Safety stock, sometimes called buffer stock, is important at all stages of the supply chain. Safety stock is the extra level of stock (raw materials or finished goods) that businesses carry to mitigate the risk of run out, due to uncertainties in supply or demand. For example, manufacturers may carry...Read more

For many years, inventory-holding businesses have used stock days to measure their inventory management activities and work out if they’ve got the right amount of stock to fulfill orders. In this blog post we’re going to explain why this methodology is now unsuitable for today’s trading environment and share our...Read more

A common way to calculate inventory reorder points is to use a formula that focuses on ordering a specific number of days of stock. These calculations are done manually, often in excel, and the data is then input into an ERP system, so it has the relevant parameters to create...Read more

For businesses that carry non-perishable goods it’s tempting to order and carry surplus stock to help meet market demand and hit order fulfilment targets. In some circumstances carrying excess stock can be a good thing: having all items in stock helps avoid costly back orders and keeps customers happy. However,...Read more

Any organisation that holds stock is up against a multitude of inventory management challenges. For starters, the international trading landscape is more unstable than ever. In addition, customer needs are constantly changing and e-commerce is driving increased competition from traders across the globe. Manufacturers, suppliers and retailers all have lots...Read more

In our four-part-blog series on coronavirus and its impact on inventory management we’ve so far looked at how to overcome Covid-19 demand forecasting challenges and improving inventory planning during the pandemic. Now we’re going to focus on mitigating the risks of supply chain disruption as we move out of lockdown...Read more