In addition to Ldeally your business should have enough inventory to meet customer demand and enough safety stock to tide you over until you restock but not so much that youre left with empty inventory. To avoid overstocking you must optimize your inventory levels. Try Calculate safety stock levels economic order quantity EOQ and reorder points for each SKU so you dont accidentally reorder inventory too early. Improve your demand forecasting techniques so you stock more products in high demand and fewer products that are unpopular.
Adopt an inventory
Management system or IMS that Hong Kong Phone Number List tracks the movement of your inventory through the supply chain and that provides visibility into holding costs inventory turnover and sales trends. . Get rid of dead stock Dead stock inventory that is obsolete expir defective or unsellable is a common cause of increas carrying costs. Moving it out of your warehouse is critical to rucing holding costs and will make room for more profitable inventory. If possible try to get rid of unus items in a way that allows you to recoup some of your losses. Selling unus items or combining them with popular items will recoup some of your initial investment and including them as free gifts with orders will at least add excitement and value to the unboxing experience for customers.
You can donate unus
Items for inventory writeoff. . Ruce Hong Kong Whatsapp Number inventory turnover time Keeping inventory moving along your supply chain is key to minimizing holding costs. products that traditionally have high turnover and carrying fewer slowmoving products you can also try purchasing stock in smaller quantities more frequently to facilitate more turnover. If turnover is slow due to a lull in sales offering promotions and deals is a good way to spark new interest and move out older inventory. Also read Periodic Inventory System Definition.
