What are the key factors in managing inventory control of finished goods?

Utilize historical data and market trends for demand forecasting. Collaborate with sales and marketing to gain insights on promotions. Maintain safety stock to counter demand fluctuations and supply chain disruptions. Employ efficient ordering systems like EOQ with MRP. Build supplier relationships, streamlining processes, and minimizing lead times. Develop a balanced production schedule like JIT, emphasizing efficiency while avoiding overproduction. Monitor inventory turnover. Use ERP to Leverage data analytics for trend insights and refined demand forecasts. Embrace continuous improvement by reviewing and updating inventory processes. Foster collaboration between departments,sharing information for coordinated responses to market changes.

Establish the performance goals and allocate resources. Preparing for the sales, and promotion planning. Keep all inventory data stores VS WH, per day sales VS available STKs and damage and agings data for the inventory accuracy.

Accurate demand forecasting helps determine the right inventory levels. Understand seasonal trends, market fluctuations, and customer preferences. You can use Excel to do most of the analysis if you can't get hold of time series analysis or regression models.

Key factors in managing inventory control of finished goods include demand forecasting, accurate tracking systems, efficient order fulfillment processes, optimal reorder points, and proactive risk management to address potential disruptions in the supply chain. #InventoryManagement #SupplyChain #Operations

Financial Factor. It is obvious that the most important factor is money. ... Market Demand. Understanding market demand is very important for effective inventory management. ... Inventory Theft. ... Lead Time. ... Forecast Quality & Quantity. ... Product Types. ... Vendors & Manufacturers. Etc.

Monitor turnover ratio (sales divided by average inventory). High turnover indicates efficient use of inventory. This will indeed help to reduce loss and maximize profits. Also, you can use this method to know the overstocked products or otherwise.

Use inventory management software for real-time tracking, order processing, and reporting. I found SAP very helpful in this aspect, you can customize daily report through SAP for inventory tracking

Classify finished goods based on value (A, B, C). Focus on managing high-value finished goods more closely. Efficiently manage lead times from suppliers. Longer lead times may require higher safety stock.

Set a reorder point based on lead time and demand variability. Reorder when inventory reaches this threshold to avoid stockouts. Finally, maintain safety stock to handle unexpected demand spikes or supply disruptions. It acts as a buffer against stockouts.