-and-collect or delivery services, or redirect customers to other stores or warehouses.

4 Manage your inventory performance

The fourth step is to manage your inventory performance and monitor your key metrics and indicators. You should measure your inventory performance using metrics such as inventory turnover, sell-through rate, gross margin return on investment, and stockout rate. These metrics will help you evaluate how efficiently and effectively you are managing your inventory and how it affects your sales and profitability. You should also track your inventory accuracy and quality and conduct regular audits and inspections to ensure your inventory is in good condition and matches your records.

5 Communicate with your stakeholders

The fifth step is to communicate with your stakeholders and keep them informed of your inventory situation and actions. Your stakeholders include your customers, employees, suppliers, distributors, and partners. You should communicate with them clearly, honestly, and frequently to maintain their trust and loyalty. You should also listen to their feedback and suggestions and respond to their queries and concerns. Communication is essential to ensure smooth coordination and collaboration among your stakeholders and to manage their expectations and satisfaction.

6 Learn and improve

The sixth step is to learn and improve from your inventory management experience during the retail crisis and prepare for the future. You should review your inventory performance and identify your strengths and weaknesses, as well as the opportunities and threats. You should also analyze the causes and effects of the retail crisis and how it impacted your inventory and business. You should then use your insights and lessons learned to improve your inventory management processes, systems, and skills and to develop contingency plans and scenarios for potential future crises.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?