The Business Challenge
For retail companies, inventory is the largest incessant investment today, so getting the most out of this investment is important for success. Yet inventory optimization in an omnichannel world presents a whole new set of predicaments for retail players. Though retail businesses are adopting innovative approaches to enhance their service levels, they fail to devise effective strategies to make it profitable.
Quantzig’s supply chain solutions follow the critical path method for managing and overcoming supply chain disruptions which can otherwise lead to huge financial losses. Request a FREE proposal to gain better insights into our portfolio of services.
Better inventory management plays a crucial role in improving customer satisfaction levels which, in turn, helps retail companies in the long run. Inventory optimization is the easiest proven path to significant cost savings and increased revenue for retail companies. At Quantzig, we offer inventory optimization solutions that help businesses to strike the perfect balance between inventory investments and service levels. Also, it empowers them to build an optimal inventory system that is more connected, intelligent, and scalable.
To combat the growing threat posed by online retailing, a leading retail company in Norway was looking at a holistic approach to inventory management to manage their warehouse at multiple locations, deal with overstocks and out-of-stock scenarios, and overcome inventory risks.
Our inventory optimization experts help leading companies identify and measure the risks in the inventory. Get in touch with them right away to know how.
Solutions Offered and Value Delivered
Quantzig’s inventory optimization experts adopted a comprehensive approach to understanding the pain points in the client’s supply chain network. They leveraged advanced algorithms to optimize stock levels and provide better control over the inventory. Furthermore, this helped the client to save money, improve their customer service levels, and boost customer satisfaction significantly.
Our inventory optimization solutions also empowered the client to:
- Reduce inventory levels by 25%
- Improve cash flow and return on invested capital
- Enhance production cycles, visibility, and agility across all points of supply chain
- Boost supply chain efficiency by 18%
Quantzig’s supply chain solutions empower companies with real-time data visualization dashboards to make accurate decisions and gain better control over the inventory system. Request a FREE demo below to know more.
Working capital is an essential metric across industries that helps in assessing the financial health of any business in the long-term. It can be measured by comparing its current assets to its current liabilities. Also, it indicates the level of short-term liquid assets after short-term liabilities are paid off. Effective working capital management ensures adequate cash flow is maintained by businesses, helping them meet their short-term undertakings. If a company fails to manage its net working capital effectively, it can result in cash flow problems such as liquidation of assets, legal troubles, and potential bankruptcy. Therefore, effective working capital management should be one of the top priorities of businesses. Here are some of the effective tips that companies can follow to improve their working capital management.
Working capital management can help companies in enhancing the visibility of key-value KPIs such as turnover ratios and cost benchmarking. Want to know how? Get in touch with our experts right away.
Tips to Manage Your Working Capital Effectively
Tip #1: Optimize inventory and manage procurement
Inventory management plays a crucial role in making the most of your net working capital. If stocks are in excess, this can impact the cash resources of any business negatively, whereas, insufficient stock can lead to loss of sale and damage relationships with customers. One of the major challenges that companies face is having optimum levels of stock. Also, companies should focus on establishing better communication between departments to avoid unnecessary levels of stock. All these measures can ultimately help in improving their approach to working capital management.
Tip #2: Pay vendors on time
The analysis of working capital levels shows that companies that pay on time establish better relationships with their vendors. Also, such companies can crack better deals, discounts and payment terms. It acts as a counter-intuitive approach to working capital management. If suppliers are happy, it can help in saving costs significantly in the long run by securing larger discounts in bulk orders and maximizing the credit period.
Quantzig with its expertise in working capital solutions helps its clients to satisfy both maturing short-term debt and upcoming operational expenses. Request a FREE proposal to gain in-depth insights.
Tip #3: Make informed financing decisions
Managing working capital enables companies to make better, strategic investment decisions. This can help in driving operational performance and efficiencies. On the other hand, unavailability of sufficient operating liquidity due to unpaid invoices or assets being tied up in the inventory can impact cash flow heavily. Therefore, to improve working capital management informed decision making is very important.
