What are the best ways to reduce costs in stock management?

- A clear analysis of the inventory based on the consumption value - 360 degree collaboration with the suppliers for vendor managed inventory for all the items , especially slow moving items - continuous monitoring of the trends and changes in the trends to be linked with the inventory strategies

Demand Forecasting: Accurate demand forecasting helps prevent overstocking or stockouts. Use historical data, market trends, and customer feedback to predict future demand more precisely. Supplier Negotiation: Regularly negotiate with suppliers for better terms, discounts, and payment terms. Consider building long-term relationships with reliable suppliers to secure favorable agreements. Just-in-Time (JIT) Inventory: Implementing a Just-in-Time system can minimize storage costs and reduce the need for excessive safety stock. Technology Integration: Invest in inventory management software and systems that automate processes, reduce errors, and provide real-time visibility.

One of the best ways to reduce inventory costs is to negotiate better prices with your suppliers. This may involve shopping around for new suppliers, getting volume discounts, or negotiating longer payment terms. Negotiate lead times: Lead times are often negotiable.

The merchandise planning based on Previous sales and stock turnover data is the first step in effective management of Cost in stock. Add the volume of new sales channels, seasonal and event volumes to be accounted separately, and Add budgeted turnover growth. This should be the Skeleton plan for effective stock cost management. Furthermore, close scrutiny of order plans of Departments, Categories and Subcategories is also very important to ensure correct stocks are being ordered. Lastly, phasing in and delivery plans of products to be correctly timed as per business plan to ensure all the products are available at the right place at the right time, for the best price.

Improve demand forecasting is one of the vital strategies to reduce Inventory cost , Get rid of obsolete and ageing stock , JIT Inventory management practices.

1. Dynamic statistical safety stock 2. Risk pooling and determining decoupling point 3. Reduced complexity of variety 4. Product segmentation basis value/volume and volatility (ABC XYZ) 5. Link forecasting to ordering and replenishment 6. Ruthless weeding out non performing SKUs, clearance plan 7. Targets on service level (higher service on the ones that matter) 8. Fill rate improvement + lead time reduction plans 9. Node design basis inventory storage plan, linking sales and space 10. Higher frequency of ordering /replenishment 11. MOQ and case pack reduction 12. Regular physical inventory correction esp of high value products and inventory accuracy 13. Scientific promotion festival stock planning 14. New article buys scientific

1. Robust forecasting / business operations planning processes. 2. Effective replenishment methodologies incorporating right safety settings, lead time management and sourcing strategies 3. Adequate WMS and Operations cadence that facilitates appropriate inventory practices including (not limited to) cycle clunting procedures, appropriate handling of inventory statuses and life cycle.

Podría aportar: 1. Reducir lo más posible el error en el pronóstico para evitar tener dinero parado en tus almacenes y el cuál llamamos inventarios. 2. Tener poca pérdida en operación, como da?o en el producto. Reduciendo la estancia en el almacén y evitar movimientos innecesarios, dentro del almacén. 3. Trabajar con el equipo de comercial para tener políticas de salida de producto de baja rotación, para poder retirarlos del almacén y poder venderlos aún. Evitando destrucción. 4. Revisar los MOQ de manufactura y de compra, se piensa que el fabricar mucho reduce el costo de producción o de compra, hay que revisar el EOQ para validar que esto sea correcto y no se termine destruyendo el producto.

From my perspective -to optimize inventory in addition to statistical methods, the ability to use computer vision AI/ML to understand the planogram in a retail use case and in real-time observe the changes happening and inform the staff of necessary adjustment to products on the shelf based on movement. This approach adapts to various scenarios as it is learning and can continuously adapt.

See Parts 1 & 2 of my note on DDMRP in point #1. Here's part 3. Some DDMRP benefits include: Improvement in the level of service with the reduction of inventory. Customers who have implemented tools with the methodology have reported average decreases greater than 30% in their inventory with service levels greater than 98%. Decrease in spending on extra costs such as cross-docking, overtime and emergency transport that significantly impacts the total cost of the operation. Through strategic decoupling, a reduction in Lead Time for the client generates opportunities to attract new business or increase margins. And because it is a simple and direct methodology, the company has a clearer vision.

Having a Inventory Health Card for the whole stock to see category wise movement of stock and treat the same as a chequing account to have constant purview of healthy stock and blockers which might end up as dead stock. Depends on the industry and frequency of movement for implementation of this case.

A continuación un detalle de 3 de las prácticas más utilizadas en la gestión de stocks: 1. Aplique el principio del JIT (Just In Time) para minimizar los niveles de inventario y recibir los suministros justo a tiempo para su uso o venta, reduciendo así los costos de almacenamiento y obsolescencia. 2. Implemente un sistema de se?alización visual, como el Kanban, para controlar el flujo de materiales y garantizar que solo se repongan los productos necesarios, evitando así el exceso de inventario. 3. Utilice la clasificación ABC para categorizar los productos según su importancia y valor. Esto le permitirá enfocar sus esfuerzos en la gestión y control de los productos más críticos.

I'd like add two more things- - Dedicate ownership - Increase awareness about the consequences of not to taking care of inventories

#ITR - Inventory Turnover Ratio: This is a measure of how many times inventory is sold and replaced over a period. Higher turnover indicates efficient inventory management. ??Example: A grocery store tracks its inventory turnover to keep perishable goods fresh and reduce spoilage.

