Loss of customers, damaged brand image or employee demotivation are some of these consequences, the impact of which can be significantly reduced if an ERP 360 is acquired to manage the warehouse.
Controlling stock , and doing so efficiently , is an essential factor when managing a business, whether in a physical store or online. However, this objective can only be achieved by using intelligent business management technology that allows the accounting department to make demand forecasts , thus reducing inventory costs, increasing the company's profitability and improving customer relations, who see their purchases satisfied.
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Causes of stock problems
In order to find a solution to a problem, the causes of the problem must first be determined. In relation to stock-outs, companies are well aware of the complications that this setback can have for their accounts, but avoiding them necessarily requires determining the causes. Only in this way will it be possible to design strategies that guarantee having the optimal batch, the order point and pharmacies email list the safety stock ready , three essential factors that companies must keep in mind if they want to have good warehouse management .
Why does a stock shortage occur? Below we highlight some of the factors that contribute to this phenomenon.
Neglecting the ordering point , which means not contacting suppliers at the right time. When we talk about high-end products, the company can wait until there are few units left to place the order with its suppliers , but when it comes to high-turnover products, these must be constantly renewed.
Today's ever-changing market , combined with order volatility and increased competition, can result in fluctuations in demand that create stock imbalances. A good example of this is the seasonality of products, which has a direct effect on stock levels.
Failure to agree with the supplier on the delivery time of the order causes delays that can negatively impact the safety stock , an essential resource for covering unforeseen events. The financial department must determine with the suppliers the lead time (the time it takes for an order to enter the warehouse).
The stockout rate can be calculated by multiplying the ratio of unfulfilled orders to total orders by 100.
