You're facing inventory disruptions. How can you strategically manage your inventory to minimize the impact?

Most companies perform inventory analysis once a year during budget period, market trends can change frequently. To succeed inventory analysis must be reviewed quarterly or monthly depending of the market you serve.

Assessing risk can be challenging as it's not a routine and requires rigorous deep dive and analytics to find the weakest link in the supply chain. But I agree that having the right alternative plans and agility in the supply chain could reduce the risk of severity and mitigate the effect of risk. For example working with multiple suppliers than only one or two reduced risk of supply for critical and long lead items. Distributing the supplier in different geography further reduces this risk and provides immunity against geopolitical unrest, regional disruption, it also prompts a healthy competitive environment in the pool.

There could be huge risk due to inventory disruptions and these risks must be assessed in advance. The risk assessment of entire supply chain will give good idea and mitigating risk will help to handle this situation more amicably compared to just waiting and let the situation go out of control. Once risks are identified, it is easier to work on remedies and solutions. Identification of problem and whether it is due to transportation issue, supply chain issue, Manufacturing issues, labour issues, or external factors and based on the findings next course of action to be determined.

Develop a risk management plan with clear strategies for prevention and recovery. Diversify suppliers to reduce reliance on a single source. Maintain strong communication with suppliers for quick issue resolution. Utilize technology for inventory visibility and control. Implement a logistics control tower for real-time insights. Keep a backup inventory of critical items. Employ predictive analytics to anticipate and prepare for disruptions. Adopt agile supply chain management to adapt quickly to changes.

Managing inventory disruptions requires a strategic approach to minimize their impact. Here are several key strategies you can consider: 1. **Demand Forecasting**: Use historical data, market trends, and any available predictive analytics to forecast demand accurately. This helps in adjusting inventory levels proactively. 2. **Safety Stock**: Maintain a buffer of extra inventory known as safety stock to cover unexpected demand spikes or supply chain delays. The amount of safety stock should be determined based on lead times and demand variability. 3. **Supplier Relationships**: Cultivate strong relationships with suppliers. This can lead to better communication, priority during shortages, and possibly .

Accurate demand forecasting is you stocking up your basics for a bad winter or bracing yourself for a bad weather phenomenon. Demand planning helps supply chains optimize their inventory levels and meet regular disruptions efficiently.By implementing new age advanced analytics such as ML and predictive models, supply chains can enhance the accuracy of their forecasts. Regular updates based on real-time sales data, market trends, and seasonal variations will help enforce forecasts to remain current and adapt to changing conditions. This proactive approach will not only reduce the risk of overstocking/stockouts but also improve overall operational efficiency and customer satisfaction.

Historical Sales Data: Analyze past sales to identify patterns and seasonal trends. This data provides a solid foundation for understanding demand fluctuations. Market Analysis: Stay informed about market conditions, including economic indicators and industry trends, which can impact consumer behavior and demand. Customer Feedback: Gather insights directly from your customers to understand their needs and preferences, helping you anticipate shifts in demand. This enables more strategic purchasing and production planning. Ultimately, using effective demand forecasting in Planograma helps you maintain optimal inventory levels, improve customer satisfaction, and reduce costs associated with excess inventory or lost sales.

5. *Optimize inventory levels*: Use economic order quantity (EOQ) calculations to determine optimal inventory levels. 6. *Consider dropshipping or third-party logistics*: Outsource inventory management and shipping to reduce inventory holdings. 7. *Implement a robust inventory management system*: Utilize software to track inventory levels, monitor supplier performance, and receive real-time alerts for potential disruptions. 8. *Develop a contingency plan*: Identify potential risks and create a plan to address them, including emergency sourcing and expedited shipping options. 9. *Regularly review and adjust*: Continuously monitor inventory levels, supplier performance, and market conditions, and adjust strategies as needed.

An assertive forecast is mandatory when we talk about shortage materials, even if you have a safety Stock. Considering actual sea transport (if imported material), any delay or Port omission Will impact if forecast demand are wrong. So, controlling it, the impact May be reduced.

