You're running out of storage space for critical items. How will you prevent stockouts?

1. Use Dynamic Slotting: Adjust item locations based on demand shifts, moving high-demand items to prime spots during peak seasons and relocating them when demand slows, ensuring continuous optimization. 2. Lean Warehousing: Apply Lean principles to reduce wasted space by eliminating non-essential storage areas and organizing based on workflow efficiency, improving overall space utilization. 3. Incorporate Pick Paths: Designate optimized pick paths in your layout that minimize travel distance for workers, reducing time spent navigating the warehouse and speeding up order fulfillment.

In my experience, 5s inventory strategy is perfect to optimise inventory, space and the entire process. As inventory is involved in receiving and dispatching and checking the balance and then space available and the safety of the entire place 5s is very essential. It starts by 1. sorting items in their category, down to 2.setting the sorted items in a way that the SKU will be clearly different though they are packed together, 3.Shining is a strategy used to arrange SKU so that one dont need to rearrange or disposition the items to see their information,in retail shops,it's also includes positioning items in a way that similar items stay close to one another eg toothbrush, toothpaste etc.4. Standardization by making it a process 5.Sustain it

For instance, one flavor would have specific location. But if the bins are not enough, two or three flavors can be located in one bin. Each flavor however can be separated by a marker or a card.

To prevent stockouts when running out of storage space, first analyze demand patterns to prioritize high-demand items. Next, implement a just-in-time (JIT) inventory system to reduce overstock while meeting needs. Explore external storage options or partnerships with third-party logistics providers for overflow. Use real-time inventory tracking to quickly replenish fast-moving items. Lastly, streamline your product range by phasing out low-velocity stock to free up space for critical items.

Categorise inventory. Runners-Repeaters-Strangers. How much space is being taken up by slower moving items. Move them out first or look to consolidate where they are being held. Are they in any prime areas in the warehouse that can be freed up for faster moving products? Review order patterns. Are you buying 3 months of stock at one time? Can you look to reduce the buying frequency to fortnightly or monthly quantities (based on vendor minimums and pricing)? This will reduce overall inventory being held and smooth storage requirements in the warehouse.

One time at work, we didn't have enough space to fulfil demand from 12 vessels. Strategies that helped us was getting materials just when they're needed so you don't have to store them and occupy space. Another one is SLA Service Level Agreement a Procurement strategy that activates a vendor any time products and services are needed, this also encourages a logistics optimisation called transloading or DAP incoterms depending on the agreement levels. Thirdly when you can secure a blanket order from a vendor, supplies could be as simple as a text message or a phone call or one line email. These are Just in time strategies to apply to optimise your inventory when space becomes a problem.

I agree accurate demand forecast is a must, but if COVID-19 helped us learn something about demand forecasting is that the old ways using only history, seasonal trends, promotional causals, halo and cannibalization, etc. is not working by itself. The whole world turned upside down and consumer behaviors from pre-COVID-19 are not applicable anymore. In our new world we need to add many additional attributes and quick learnings. That is why almost all of today’s forecasting systems are adding AI models (aka machine learning) to aid the existing models. Also critical is to setup the correct exception review workflow for demand planners so they focus on truly exceptions the system cannot forecast properly and manually intervene.

Demand forcasting is to be able to tell the amount of inventory needed to fulfil orders/requirements. 1.Report of old usage helps alot, 2.Consumption rate helps if calculated well, 3.Economic order quantity EOQ of an organisation also determine the quantity to order at ones. It has something to do with the organisation financial capacities. 4.Nature of operations/business activities affects forecasting etc The more accurate these factors are considered, the more correct the forecast will be.