The effects of COVID-19 on global supply chains have been far reaching. The shipping industry in particular has been hit due to the displacement of containers blocking ports and causing global shortages. Businesses around the world continue to be affected by longer lead times, which are made worse by global lockdown regulations and staff and truck driver shortages.
Consequently, there’s also been an effect on shipping costs as container prices surged in 2021 due to limited availability and increased demand. These higher costs have impacted the profit margins of many businesses.
Even in 2022, the same issues linger. While some companies are repurposing containers or reusing older models, ports in the US still have backlogs and congestion as well as staff shortages. So it’s going to be a while before things get back on track.
With the price of containers so high, and their availability so scarce, it’s critical that you make every shipment of goods count. This means ensuring you never ship half-full containers or fill up with items that are not business-critical.
It’s important that you fill every container with stock items that you’re confident you will sell or need in upcoming production runs.
However, if you have available space in your containers, how do you know what to fill it with? Which products will be the most beneficial to have in your warehouse?
When a container is below its maximum capacity, it’s tempting to fill it with ‘more of the same’. But what if you simply don’t need those items? It makes much more sense to look at your upcoming demand and add these stock items to the order instead.
However, calculating future stock levels and demand forecasts manually can be very time-consuming, and if your forecasts and/or stock data are inaccurate, you run the risk ordering the wrong stock. This could lead to stockouts of some items while others could sit on the shelves for months, absorbing much-needed capital.
Plus, the longer you take to place the container order, the more chance you will lose your spot and incur further delays.
Automated inventory optimization software like EazyStock can save you time and reduce the pain of manual calculations.
When a container is below capacity, you can simply ask EazyStock to recommend items from the same supplier with actual upcoming demand to fill up the order, instead of items selected at random or by ‘guesswork’. This way, you’re ordering stock that you know you will soon need instead of items that could lead to excess stock levels.
You can also use the order fill-up functionality to set targets for minimum value, number of units or maximum weight.
Ordering the right stock items can save you money, as your business will benefit from having items in stock that you actually need and not tying up capital.
Having the right stock in place can help you maintain high levels of stock availability so you can fulfill customer orders and keep them happy.
Optimizing the space in every container could lead to fewer shipments in the long run. That’s better for your carbon footprint and your bottom line.
By automating the process, you can fill up your order in a few clicks, giving you time to focus on other areas of stock management.