Accuracy of standard deviation is more important than the forecast itself historically. Need to engage your sales force to incorporate non historic events

Imagine you restocking your pantry/fridge by checking the inventory. You categorize items as per usage- High, medium,& low & then restock as per requirement based on usage, availability & value.That is basic inventory analysis for you. Inventory analysis is crucial for efficient stock management. JIT help ensure stocks of popular items are present immediately as customers need them, reducing overstock and waste.Advanced inventory systems with IoT & RFID help & automate tracking & provide real-time updates on stock levels. This optimizes operations, lowers storage costs, and improves customer satisfaction by ensuring products are always available enhancing profitability and responsiveness to market demands.

At Planograma we implement a detailed inventory analysis process which reveals slow-moving items that are unnecessarily occupying storage space. By addressing this, we are able to free up capital and focus more on high-turnover, high-value products. This approach helps maintain a lean inventory that is less susceptible to disruption. It not only optimizes storage space and capital use but also ensures that you are better prepared to respond to market changes swiftly. By staying proactive with inventory analysis, you can enhance overall efficiency and resilience in your supply chain.

In addition to the initial comment, leveraging advanced forecasting and technology is crucial. Predictive analytics and real-time data help us anticipate demand changes and adjust inventory levels proactively. Strong supplier collaboration enhances supply chain resilience, allowing quick responses to disruptions. Implementing automated inventory management systems reduces errors and ensures accurate, up-to-date information, while setting alerts for reorder points. Regular audits of our inventory processes further identify inefficiencies and areas for improvement. These strategies collectively support maintaining an optimal, disruption-resistant inventory.

Start by analysing the goods on inventory using the ABCD analysis. One you know your high runners and low runners and the delivery frequency, you can setup a Kanban system or similar using the parameters of your analysis. For D Items, talk to your Commodity team if you can bring manufacturing closer to your warehouse/factory or make those items in-house.

Inventory disruption can happen due to many reasons and one of the root causes is improper stocking of inventory. Periodic check of inventory and cycle count could be effective to avoid such disruption. The basic inventory classification (ABC, VED etc..) and monitoring the inventory level often indicates reduction in stock out and better service levels. It also provides clarity on discussing liquidation opportunities for obsolete inventory unlocking additional spaces for fast moving sku, better warehouse utilisation and inventory churns.

Start by analysing the goods on inventory using the ABCD analysis. One you know your high runners and low runners and the delivery frequency, you can setup a Kanban system or similar using the parameters of your analysis. For D Items, talk to your Commodity team if you can bring manufacturing closer to your warehouse/factory or make those items in-house.

Logistics revolves around the flow of goods and the precise timing of operations. At every phase, there may be delays or advancements. To prevent disruptions, logistics professionals often introduce buffers into the process. However, this can lead to a "bullwhip effect" across the entire supply chain, resulting in excess inventory and increased losses. The solution lies in leveraging technology to gain end-to-end visibility (E2E) of all processes, ensuring better coordination, and minimizing inefficiencies.

Investir em tecnologia de gestão de estoque é essencial para responder de forma eficaz às rupturas de estoque. Dados em tempo real e sistemas automatizados melhoram a visibilidade e a eficiência da cadeia de abastecimento, permitindo decisões ágeis e precisas. A implementação de sistemas de gestão de estoques com tecnologia avançada não só evita rupturas de estoque, mas também permite operações mais ágeis e eficientes, estabelecendo como uma estratégia competitiva essencial no mercado atual.

With increasing expectations from consumers and hence customers are expecting an incredibly higher level of flexibility and Swift supply chain which can meet serviceability at best optimised cost. This has raised the importance of every level visibility of flow of material. The visibility in the current VUCA world has no longer limited to the premises of organisations but has also extended to the customer and supplier boundaries. The expectations are increasing over the time at each level of value chain. This is leading to incredible penetration of technology interface & collaboration Joint business plans with suppliers and customers are helping to build agility and swiftness in the supply chain along with internal flow of information.

Te recomiendo emprender las siguientes acciones: -Implementar un sistema de monitoreo en tiempo real para detectar problemas rápidamente. -Usar herramientas predictivas en la planificación de inventarios para anticipar demandas y ajustar niveles según tendencias y patrones históricos. -Diversificar tus proveedores para reducir la dependencia de una sola fuente. -Mantener niveles "racionales" de inventario de seguridad adecuados para cubrir fluctuaciones inesperadas. - Optimiza tu cadena de suministro mediante análisis predictivo y planificación proactiva. -Fomentar una comunicación abierta y constante con proveedores y clientes para anticipar y gestionar cambios.