Inventory management holding you up? Consider these 7 tips

In the intricate dance of supply chains and operations, where precision and efficiency reign supreme, inventory management stands as a crucial pillar. There’s nothing more frustrating for one of your workers than when they are trying to find a product in your backroom and can’t find it anywhere… When this happens, it’s a pretty clear sign that your inventory management isn’t working as it should.

With how quickly and efficiently the world today runs, effective inventory management is not just a necessity; it's a strategic advantage. 

The task of store replenishment can already be a daunting challenge, riddled with complexities and potential pitfalls. Knowing where your products are 24/7 is crucial for your bottom-line so you can make quick decisions and prioritize what’s important: selling your products.  

Inventory management matters

Inventory management is the heartbeat of any supply chain-driven business. Maintaining the right balance between supply and demand is the linchpin that ensures customer satisfaction, minimized costs, and increased profitability. 

It’s no easy task to ensure that products are readily available when needed and without overburdening warehouses with excessive stock. It’s truly a dance to figure out how much is needed and where and how quickly it will get there… There’s no shortage of issues that can occur in this process…

6 inventory management stressors

There are a unique set of challenges when it comes to inventory management, particularly in the realm of store replenishment. Some of these pains include:

Forecasting Uncertainty: Fluctuating demand patterns, seasonal variations, and unforeseen market shifts can make accurate demand forecasting a tricky endeavor.

Excess or Insufficient Stock: Striking the right balance between having enough inventory to meet demand and avoiding overstock situations requires meticulous planning.

Working Capital Strain: Tied-up capital in excess inventory or slow-moving items can impact the financial health of the business.

Lead Time Complexities: Dealing with varying lead times from suppliers and managing timely replenishments can lead to supply disruptions.

Data Overload: Managing and interpreting vast amounts of data related to products, suppliers, and customer behavior can be overwhelming.

Operational Inefficiencies: Poorly managed inventory can result in inefficiencies in warehousing, order fulfillment, and transportation.

Are any of these all too familiar for you? What can you do to optimize your inventory management? 

7 tips to enhance your inventory management

Depending on where you feel like your inventory management is bottlenecked, there is a solution to help. 

Of the below, which is an area where you feel you could improve and/or enhance in your current processes?

1. Advanced Forecasting Techniques: Leverage data analytics and machine learning to refine your demand forecasting models. Incorporate historical data, market trends, and external factors to enhance accuracy.

2. Collaborative Partnerships: Foster strong relationships with suppliers to improve lead times and maintain open communication channels for seamless store replenishment.

3. ABC Analysis: Classify your inventory based on value and usage to prioritize management efforts. Focus on high-value items while implementing different strategies for low-value products.

4. Just-In-Time (JIT) Strategy: Implement JIT principles to minimize excess inventory and reduce working capital strain. Streamline processes to ensure products arrive precisely when needed.

5. Inventory Management Software: Invest in advanced inventory management software to automate data collection, optimize reorder points, and track stock levels in real-time. 

6. Trackable Reusable Packaging: Invest in reusable packaging with sensors built in to it so you can truly track your inventory everywhere it goes. Manage your products from afar and gain better peace of mind that it is safe, secure and on the right journey. 

7. Regular Performance Review: Conduct regular audits to identify slow-moving items, excess stock, and potential process bottlenecks. Adjust strategies based on the data and insights gathered.

The dynamic landscape of retail…

Supply chains are currently and will remain dynamic in our ever-changing landscape. Mastering the art of inventory management, knowing you have to be ready to adjust at any moment, is the key to success.

However, when you remember the 7 tips listed above and prioritize the areas that need more of your oversight, you can optimize inventory levels, reduce costs, enhance customer satisfaction, and pave the way for sustained success in an ever-evolving marketplace. 

Seamless inventory management empowers your business to respond quickly to market changes, capitalize on trends, and maintain a competitive edge.

Effective inventory management isn't just a goal; it's the cornerstone of a resilient and agile supply chain.

4 ways you can support your wholesale shipping

Wholesale shipping plays a vital role in the success of retail organizations. 

It involves the movement of large quantities of goods from manufacturers or suppliers to retailers, and ensures that products are efficiently delivered to meet consumer demands. This area of supply chain management is nothing short of complex. So many factors go into the decision-making around wholesale shipping, like:

• Procurement
• Operational efficiency
• Delivery times
• Delivery methods (ocean, air, land)
• Inventory management
• Tracking capabilities
• Forecasting

In today's fast-paced retail landscape, where ecommerce continues to grow and retailers are seeing the increasing impact of physical brick-and-mortar stores, optimizing the wholesale shipping process becomes even more critical. Not-to-mention the stress around ever-changing regulations and politics…

Regardless, there are ways to best support your wholesale shipping strategy and enhance your retail organization’s logistics.

