Inventory management mistakes constitute a significant cost contributor in today’s supply chains. According to Rod Daugherty of Manufacturing.net, the costliest problem is due in large part to poor inventory visibility and planning. More than 60 percent of wholesalers routinely keep more than one month of inventory on-hand, and since 77 percent of businesses lose sales due to poor inventory management, such as not locating inventory close enough to consumers, the effects can be astounding. Of course, other factors contribute to mistakes, and shippers need to understand the most common mistakes and how to eliminate them at last.
As noted by Logistics Bureau, the most common inventory management mistakes include:
Eliminating inventory management mistakes adds value to your organization by streamlining warehouse management and enhancing order accuracy for customers, allowing companies to maintain proper inventory levels and reduce unnecessary inventory. In other words, a better understanding of inventory needs translates into faster order fulfillment through optimized picking paths, application of data to understand inventory, and improved labor management.
Retailers should follow a few steps, according to Rod Daugherty of Manufacturing.net, to reduce inventory management mistakes, including:
Depending on the scale of your organization, the simplest inventory management mistakes can have disastrous consequences. Instead of trying to put out fires with excessive inventory, supply chain leaders should take steps to streamline and optimize inventory to gain efficiency in the world of omnichannel and e-commerce.
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