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Inventory Planning

Le Point de Vue de Quintiq


Are you paying attention to your inventory?
by Sriyani Rao - Social Media Community Specialist, Quintiq

Do you remember Hypercolor, the clothes that changed color with body heat? I do, and not just because of the novelty value. Initial demand for the clothes was so high that the company worked tirelessly to meet it. Then they overproduced, struggled to sell, and went bankrupt.

It’s a scenario we see time and again. Why? In large part, it’s because many companies don’t pay the right kind of attention to their inventory.

There’s a lingering belief that inventory is somehow unpredictable and behaves independently of the rest of the business. But it’s not true. If you incorporate inventory directly into sales and planning operations, and optimize it at every opportunity, you’ll have a strong grasp of your stock levels, save money and improve customer service.

Mastering the balance between low inventory and high performance is a challenge, but it’s one that needs to be met. If you’re new to the idea of inventory optimization, here’s some advice to help you reach your goal.

1. Base inventory on desired customer service levels
2. Be flexible
3. Use actual inventory levels

Click below to expand each advice

 


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With the increasing availability of Point of Sale (POS) and other downstream data over the last decade, companies selling through retail channels have strived to use such data to...


Does perpetual inventory in your mind seem a lot like dating a movie star —nice dream, but hardly reality? With tens of thousands of items in each store,...


This Flash Forward considers a new approach to solving the "On-Shelf Availability" (OSA) issues that retailers face and some of the obstacles they have...


Automating the creation of attribute-based forecasts at the SKU level is called proportional profile planning. From storage capacity options in laptop computers to diameters of PVC...


The competitive landscape of the pharmaceutical industry is changing dramatically. Sales are slowing, innovation is losing its punch, and complexity is rising in markets and...



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