Our supply chain analytics solutions help companies optimize working capital and boost bottom line results by improving their supply chain efficiency. Request a FREE demo to know more.
Tip #4: Manage debtors effectively
For effective working capital management, it is crucial to managing expenses. For this, businesses need to reassess their credit terms with debtors to make sure they are not given too big a window for payment. Companies should necessarily review credit terms to ensure that the level of credit being offered to debtors is coordinated with its cash flow needs.
Are you looking for more useful tips to manage your working capital? Request for more information below.
Get More Info:
5 Signs You Need to Move to a Robust Inventory Management System
Multi-Echelon Inventory Optimization: Top 3 Challenges & Benefits
LONDON: Quantzig, a leading analytics services provider, has announced the release of their new storyboard on the benefits of leveraging analytics for supply chain and inventory management. Each of these downloadable articles explains how analytics solutions can help companies to optimize their inventory, analyze their real-time supply chain metrics, improve cost structure, and track inventory levels effectively.
Companies across industries are facing critical challenges associated with the volume of inventory transactions, the complexity of the analysis needed to identify trends in inventory use, sales, and forecast demand. Leveraging the use of analytics in supply chain and inventory management can help companies to make well-informed business decisions, optimize inventory, improve the bottom line, enhance supply chain flexibility, and optimize resource usage.
Quantzig’s analytics solutions have helped companies to identify bottlenecks and supply chain risks by offering insights into real-time data. Below, we have summarized some of Quantzig’s free resources and have also highlighted ways in which analytics in supply chain and inventory management has helped businesses to excel in the competitive marketplace.
A proper inventory management system can help in optimizing logistics, improving order fulfilment ratios, and increasing operational efficiency. Request a FREE demo to know how our solutions can help.
#1: How leveraging analytics help in inventory management? Reducing inventory holdings is a daunting task for businesses but adopting the right inventory optimization strategy can make this task easy. Quantzig’s analytics solutions take warehouse inventory management to the next level through sophisticated algorithms and customized dashboards that make stocking recommendations and offer a holistic approach to assess various demand and supply signals within the supply chain. This downloadable free resource offers actionable insights into essential steps to build an inventory optimization strategy.
#2: What are the best practices for warehouse inventory optimization? Monitoring and maintaining optimal levels of warehouse inventory seems to be a difficult task for businesses. However, businesses that succeed in doing so have been able to boost customer satisfaction rates, drive sales, and set an optimal capital cost structure. This free resource discusses some of the best practices that determine the most successful approaches to the complex process of inventory management. Also, it highlights some of the essential factors that evaluate the maturity of the processes associated with warehouse inventory management.
#3: Transformational impacts of analytics on supply chain: Understanding digital customer behaviors and market trends amidst data explosion have become very challenging for businesses. But leveraging analytics can help in dealing with such challenges head-on by offering valuable insights into supply chain data. Incorporating analytics can impact both the top and bottom-line business results positively. A modern and digital supply chain network backed by the power of analytics can improve inventory management and the entire supply chain operations. Download this free resource to know more about the significant impact of analytics on the supply chain.
Want to know how our inventory management solutions can help you optimize the tracking of inventory and materials across the supply network. Get in touch with our experts.
In a highly competitive market driven by digitally empowered customers, supply chain analytics turns out to be a golden key to stay ahead of the curve. An inefficient supply chain leads to critical challenges such as lack of innovation, lack of accountability, and reduced visibility. At Quantzig, we help you navigate this competitive marketplace through our modern supply chain analytics solutions.
New technologies coupled with skyrocketing datasets can impact the supply chain consistently. As a result, companies find it difficult to have a flexible and transparent supply chain. Also, ensuring compatibility throughout the supply chain is not an easy task for organizations. But supply chain analytics can help deal with all these issues effectively. It can offer actionable insights into the potential risks in inventory management and mitigate them by analyzing scenarios. Additionally, supply chain analytics can assist in organizing the reverse logistics process and make supply chain management better. These are only some of the many solutions that big data analytics can offer to your supply chain. But do you know which particular supply chain analytics solution can suit your organizational needs? Quantzig can help.
