What is the Common inventory challenges today in supply chain ?

What is the Common inventory challenges today in supply chain ?

There are dozens of factors that affect your ability to manage your inventory. Common inventory management problems include:

Low cash flow: Holding too much inventory ties up cash that could be used in other areas of the business.

Need to bring inventory in-house: Using a third-party for your supply chain operations makes sense for some businesses. However, operational changes or business growth sometimes require you to reduce or eliminate outsourcing. Adopting best practices for inventory management will allow you to oversee your supply chain efficiently.

Stockouts or overstocking: If you have low visibility or inefficient inventory control practices, poor demand forecasting can lead to too much or too little stock on your shelves. This can lead to lost revenue.

Adding new products: Adding new products to your warehouse shelves without a system in place to locate and organize your stock can result in confusion and disorganization. Using a warehouse inventory management system, including barcoding and scanning, reduces error and increases efficiency.

Little to no reporting: If you aren’t tracking your sales and operations, you’re missing out on critical data. Good inventory planning relies on up-to-date information in order to make accurate forecasting decisions.

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