Maintaining inventory is still one of the challenging things that you will encounter in the retail industry. You will face various obstacles throughout the supply chain, but there are several ways to prevent these.
The holiday season is a special time for so many people, and it can also be a challenging time for the retail industry. The entire supply chain faces a challenge during the holiday season, and inventory management does not get away with it either. It's always the busiest time of the year, so it is good to prepare and expect the usual obstacles and have a system to deal with them should these problems arise.
Supply chain disruption is one of the common challenges for all businesses, especially during the pandemic. Now that the holiday season is fast approaching, there are also obstacles that inventory management will encounter. Below are some challenges that inventory management may face.
For cost-saving purposes, there are a lot of businesses that work with various international suppliers. During the holiday season, you may want to order in advance and find an alternative local supplier. Cross-border shipping and customs can take longer during this time, and you might not meet your deadline for replenishing stocks.
If working with an international supplier is the best for your company, try to find backup suppliers.
Problems in Logistics
Booking drivers can pose a big problem especially if you cannot find one.
If you have a large inventory, logistics can be a nightmare. A third-party logistics provider can make things easier on your end. Pick those that are nearest to your warehouse and stock up early. When you plan ahead of time, you can organize, categorize, and even see what else is lacking.
Supply chain integrity
The people in the supply chain are all important. These are your manufacturers and suppliers. Everybody must remain in sync to make things work. Good inventory management software will allow you to anticipate which items you will require more and how much to order from your supplier.
Not Tracking Inventory
This is a big no-no. Keeping track of your stock regardless of the type of business is very important during the holiday season. A good inventory management software will lighten your load by a lot so you can avoid stock-outs or overstock.
Prepare backup plans and train for the busy season. Test the system before the rush and see if there are other things that you can improve on. By having time to spare, you can go through the entire ordering and fulfillment process, prepare for unexpected things, and have a possible solution ready.
Even though you have been in the business for quite a while, you also need to adjust to the changes around you and one of these is investing in inventory management software. At first, you may think that it is an added expense, but overall, it can save you a lot of time and focus on growing your business. Remember, even Santa has elves to help him.