Download a free copy of this article on leveraging supply chain analytics to improve inventory lifecycle and gain in-depth insights into how analytics solutions can help you in inventory management.
Quantzig’s supply chain analytics approach is not a one-stop solution for all, but a solution that is customized for your organization. We provide a framework that comprises different supply chain analytics solutions and helps in solving end-to-end supply chain issues. We promise to offer a structured approach in defined steps that starts right from analyzing the current scenario to the execution of specific solutions that can vary from inventory management to supply chain management to logistics optimization.
- Learn how to reduce inventory costs through smart demand sensing
- Gain comprehensive insights into ways to improve production plan and inventory optimization with the help of supply chain analytics
- Establish a consistent approach to promote cross-functional collaboration
- Understand how a proper supply chain analysis framework can empower sales and operation execution
- Learn how supply chain analytics can help you measure cash to cash cycle time
- Comprehend how supply chain analytics solutions can enhance the functioning of transport logistics
Quantzig has substantial data analytics experience in the supply chain landscape by working with our clients across the globe with end-to-end data modelling capabilities. Our supply chain framework comprises solutions that help our clients in prudent decision making. Our comprehensive approach to analytics projects ensures that we drive any organization’s competitive readiness and success and deliver crucial business insights within time and budget. We always aim to bring together the best combination of analysts and consultants to maximize business outcomes and drive continuous market excellence.
Warehouse Inventory Management: Top 3 Best Practices
Importance of Inventory Management
Inventory management techniques can help you manage your business’s inventory and stock items; thus, helping you track where your assets are and what they’re worth. Inventory management techniques also analyze your business’s inventory demands and can even automate your ordering process. The real importance of management techniques has been realized by companies functioning in industries such as retail, food and drink, production, healthcare and many more. Implementing effective techniques can help advance your management process, providing transparency and efficiency to a complicated and complex system. Effective inventory management techniques can prevent:
- Storage costs
Inventory Management Techniques
What is inventory management?
Simply put, inventory management refers to the effective handling of the inventory or stock that the company holds. Inventory management deals the flow of goods from the manufacturers to warehouses and from these facilities to ultimately the point of sale. Retail inventory management is an element of supply chain management and includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale. Rightly managing the inventory can help businesses have the right products in the right quantity on hand and avoid products being out of stock and funds being tied up in excess stock.
In this blog, we have discussed the techniques and best practices of inventory management for small business concerns:
Inventory management for small business
Undertake stock audits
Even if businesses own a good retail inventory management software, it is essential for these companies to undertake physical stock audits at regular intervals. This helps ensure that the company’s physical stock count matches the inventory count in the system. One of the most popular techniques of inventory management for small business includes annual, year-end physical inventory that counts every single item and ongoing spot-checking, which can be most useful for products that are moving fast or have stocking issues.
Fine-tune forecasting methods
Accurate forecasting is a vital element of inventory management for small businesses. The forecasted sales figures should be largely based on factors such as the historical sales figures, predicted economic growth, market trends, and the promotions and marketing efforts involved.
Cloud-based stock management software
It is advisable for small businesses to use a retail inventory management software with real-time sales analytics capabilities. Having a cloud-based stock management software also helps employees to access data in real-time and on the go. Such advanced software also ensures that the company’s stock levels are automatically updated and adjusted as when a sale happens, eliminating stock-out or stock overflow situations.
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One important rule of stock management is to never compromise on the quality of the product. It could be as simple as assigning a checklist to employees to do a quick examination during stock audits that includes signs of damage and correct product labeling. If damaged products reach the retail shelves or the final customers, chances are the brand name could be hampered.
Drop shipping method
Drop shipping is a technique of retail inventory management for small business; wherein, businesses can sell products without actually holding the inventory. Instead, a wholesaler or manufacturer is put in charge for carrying the inventory and shipping the products when a consumer buys from your store. This way, companies do not have to worry about inventory holding, storage, or fulfillment. Several companies venturing into online platforms adopt drop shipping methods. This supply chain fulfillment strategy can be adopted by many types of businesses across all industries.