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Last updated on 2024年7月2日

How do you handle unexpected increases in inventory volume without expanding storage space?

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When your inventory volume spikes unexpectedly, it can feel like you're playing a high-stakes game of Tetris with your storage space. You might find yourself asking how you can accommodate these new assets without knocking down walls or leasing new warehouses. Luckily, with some strategic inventory management, you can handle this increase efficiently. By optimizing your existing space and implementing some clever techniques, you can keep your operations running smoothly without the need for expansion.

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Dicky Saputra

scmguide.com | Supply Chain Manager | Production Planning & Inventory Control | Warehousing | Logistics
Hepi Dwi Efendi

SCM | Logistic | Warehouse | Inventory management

1 Optimize Layout

Efficiently utilizing your current storage layout is crucial when dealing with an influx of inventory. Start by reassessing your space, looking for areas that are underutilized or could be better organized. Consider rearranging shelves and bins to create more room, and don't overlook vertical space – stacking up can significantly increase capacity. Also, reevaluate the placement of items; keeping high-turnover products easily accessible can streamline picking and packing processes, which helps in managing increased inventory without needing extra space.

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Fabrice AKOAKOU

SUPPLY CHAIN AND LOGISTICS MANAGER
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Réorganiser le magasin Identifier les produits à faible taux de rotation Penser à utiliser le cross docking les produits sont directement livré aux clients Penser à utiliser aussi une plateforme logistique,qui est un lieu de transit des produits.

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2 Improve Processes

Streamlining your inventory processes can make a substantial difference when space is at a premium. Implementing just-in-time (JIT) inventory methods ensures that you only have what you need when you need it, reducing excess stock. Also, consider cross-docking, which allows products to be distributed directly to customers or retail chains from the incoming freight, bypassing long-term storage. These strategies can help you manage more inventory without expanding your physical footprint.

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3 Leverage Technology

Incorporating advanced inventory management technology can be a game-changer. Use software that offers real-time tracking and forecasting to prevent overstocking and understocking. Automated tools can also suggest the most efficient organization of your inventory, enabling you to maximize every inch of your storage space. Technology not only helps in managing the physical aspect of inventory but also provides data-driven insights to predict and prepare for future increases in volume.

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4 Cycle Counting

Regular cycle counting is a proactive approach to managing unexpected inventory increases without expanding storage. By frequently auditing a portion of your inventory, you can identify discrepancies and address them immediately. This practice helps maintain accurate stock levels, ensuring that you're not holding onto unnecessary items that take up valuable space. Accurate records through cycle counting also assist in better forecasting, which is essential in optimizing storage space.

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5 Dropshipping Model

Exploring alternative inventory models like dropshipping can alleviate storage pressure. With dropshipping, products are shipped directly from the supplier to the customer, meaning you don't need to hold the items in your own storage at all. This model can be particularly useful for handling items that are large, seasonal, or see sudden spikes in demand. While it may not suit every business, dropshipping can be an effective strategy for managing inventory volumes without needing additional storage space.

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Hepi Dwi Efendi

SCM | Logistic | Warehouse | Inventory management
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This model only can implemented on trader busines not on manufacture

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6 Vendor Management

Cultivating strong relationships with your suppliers can also help manage inventory levels. Effective vendor management allows for more flexible restocking options, such as vendor-managed inventory (VMI) where suppliers monitor stock levels and replenish as needed. This collaboration can lead to improved inventory accuracy and reduced need for safety stock, thus freeing up storage space. By working closely with vendors, you can create a more responsive supply chain that adapts to increases in inventory volume efficiently.

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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?

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Dicky Saputra

scmguide.com | Supply Chain Manager | Production Planning & Inventory Control | Warehousing | Logistics
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If it's unexpected, whether you like it or not, you have to manage the utilization of existing space until inventory levels return to normal. You have to store that inventory wherever space is available, whether it's ideal or not. If you still have space and can rearrange, that's great. But if not, you have to survive with the current conditions. It may not be ideal placement, but you need to find the least risky option as a temporary solution. After that, you need to coordinate with relevant parties to determine how long this situation will last. If it becomes permanent, you'll need to propose adding more space.

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Thomas Dent, CPIM, CSCP, CPSM, CPSD

Director of Program Management
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Consignment inventory is a great option, allowing suppliers to retain ownership of stock until it's used or sold, reducing your immediate storage needs. If this option isn't viable consider a temporary leasing of offsite facilities can accommodate seasonal surges or pre-launch builds. Both methods provide flexibility and scalability without the commitment of permanent space expansion, ensuring smooth operations during peak periods.

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Hepi Dwi Efendi

SCM | Logistic | Warehouse | Inventory management
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No case inventory unexpected , all inventory should have reason, inventory make from executed planning, why inventory have been maked ? From what ? Inventory with no reason is waste peak season ..inventory planning normally is higher , without extra storage you can shipment that good early and make a consigment with the costumer

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How do you handle unexpected increases in inventory volume without expanding storage space?

1

2

3

4

5

6

7

1 Optimize Layout

2 Improve Processes

3 Leverage Technology

4 Cycle Counting

5 Dropshipping Model

6 Vendor Management

7 Here’s what else to consider

Inventory Management

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How do you handle unexpected increases in inventory volume without expanding storage space?

1

2

3

4

5

6

7

1 Optimize Layout

2 Improve Processes

3 Leverage Technology

4 Cycle Counting

5 Dropshipping Model

6 Vendor Management

7 Here’s what else to consider

Inventory Management

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