Wholesale shipping isn’t going anywhere

Wholesale shipping is and will remain a fundamental part of the retail industry, and its significance is only increasing. 

According to Statista, global ecommerce sales are projected to reach a staggering $6.3 trillion by 2024, highlighting the continued growth of online shopping. As consumers increasingly turn to ecommerce platforms for their purchases, the need for efficient wholesale shipping becomes even more critical.

Ensuring timely delivery of products to wholesalers, customers' doorsteps and physical stores around the globe will keep your customers and your revenue streams happy.

What is this I’ve heard about brick-and-mortars and chapter 11’s though?

In recent years, we've witnessed the closure of several well-established retail stores, while others have faced financial turmoil and entered Chapter 11 bankruptcy protection. This is nothing new as businesses start and end, but it does feel like there have been more discussions around this topic since 2020. 

However, these developments can be attributed to various factors, such as:

• Changing consumer preferences
• Increased competition
• Ease of access with ecommerce

Though the closure of just some physical stores doesn't diminish the importance of wholesale shipping; it merely underscores the need for retailers to adapt their strategies to the evolving retail landscape. 

When you enhance your wholesale shipping operations, you can remain competitive and thrive in this dynamic market.

So, what does enhancing your wholesale shipping logistics look like? 

Let’s dig into it…

4 wholesale shipping enhancements

1. Invest in the right Inventory Management Systems
   • Efficient inventory management is crucial for seamless wholesale shipping. By implementing advanced inventory management systems, such as automated inventory tracking and real-time stock monitoring, retailers can optimize their supply chain processes. These systems enable accurate demand forecasting, prevent stockouts, and minimize the risk of overstocking. Over half of Operations professionals agreed that advanced inventory management solutions positively impacted their wholesale shipping processes, resulting in improved customer satisfaction and increased profitability.
   • Seems like a no-brainer, but not all Inventory Management Systems are created equally. Do your research to find what you need for your organization. What are your “must-haves”?

2. Optimize warehouse operations
   • Streamlining warehouse operations is essential to ensure the smooth flow of goods during the wholesale shipping process. Implementing warehouse management systems (WMS) and utilizing technologies like barcoding and RFID tagging can enhance inventory visibility, reduce errors, and expedite order fulfillment. It’s been found that companies employing WMS achieved a 16% reduction in order cycle times and a 6% increase in order accuracy, leading to greater operational efficiency.
   • Additionally, do you know where there are places in your warehouse operations where you could cut down on time and resources to be more efficient? One less commonly thought of way is to move to reusable packaging. We’ve found that by switching to reusable packaging from cardboard, you could save $225,000 per year in retail operations (based on 75 retail store locations with weekly shipments of 50 boxes – ask me more about this).

3. Collaborate with reliable logistics partners
   • Partnering with dependable logistics providers can significantly improve wholesale shipping efficiency. Seek out logistics companies with a strong track record in handling retail shipments and who offer competitive pricing, reliable delivery timelines, and robust tracking capabilities. According to a report by Armstrong & Associates, the third-party logistics (3PL) market grew by 10.5% in 2020, indicating the increasing importance of outsourcing logistics services. Leveraging the expertise of 3PL providers can help retailers optimize their shipping processes, reduce costs, and enhance customer satisfaction.

4. Embrace data analytics
   • Data analytics plays a vital role in identifying areas for improvement in wholesale shipping. By leveraging data from various sources, including sales, customer behavior, and logistics, retailers can gain valuable insights to optimize their supply chain. Predictive analytics can help forecast demand accurately, enabling retailers to plan inventory levels and reduce lead times. A study by McKinsey revealed that companies using advanced analytics in their supply chain operations experienced a 3-4% increase in perfect order rates, resulting in enhanced customer loyalty and improved profitability.
   • As mentioned above, RFID tagging can help provide more data about what goes on inside your warehouse operations, but there’s more data to be captured that your current inventory management and warehouse management software can only capture so much of. What about your sustainability data and the ability to track your packages 24/7/365? Moving to reusable packaging that provides real-time tracking gives you more visibility into your supply chain so you can optimize, optimize, optimize.

So, what’s next?

Wholesale shipping remains an indispensable part of the retail industry, and it requires a good amount of trust with your distributors.

By investing in advanced inventory management systems, optimizing warehouse operations, collaborating with reliable logistics partners, and embracing data analytics, retail organizations can improve their wholesale shipping efficiency, reduce costs, and deliver exceptional customer experiences. 

By adapting to the changing retail landscape and prioritizing efficient wholesale shipping, retailers can navigate the industry's challenges and emerge as leaders in the evolving marketplace.

Looking for more visibility into your supply chain? Learn more about LimeLoop’s Trackable Reusable Packaging