Facing a sudden supply chain disruption in retail, how do you decide which products to restock first?

When facing a sudden supply chain disruption in retail, prioritizing which products to restock first typically involves a strategic approach. Here are some steps to consider: Assess Demand Impact, Urgency of the product, Relation with supplier & support, Financial Impact & Opportunity loss, Lead time, Seasonal and Trend Factors. By systematically evaluating these factors, you can make informed decisions about which products to prioritize for restocking during a supply chain disruption.

In the face of supply chain disruptions, analyzing product demand is critical. Start by reviewing sales data to identify best-sellers.These high-demand items keep customers happy and cash flow steady. Consider seasonal trends and upcoming events too. One thing I've found helpful is working closely with suppliers to forecast demand and secure stock early.This reduces the risk of running out. Actually, I disagree with relying only on past sales data. Market trends and consumer behavior can shift quickly, as we saw during the pandemic. An example I've seen is a retailer who handled disruptions by diversifying suppliers and using data analytics to predict demand. This kept stock levels consistent and allowed quick responses to market changes

20% of your inventory gives you 80% of your sales. That's what you should focus on the top-sellers, and your customers will be more than happy, having found all they need the most.

Consider product profit margins carefully.Focus on high-margin items for financial flexibility during supply chain disruptions.Don’t neglect lower-margin essentials that drive foot traffic and boost sales of higher-margin goods.Balancing profitability with customer demand is crucial for a successful restocking strategy. One helpful approach is regularly reviewing profit margins and adjusting pricing strategies to maximize profitability without alienating customers. Actually,I disagree with solely prioritizing high-margin items.Ignoring lower-margin essentials can harm customer satisfaction and loyalty. An example:A retailer balanced high-margin products with essential items, keeping customers satisfied and profits stable amidst challenges

Apart from broader issues like politics, disasters, and pandemics that affect the supply chain, there are supplier-specific issues such as operational inefficiencies, distribution challenges, and limitations in human and financial capital. After all, they are businesses too. My advice is that you align your business with strong, dependable partners who share your values and prioritize customer satisfaction. When sourcing suppliers, aim for 2 or 3. When I began consulting for a retail organization, we ranked suppliers as First, Second, and Third Class. All were valued but had different strengths. It's not about bias; it's about recognizing each business's unique strengths and maximising this to meet your inventory management goals.

Evaluate supplier reliability during disruptions. Prioritize dependable partners to minimize stockout risks and ensure availability. Build strong relationships with multiple suppliers for resilience. Regular reviews help identify risks early and adjust sourcing strategies proactively. Avoid sole reliance on a single supplier for competitive pricing. Diversify to ensure supply continuity. For example, a retailer diversified suppliers across regions, shifting orders during delays to maintain operations and customer satisfaction.

Effective inventory management is crucial amid supply chain disruptions. Use inventory data to identify items with safety stock or substitutes, avoiding overstocking. Focus on items with high turnover to maximize investment. Efficient management means optimizing current stock while planning for future restocks strategically.

Try to keep and accurate count of product on hand. Even though this can be challenging some retail chains who don't follow weighing or SKU scanning protocols.

Maintaining customer loyalty should guide your restocking decisions. Prioritize products essential to your most loyal customers, such as unique items or those catering to specific segments. Keeping loyal customers satisfied ensures immediate sales and fosters long-term business success.