How to Overcome Inventory Management Challenges: Supply Chain Complexity

3 min read

Inventory Management Challenges


Common Challenges of Inventory Management

We all know that marketplaces are constantly changing. For starters, the international trading landscape is more uncertain than ever. In addition, eCommerce is driving increased competition from traders across the globe, both large and small. And with customers being more demanding and more vocal about their experiences, the need to provide an exceptional service at top speed is becoming the norm.

Small- and mid-sized businesses (SMBs) must respond to external market pressures and are therefore up against a multitude of inventory management challenges. These challenges include the need to:

In this three-part blog series, we’ll address each of these challenges in turn. This post will look at the inventory management challenges surrounding supply chain complexity.

Inventory Management Challenge 1: Supply Chain Complexity

Bestandsminderung Tablet mit CloudThe complexity of the supply chain network has increased with globalization. Many businesses rely on a vast network of manufacturers, suppliers, distributors, intermediaries and retailers to source, distribute and sell their products. This leads to a number of stock management challenges:

  • Longer/less reliable lead times from global suppliers
  • Increased difficulty tracking inventory along the supply chain
  • Issues tracking and optimizing stock across multiple warehouses

Many companies are turning to inventory optimization tactics to overcome these issues. Here are four inventory optimization strategies to help overcome supply chain complexity:

Inventory Optimization Strategies

1. Take lead times into account when placing orders

In order to prevent stockouts, purchasers need to understand their suppliers’ lead times and factor these into their reordering schedules. It’s a good idea to have a supplier calendar and keep it up to date with national holidays and highlight peak periods when lead times may be longer.

Inventory optimization software, such as EazyStock, will automatically take supplier calendars into account when creating order proposals, so you don’t have to worry about running out of stock due to protracted lead times or time constraints.

2. Carry safety stock

You can carry safety stock to buffer any supply disruptions. Make sure you use a safety stock calculation that considers lead time variations so you have enough stock to cover any late deliveries.

3. Improve item visibility with automated inventory control systems

Safety Stock Warehouse SystemIf you haven’t already, you need to consider investing in automated inventory control systems. They will remove manual processes and improve the efficiency of your inventory management practices.

Don’t get left behind – an Enterprise Resource Planning (ERP) or Warehouse Management System (WMS) provides visibility of your inventory at each stage of your supply chain. Linked with barcode technology, you can also access real-time data about each SKU in your warehouse. With accurate inventory levels it becomes much easier to make informed operational decisions about what you need to stock and when you need to order it.

4. Consolidate multi-warehouse stock

Companies with multiple warehouses can also benefit from investing in inventory optimization software that supports multi-location stock management. This will automatically suggest redistributing excess inventory from one warehouse, where demand for a product maybe low, to another, where it’s much higher. This ensures you use up stock you already own prior to placing new orders. In addition, you’ll find you can use valuable warehouse space much more efficiently.


SMBs can easily unravel complex inventory management challenges by breaking them down into smaller issues and going back to basics. To do this they need to address demand and supply variables that are at the heart of every supply chain. But most ERP systems lack the dynamic capabilities to support. Instead inventory management teams often resort to spreadsheets that are time and labor-intensive.

If this situation sounds familiar, contact EazyStock to find out more about inventory optimization software. EazyStock is a cloud-based, ERP add-on that helps you overcome the challenges of traditional inventory management methodology and move towards effective, automated inventory optimization.

Read about other inventory management problems and their solutions in this three-part blog series:
Challenge no. 2: Business growth
Challenge no. 3: Improve stock availability

Whitepaper - 6 Inventory Control Techniques for Stock Optimization


Tracey Baker, Marketing Manager

3 min read

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