How can stock management balance efficiency and resilience in uncertain times?

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Stock management is the process of planning, controlling, and optimizing the flow of goods and materials in a business. It is essential for meeting customer demand, reducing costs, and increasing profitability. However, in uncertain times, such as the COVID-19 pandemic, stock management also faces many challenges and risks. How can you balance efficiency and resilience in your stock management strategy? Here are some tips to help you adapt and thrive in a changing environment.

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Fabiana Richartz

Gerente Planejamento | Coordenador | Demanda | Abastecimento | Gerente de Produto | Gest?o de Categoria | OTB
Amir Ali Mohammadi

Senior Accountant at ???? | Azki | Sr. Financial Analyst

1 Assess your current situation

The first step is to evaluate your current stock levels, demand patterns, and supply chain performance. You need to identify any gaps, bottlenecks, or vulnerabilities that could affect your operations. For example, you might have excess inventory that ties up your cash flow, or you might have low stock availability that leads to lost sales. You might also have unreliable suppliers, delayed deliveries, or increased costs. By analyzing your data and metrics, you can gain insights into your strengths and weaknesses, and prioritize your actions.

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Fabiana Richartz

Gerente Planejamento | Coordenador | Demanda | Abastecimento | Gerente de Produto | Gest?o de Categoria | OTB
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é uma maneira ideal para nao ficar com o fluxo de caixa preso no estoque ou seja, a efetivadade na analise situacional do estoque e sua melhoria operacional condiciona menos investimento em momentos de incerteza

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Amir Ali Mohammadi

Senior Accountant at ???? | Azki | Sr. Financial Analyst
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Balancing efficiency and resilience in stock management during uncertain times requires a strategic approach. Here are some key tactics to achieve this balance: 1. Optimized Inventory Levels: Maintain optimal inventory levels by utilizing demand forecasting techniques. This involves analyzing historical data, market trends, and external factors to predict future demand accurately. By avoiding overstocking or understocking, you can improve efficiency while being resilient to fluctuations in demand. 2. Diversified Supply Chain: Diversify your supply chain by working with multiple suppliers or sourcing from different regions. This reduces the risk of disruptions due to supplier issues, natural disasters, or geopolitical factors.

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2 Optimize your inventory

The next step is to optimize your inventory to match your demand and supply. You need to balance the trade-off between having enough stock to meet customer needs, and having too much stock that wastes space and resources. You can use inventory management techniques, such as ABC analysis, EOQ model, or safety stock, to classify your products, calculate optimal order quantities, and set reorder points. You can also use forecasting methods, such as moving average, trend analysis, or seasonality, to predict future demand and adjust your inventory accordingly.

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Amir Ali Mohammadi

Senior Accountant at ???? | Azki | Sr. Financial Analyst
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3. Flexible Manufacturing and Production: Implement flexible manufacturing and production processes that can quickly adapt to changes in demand or supply chain disruptions. This may involve using agile manufacturing methods, flexible production lines, or adopting technologies like 3D printing for rapid prototyping and small-batch production. 4. Real-Time Monitoring and Analytics: Utilize real-time monitoring and analytics tools to track inventory levels, supplier performance, and market conditions. This enables proactive decision-making and adjustments to stock management strategies in response to changing circumstances, ensuring both efficiency and resilience.

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Carlos Roberto Kassai

Software: SBPL - Strategic Budget Plan | Planejamento Or?amentário | Custos | Pricing | Relatórios Gerenciais | Capacita??o em Controladoria e Finan?as
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O Inventário diário e permanente (24 horas) para lotes de produtos confere maior credibilidade nos saldos de produtos. Em uma loja de supermercado a presen?a de um funcionário para o inventário, funciona também como um guardi?o

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3 Diversify your sources

The third step is to diversify your sources to reduce your dependence on single or few suppliers. You need to have multiple options for sourcing your goods and materials, in case of disruptions, shortages, or price fluctuations. You can use supplier management tools, such as SWOT analysis, scorecards, or audits, to evaluate and compare your potential and existing suppliers. You can also establish long-term relationships, contracts, and agreements with your suppliers, to ensure quality, reliability, and flexibility.

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Amir Ali Mohammadi

Senior Accountant at ???? | Azki | Sr. Financial Analyst
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5. Collaborative Relationships: Foster collaborative relationships with key stakeholders, including suppliers, distributors, and logistics partners. Open communication channels and partnerships built on trust allow for better coordination and problem-solving during uncertain times, enhancing resilience while maintaining operational efficiency. 6. Contingency Planning: Develop contingency plans and risk mitigation strategies for various scenarios, such as supply chain disruptions, sudden changes in demand, or economic downturns. These plans should outline specific actions to take in response to different situations, ensuring resilience while minimizing disruptions to stock management processes.

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4 Implement technology

The fourth step is to implement technology to enhance your stock management capabilities. You need to have systems and software that can automate, integrate, and streamline your stock management processes. You can use tools such as barcode scanners, RFID tags, or IoT sensors, to track and monitor your inventory in real-time. You can also use tools such as ERP, WMS, or POS, to connect and coordinate your inventory with your other business functions, such as sales, finance, or logistics.

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Amir Ali Mohammadi

Senior Accountant at ???? | Azki | Sr. Financial Analyst
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7. Continuous Improvement: Continuously review and improve stock management processes based on lessons learned from past experiences and feedback from stakeholders. This iterative approach helps adapt to evolving challenges and opportunities, enhancing both efficiency and resilience in stock management. By implementing these strategies, stock management can effectively balance efficiency and resilience in uncertain times, enabling businesses to navigate challenges while maintaining operational excellence.

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5 Review and improve

The final step is to review and improve your stock management strategy on a regular basis. You need to measure and evaluate your performance, using indicators such as inventory turnover, fill rate, or stockout rate. You need to identify and correct any errors, inefficiencies, or deviations from your goals. You also need to monitor and respond to any changes in your internal or external environment, such as customer preferences, market trends, or regulatory requirements. By doing so, you can continuously improve your stock management and achieve your desired outcomes.

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6 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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Carlos Roberto Kassai

Software: SBPL - Strategic Budget Plan | Planejamento Or?amentário | Custos | Pricing | Relatórios Gerenciais | Capacita??o em Controladoria e Finan?as
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O SEGMENTO DE VAREJO é PENALIZADO NA SUA GERA??O DE CAIXA. Pois, ao transformar seu maior capital em estoque mínimo permanente, que tem comportamento fixo, como um equipamento do segmento de manufatura, mas que n?o se beneficia de custo algum "gerador de caixa" como a deprecia??o. Por isso os maiores Ebitda’s s?o da manufatura, ao qual também poderia corrigir os bens, gerando uma deprecia??o ainda mais justa para rep?-los naturalmente com capital próprio, sem necessidade de infindáveis novos empréstimos. O Custo de Estocagem deveria ser reconhecido nos critérios contábeis fiscais, ajustando no pre?o até pela concorrência. Com esta medida haveria aumento do caixa e da margem baixa peculiar deste segmento.

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How can stock management balance efficiency and resilience in uncertain times?

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1 Assess your current situation

2 Optimize your inventory

3 Diversify your sources

4 Implement technology

5 Review and improve

6 Here’s what else to consider

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