Effective stock replenishment methods

Effective stock replenishment methods can have a real positive impact on your business in terms of ensuring stock availability, reducing supply chain risk and enhancing profitability.

Stock replenishment planning, however, is a tricky business. It’s a balancing act to order the right levels of stock to cover your demand, without risking a build-up of excess and obsolete items. At the same time, supplier lead times need to be factored into reorder point and reorder quantity calculations, so there’s always enough inventory to fulfil customer orders.

The secret to achieving great stock replenishment is optimising inventory levels at each stage of the supply chain. Inventory optimisation is the art of achieving high service levels (stock availability), while reducing inventory investment. This is done using statistical demand forecasting and advanced supplier management techniques, whilst dynamically adjusting stocking rules and inventory parameters.

Download our free eBook ‘How to Overcome Common Inventory Replenishment Challenges’ to delve into the detail.

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Effective stock replenishment processes

Here’s five quick inventory optimisation techniques to help improve your stock replenishment processes.

  1. Replace your basic 30 day rolling average forecasting calculations with a statistical demand forecasting model.  More advanced forecasting will factor in trends, product lifecycle stages, seasonality, demand volatility and qualitative factors. You can then ensure you’re stocking items that are in demand from customers.

  2. Take action when products begin to reach the end of their product lifecycle. Monitor demand more closely and find ways to reduce stock levels before items become obsolete. Possible strategies include reducing order quantities and safety stock or introducing promotions and pricing tactics.

  3. Use an inventory classification model, such as ABC analysis, to focus on items that are most important to your business. Adjust stocking polices for each inventory group, optimise inventory levels without risking stockouts of your most important lines.

  4. Use-up excess stock across your supply chain before ordering from suppliers.

  5. Weigh up the unit-cost savings of placing bulk orders against the impact on your inventory turnover. Carrying inventory costs money and ties up working capital. And, if the items you’re buying in bulk aren’t best sellers, they could end up as excess or even obsolete stock at a significant cost to the business.

To read more about how to achieve effective stock replenishment processes, download our free eBook.


 

Download your FREE e-Book: 

How to Overcome Common Inventory Replenishment Challenges

In our free eBook we show you simple stock replenishment methods and share ways to improve your replenishment processes and strategy.

Find out more about:

  • Simple stock replenishment methods
  • Factors that influence reorder quantities
  • The Economic Order Quantity formula
  • The benefits of using inventory optimisation software to automate stock replenishment processes

 

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Improving stock replenishment methods with automation

More and more inventory managers are turning to inventory optimisation software to optimise stock levels, so they can meet market demand, without over-investment.

EazyStock will:

  • Use statistical demand forecasting which factors in trends, product lifecycle stages, seasonality, demand volatility and qualitative insights.
  • Dynamically classify inventory items and adjust stocking policies to deliver target service levels with the lowest possible inventory investment.
  • Automate reordering processes to improve efficiency and ensure the right products are in the right place at the right time.
  • Dynamically manage supplier lead times and factor them into replenishment calculations.

This best-in-class software offers sophisticated, dynamic functionality as part of an affordable SaaS subscription. EazyStock is easy to plug into your ERP and delivers actionable inventory cost reductions and service level improvements within weeks of implementation.

 

 

Improve stock replenishment with EazyStock inventory optimisation software

  • Demand Forecasting

    Demand forecasting

  • Inventory Optimisation

    Inventory Optimisation

  • Automated replenishment

    Automated replenishment

  • Seasonality management

    Seasonality management

  • Promotion management

    Promotion management

  • Multi-location planning

    Multi-location planning

  • Supplier management

    Supplier management

  • KPIs & reporting

    KPIs & reporting

Why EazyStock?

Ensure stock availability

Make sure you always have the right products on the shelf to prevent stock outs and delight your customers.

Lower inventory levels

Get rid of excess and obsolete stock, freeing-up working capital for investment elsewhere in your business.

Accurate replenishment

Automatically calculate safety stock levels, re-ordering points and order quantities to ensure optimised inventory levels.

Improve efficiency & save time

Ditch the manual spreadsheets and save time that can be spent on strategy and innovation.

Optimise demand forecasts

Utilise advanced algorithms to track product demand, accounting for life cycle stages, trends and seasonality variances.

Automate re-ordering

Produce automated order proposals to process in EazyStock or send back to your ERP.

Be smarter with suppliers

Place orders more cost-effectively by considering suppliers’ delivery schedules, lead times, discounts and costs.

Get a fast ROI

Benefit from rapid ERP integration and get up and running fast with a system that’s easy to deploy.

Trusted by growth-driven companies

“Using EazyStock has given us immediate insights to make informed decisions and we’ve significantly improved our demand forecasting. Our service levels have gone up and we’ve seen positive results after only a few months”.

Jeroen van Douveren, Executive Director at L. Ten Cate

 

Visit our resource centre or blog for more best practice and tips on improving your stock replenishment, planning and management.

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