Common Inventory Management Challenges

Because inventory causes exponential pain with multiple warehouses... This infographics shows how to manage inventory in this context: ➡️ Centralize Inventory Visibility ↳ Issue: not knowing inventory levels across locations can lead to overstock in one warehouse and stockouts in another ↳ Action: Implement an inventory management system/ ERP that shows real-time inventory positions for all warehouses in one snapshot ➡️ Classify Products and Prioritize ↳ Why: Not all SKUs deserve the same treatment; some are high-value, others are seasonal ↳ Action: Use ABC analysis to rank products by focusing on A-items for tighter control ➡️ Define Replenishment Rules by Warehouse ↳ Why: Different warehouses cater to different regions or demand patterns. One-size-fits-all reorder points (ROP) won’t cut it ↳ Action: Tailor ROP, safety stock, and min-max levels by location. Consider lead times from central distribution centers or suppliers for each site ➡️ Breakdown Forecast by Warehouse ↳ Why: Each warehouse faces unique market dynamics ↳ Action: Generate warehouse-level forecasts, combining local sales trends with broader S&OP inputs ➡️ Plan Transfers Strategically ↳ Why: Sometimes it’s of lower cost or faster to transfer stock than reordering from suppliers ↳ Action: Set up a transfer framework; regularly review surplus vs. deficit at each location. Automate triggers for transfer orders when it’s cost-effective. ➡️ Monitor KPIs Proactively ↳ Why: Multi-warehouse complexity can hide inefficiencies when not tracking the right metrics ↳ Action: Track fill rate, inventory turnover, stock aging, and transfer costs at each site. ➡️ Plan Direct Dispatches & Save Costs ↳ Why: Dispatch directly from the plant to save logistics costs ↳ Action: Prepare daily dispatch plans targeting direct replenishment from the plant and use these warehouses for milk runs for distributors Any others to add?

🚀 When I was running TeaSquares, keeping up with production while managing inventory was a constant challenge. Learn from my mistakes so you don't have to go through them. Here’s here's what you need to know: I remember one time we overproduced a batch due to a miscalculated sales forecast selling to Jewel Osco—leading to excess inventory that tied up cash flow and eventually expired. 😬 On the flip side, there were moments when a sudden surge in orders left us scrambling to restock, missing out on potential sales. I felt like I was constantly getting pushed around by some outside force. It left me scrambling and my team feeling off balanced and reactionary. Here’s how to gain clarity and set your brand up for sustainable growth: 🔹 Align Sales Forecasts with Inventory 📊 → Predict demand & avoid stockouts 🔹 Track COGS in Real Time 💸 → Stop guessing your margins 🔹 Implement Batch Tracking ✅ → Stay compliant & recall-ready 🔹 Monitor Profitability by SKU 📈 → Focus on your best performers 🔹 Automate Reporting 🤖 → Save time & catch issues early 💡 Pro Tip: If a product isn’t profitable, either adjust pricing or cut it from your lineup! Read the full article here: https://lnkd.in/gXGnayhV Written in collaboration with Marcos and Benoît at Kaizntree 🔥 Have you ever struggled with balancing sales and production? Drop a comment—I’d love to hear your experience! ⬇️ #CPG #foodandbeverage

Logistics leaders are realizing that sticking to manual inventory processes are costing their warehouses more than they thought. While they may feel familiar and straightforward, outdated methods come with hidden costs that quietly eat away at profitability and efficiency. The top 3 culprits are: 1️⃣ Human Error: Manual processes are prone to mistakes, from inventory discrepancies to misplaced items. These errors lead to overstocking, stockouts, and wasted labor on rework, all of which add up fast. 2️⃣ Labor Inefficiency: Manual inventory counting is time-consuming, pulling employees away from higher-value tasks. High turnover rates and training costs make this even more expensive. 3️⃣ Missed Opportunities: Without real-time visibility, businesses miss out on data-driven decisions, leaving them vulnerable to supply chain disruptions, delays, and lost revenue. The Bottom Line: Manual processes might seem cost-effective in the short term, but their inefficiencies add up—fast. Modern, AI-powered inventory solutions can reduce errors, streamline operations, and deliver real-time insights, all while saving time and money. 💡 How are you addressing these challenges? #SupplyChain #Automation #AI #Logistics

