Logistics Cloud Co. > About Us > Blog > Inventory > Inventory Management is Hard!
14 May 2024 Posted by: Andrew Clark Inventory

Inventory Management is Hard!

Inventory management is hard. It costs you money, time, and effort to manage your inventory well. BUT…

It costs you a lot more to manage it badly.

Let me first divide the inventory management problem in two:
1. Managing how much stock to hold and where to hold it.
2. Managing the physical stock at a location

These are two very different problems which require different techniques to manage them at different levels of scale and maturity. Businesses get into difficulty when they have a mismatch between their scale and the maturity level required to manage the inventory at that level. Higher maturity levels of inventory management also require more data and more discipline which is why it becomes difficult.

If you are suffering the impact of this mismatch the signs will be obvious:
– Lost or missing stock
– Unexpected stock outs and service failures
– Discounts and write offs of excess or obsolete stock
– Slow order fulfillment
– Picking and shipping errors
– High warehouse operational costs compared to sales
– Running out of room in your warehouse

What should you do?

If you’re struggling with inventory planning or warehouse management and want to talk to someone, I’m here to help and you can book a call with me https://calendly.com/lcc-andrew