You're managing multiple inventory shortages. How do you decide which restocking tasks to prioritize?

The famous adage in the home attic “if you haven’t opened in the last 2 years, you don’t need it”. Same thing for the shelf. Inventory turns is the key metric. Benchmark with the peers and the industry. Try to better it with the product standardization, rationalization and harmonization!!

Implement lead time demand forecasting to determine the optimal order quantity based on historical usage data and expected demand during the lead time period. This helps in calculating the reorder point (ROP)—the inventory level at which a new order should be placed to replenish stock before it runs out.

1. Critical Customer Orders 2. High-Value Products 3. Production Bottlenecks 4. Lead Times and Supply Chain Constraints 5. Regulatory Compliance 6. Market Demand Trends 7. Stockout Costs 8. Alternative Solutions 9. Cross-functional Collaboration 10. Data-Driven Decisions

? Substitute Materials: Analyze compatibility and quality of alternative materials that can meet production specifications without compromising product quality. ? Supplier Options: Identify secondary or backup suppliers who can provide similar products or materials with shorter lead times or better reliability. ? Cost Analysis: Evaluate the cost implications of alternatives, ensuring that the substitution does not significantly impact profitability or pricing strategies. ? Impact on Production: Assess the operational impact of switching to alternatives, including any necessary adjustments in manufacturing processes or logistics.

Que les produits stockés ayant une faible durée de conservation soient ceux qui s'écoulent le plus rapidement possible. L'utilisation de la méthode FIFO (Premier Entré, Premier Sorti) est efficace pour gérer les produits périssables : elle réduit les pertes en utilisant les produits les plus anciens en premier, garantit la fra?cheur pour les clients, facilite la tra?abilité des lots et diminue les co?ts de stockage en évitant l'accumulation de produits périmés.

1. Prioritize Perishable Goods: Give precedence to items with shorter shelf lives to reduce waste and potential financial losses. 2. Monitor Expiry Dates: Regularly track inventory expiry dates and prioritize items nearing their expiration for use or sale. 3. Efficient Stock Rotation: Implement a first-expiry, first-out (FEFO) approach to ensure that older stock is used before newer stock. 4. Demand Forecasting: Align inventory management with demand forecasts to minimize overstocking of perishable goods. 5. Supplier Collaboration: Work with suppliers to ensure timely delivery of fresh stock and negotiate terms that account for shelf life constraints. 6. Storage Conditions: Optimize storage conditions to extend shelf life

Data Analytics: Leveraging data analytics can provide valuable insights into customer behavior, market trends, and inventory performance. By analyzing historical data, businesses can identify patterns, forecast demand more accurately, and optimize inventory levels to prevent stockoutsAd1. Artificial Intelligence (AI) and Machine Learning: These technologies use advanced algorithms to analyze historical data, market trends, and external variables. AI and machine learning enhance inventory management precision by predicting demand fluctuations, optimizing reorder points, and refining forecasting models2.