Adopting lean and agile practices can be a transformative journey for your organization, leading to increased efficiency, flexibility, and customer satisfaction. Here's a roadmap to guide you through the process: 1. Understand the principles 2. Assess your current state 3. Define your goals and objectives 4. Start small and experiment 5. Build a culture of continuous improvement

Seek better pricing, payment terms, and lead times from your suppliers. Consider volume discounts or vendor managed inventory (VMI) programs.

In terms of Inventory Cost and optimizing the same, Factory gate pricing and pick ups are one model which gives a lot of flexibility to Retailers. The Minimum Order Qty and hence the Carrying Costs come down and the utilization of Delivery Trucks with Reverse Logistics gives the Retailer an upper hand for Margin Negotiations. In many Categories, Sales or Return (SOR) has been very commonly used and gives a lot of benefits to both the Brand and the Retailers

The most effective steps, in my opinion will be: 1) Negotiate the prices of products with suppliers, check for the best contract that is incurring the least cost 2) Find out the optimal order quantity that will create the least total inventory cost for all the options 3) Select the option that incurs the least cost.

In my experience, some suppliers will agree to hold back up stock for you in their warehouses which can be released to other customers should you not meet expected sales or sent to your locations as a just in time model. The goal is to have as little cash invested in dead inventory and the space it requires.

Better mutual terms with suppliers will be best idea. Because lowest price will be mostly prefererred, but it will be one sided terms in long periods.

Tips to Train and Motivate your staff - First and foremost: As a head of department you must explain team about importance of stock management and its repercussion in terms of monitory loss, If job in not performed efficiently -Explain them what is expected out of them - prepare skill matrix of each team members engaged with Stock management -Reshuffle and align job allocation on skill sets -Identify the Gap between Expected results and Skills of each colleague -Based on GAP analysis ,define content of Training modules.( do not overburden colleagues with irrelevant topics ) - Implement Reward and Recognition scheme - Appreciate colleagues during monthly departmental meeting -Provide them platform to share good practices

Cross-functional training - train staff to handle multiple roles within the inventory management process, ensuring flexibility and efficiency.

I agree and would add that buying and visual presentation need to work hand in hand - the buyers need to know where their skus will be placed on the store floor prior to finalizing the order as too often, stock spends too much time off the selling floor, loosing value in the back room or warehouse.

What we recently implemented is having a team overlooking the inventory across board and move between warehouses to balance buffer stock level

Cross train the employees to perform multiple roles within the inventory management process. This flexibility can reduce labour costs by enabling you to adjust staffing levels based on demand without compromising on performance.

Los modelos de optimización ayudan muchísimo, pero tenga en cuenta que estos modelos son totalmente customizados, no se pueden "copiar" y "pegar". Se requiere un modelo matemático preciso que parte de una calidad de datos y una metodología precisa para determinar las necesidades reales. Como al sentarse frente al genio de la botella y saber exactamente los deseos, si no, podrias echar al agua todo el esfuerzo de optimizar.

Use inventory management software: Implement software to automate tasks like order processing, inventory tracking, and reporting. This can improve accuracy, efficiency, and data accessibility. Explore automation solutions: Consider robotic systems for automated picking, packing, and material handling, especially for high-volume operations. Leverage data analytics tools: Utilize data analytics tools to gain deeper insights into your inventory data and identify opportunities for further cost reduction.

Il est également très utile d'organiser des audits réguliers sur la gestion des stocks : les flux in-outs, les méthodes de valorisation utilisées, les inventaires cycliques ou annuels, la rotation des stocks, les procédures à respecter (cha?ne du froid, traitement des produits périssables, produits endommagés, stocks dormants, stocks de sécurité, stocks en transit, etc.). Les auditeurs formuleront par la suite des recommandations qui permettront d'optimiser la gestion de stocks.

Some of inventory reduction methods: 1. reduce inventory using stock classification 2. Shorter order cycles help with inventory reduction 3. Supplier lead time reduction 4. Multi-echelon inventory reduction techniques 5. Eliminating obsolete inventory

Utilizing technology and automation is indeed a highly effective strategy for reducing costs in stock management. Here are several ways in which technology and automation can be leveraged to achieve cost savings: 1.Inventory Management Systems 2.Barcoding and RFID 3.Automated Reordering 4.Warehouse Automation 5.Data Analytics 6.Supplier Integration 7.Training and Support By leveraging technology and automation in stock management, organizations can achieve greater efficiency, accuracy, and cost savings throughout the supply chain, ultimately enhancing their competitiveness in the market.

One of these alone will not yield results. A robust S&OP process will link all of the recommendations into a circular process flow that yields sustainable results.

In addition to what's already been covered, Reduce Inventory Storage costs by, * JIT Ordering patterns, * Maximizing storage capacity, * Quick actions on EDRO Inventories.

One of the common way to value inventory is using FIFO( first in, first out), this aims to reduce inventory waste by selling older products first, using the first to expired products first.

it is necessary to take consideration of: 1-subjective and objective forecasting 2-use technologies (MRP - ERP,…) 3-inventory optimization 4- inventory performance measures KPIs: where they should be SMART

Algo que podría a?adir es incluir a comercial un KPI de acertividad o accuracy sobre el forecast, usualmente el área comercial busca siempre tener stocks, cuanto más mejor, para esto aveces podrían elevarse los presupuestos comerciales traduciéndose en mayores costos operativos. No dejar que sólo sea un kpi operacional sino que incluya a comercial puede favorecer un trabajo colaborativo pues permite tener una mayor perspectiva del impacto que puede causar las desviaciones.