A young child can’t get her medicine; a customer goes elsewhere because of a backorder; manufacturing production ceases because of a lack of raw materials; overhead grows as unsold products need to be housed in larger facilities, money is lost if products perish or expire due to overstock. A headache, yes, and perhaps life threatening or “business threatening.”
Inventory Supply is no simple task, but it’s one that can be made simplier by creating an exacting plan that battles the headaches and symptoms of overstock and stockouts. On demand monitoring and mananagement systems are one key step, but creating a plan with short-term and long-term goals that compliment and aide one another is critical to any fulfillment framework.
Let’s have a look at some of the symptoms of overstock and stockouts, and a short three-step plan to start building an end-to-end supply chain fulfillment framework.