Tiny errors lead to... Massive chaos. Enter the bullwhip effect in supply chain management: It starts small. Such as a minor change in customer demand. But as the signal travels upstream: retailer → supplier → manufacturer The swings get wilder at every step. What’s the result? • Overstock • Shortages • Waste • Missed revenue All from a single ripple that turned into a whip. Why does it happen? • Overreaction to demand changes • Lack of real-time data • Poor communication • Batch ordering and long lead times How to prevent it: 1. Improve demand forecasting 2. Share data across partners 3. Shorten lead times 4. Use tech for real-time visibility 5. Align incentives across the supply chain You can’t control demand. But you can control how your system responds to it. Ever seen a small mistake spiral out of control? ♻️Repost to help others ➡️Follow Kerim Kfuri for philosophy & leadership insights

Been diving deep with cannabis retailers on inventory. Some observations: - Most buyers overstock out of fear of running out of popular items, but this often leads to overestimating demand for slower-moving products. Spreadsheets built on historical data frequently miscalculate stock needs because of formula assumptions that over-solve for out-of-stocks. - 70% of products sell less than 1 unit per day; 20% sell less than 1 unit every 14 days. Over-stocking is a much bigger financial strain than out-of-stocks for most stores. On average, stores carry 52 days of supply (notably stores with large wholesale and reciprocity agreements have over 100 days of supply). - Inventory overages lead to frequent discounts, and consumers typically just switch to another product when an item is out of stock. While the financial impact of out-of-stocks isn’t as severe as overstocking, the fear still drives decision-making. - Buyers often know their fast movers but overestimate product velocity, and few can quickly name what hasn’t sold in the last week. - This fear of out-of-stocks is driving billions of dollars in problems, from inventory debt to rising working capital. - The emotional weight of wanting to avoid disappointing consumers is real, and it’s a huge factor driving these decisions. But we need to figure out a way to balance that fear with smarter inventory management. Pic for the algo

Is Your Inventory Out of Control? If your operation is struggling with: - Stockouts or overstock - Inventory inaccuracies - Poor inventory flow - Unexplained losses - High carrying costs You’re not alone — but there are proven techniques that can help. Here are 5 continuous improvement methods manufacturing and distribution operations use to get inventory back in check: Gemba — Go to where the work happens. Observe problems at the source. Kaizen — Make small, continuous improvements to eliminate waste. Poka-Yoke — Mistake-proof your processes to prevent inventory errors. Kanban — Use visual systems to control stock levels and workflow. 5S — Create a clean, organized, efficient inventory environment. Have you tried any of these techniques in your operation? What inventory challenges are you working to fix right now? Drop a comment — or connect with me if you’re looking for ways to drive real operational improvement. #InventoryControl #LeanManufacturing #SupplyChain #Distribution #ContinuousImprovement #5S #Kanban #Kaizen #Gemba #InventoryAccuracy

Deadstock is a silent killer. Here’s how to fix it. At Chubbies, we lived and died by inventory efficiency. But early on, we learned the hard way: Deadstock isn’t just excess inventory—it’s locked-up cash, wasted storage costs, and a slow bleed on margins. If you run a $20-$50M brand, you already know how quickly unsold products accumulate. A seasonal bet misses. A SKU doesn’t hit—consumer demand shifts. You’re sitting on thousands of units, hoping discounts will move them. And these products are not fine wines—they don’t age well. Here’s how we solved it: 𝟭. 𝗦𝗽𝗼𝘁 𝗶𝘁 𝗲𝗮𝗿𝗹𝘆 Track sell-through rates and aging inventory at the SKU level. If an SKU isn’t moving at the pace you expected in the first 30 days, your system needs to notify you, and you need to take action. It’s now a liability. 𝟮. 𝗧𝘂𝗿𝗻 𝗶𝘁 𝗶𝗻𝘁𝗼 𝗰𝗮𝘀𝗵 Be proactive. Run flash sales, try unique bundling promotions, or offload to discount channels as a last resort. The cash from these products will feed your future product winners! 𝟯. 𝗡𝗲𝘃𝗲𝗿 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗺𝗶𝘀𝘁𝗮𝗸𝗲 𝘁𝘄𝗶𝗰𝗲 Audit past buys, tighten demand forecasting, and set hard rules for re-ordering so you don’t repeat bad inventory bets. Deadstock isn’t just a storage & operational issue—it’s a profitability killer. Fix it early, or watch it compound. What’s your deadstock horror story? Let’s talk👇 #deadstock #inventorymanagement