Tag: Inventory Optimization

demand forecasting

Is an Effective Retail Inventory Management the New ‘Holy Grail’ for Small Businesses?

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. Request Proposal

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.Contact US

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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Quality control

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 aRequest Proposalre 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.


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Wholesale Food

Quantzig’s Inventory Optimization Helps a Wholesale Food Distributor to Increase Profit Margins By 35%

What the Client Wanted

Efficiently track inventory levels with improved visibility into the incoming and outbound deliveries.

The Outcome

Simplified the end-to-end tracking of the products from order to delivery.

Summary of the Wholesale Food Distribution Industry

The global wholesale food distribution industry comprises of over 35,000 establishments that aim at distributing food and related products on a wholesale basis. The industry is witnessing promising growth, characterized by the rising global population and the growing demand for food due to the rising disposable income. Request ProposalThe growth of the wholesale food distribution space can also be attributed to the four I-engines; including internationalization, integration, innovation, and implication.

Industry Challenges

Increasing labor and transportation costs: The recent economic slowdown has greatly affected the transportation and labor space in terms of the fluctuations in fuel prices. As a result, organizations in the wholesale food distribution space are facing relentless pressures to cope with increasing labor charges while maintaining consistency in the products being offered. Besides, organizations should also ensure the need to maintain compliance requirements with the utmost quality in the products. 

Increasing demand for organic products: In the wholesale food distribution space, the food products are sold in a wholesale basis, but when it comes to the organic products, the shelf life of the products is affected. With the increasing demand for organic products, it becomes crucial for organizations to maintain better packaging techniques to retain the shelf life of the organic products.


About the Client

The client – a leading wholesale food distributor based out of India – with over 100 business bases spread over 15 countries.

Client’s Challenge

The client was facing challenges in maximizing the ROI as the distribution and retail markets are volatile. Additionally, over 35% of their inventory was stuck in non-performing stock keeping units, which contributed to less than 5% of their overall sales. As a result, the client wanted to devise effective strategies that would help them handle and better manage their inventory levels.


Summary of our inventory optimization engagement
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Business Impact

The inventory optimization solutions offered by Quantzig helped the wholesale food distributor to augment their inventory by supporting them in identifying and decommissioning the non-productive stock. The inventory optimization experts also helped the client develop business cases including the estimated savings associated with each opportunity. Additionally, implementing SKU rationalization techniques for inventory management helped the client increase their profit margins by 35%.

Inventory Optimization Solution Insights

Today, it is essential for wholesale food distributors to identify and devise effective strategies that help re-deploy unbalanced inventories. Adopting Quantzig’s inventory optimization solution brings about improvements in cost efficiency by maximizing profit margins. Inventory optimization coupled with predictive analytics capabilities can better manage logistics to gain in-depth insights into the supply chain network.


To know more about how our inventory optimization engagement helped the wholesale food distributor to gain insights into the latest food and beverage industry trends

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Real World Evidence

Pharmaceutical Retailing Client Leverages Inventory Optimization Solution to Optimize Service Levels for Different Product Categories

pharmaceutical retailing

LONDON: Quantzig, a global analytics services provider, has announced the completion of their latest inventory optimization for a pharmaceutical retailing client. The pharmaceutical retailing industry is concerned with businesses that engage in retailing prescription drugs or patent medicines, toiletries or cosmetics, and prescription medicine dispensing. The pharmaceutical retailing industry is expected to show a significant growth trend in the years to come, as the average age of the consumer for this sector is increasing rapidly. With the rise in the need of the aging population for enhanced healthcare and prescription, there is a constant growth in the customer base of pharmaceutical retailing.

 

“Inventory optimization solutions can help businesses eliminate out-of-stock situations, improve efficiency, and curtail inventory costs. Furthermore, with the help of the solution, companies can gain optimized service levels for different product categories. Additionally, companies can better define processes and monitor and manage high-risk categories.” says an expert at Quantzig.

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The solution offered helped the pharmaceutical retailing client devise advanced processing capabilities to estimate product redeployment between stores and adopt a tiered strategy for providing services. The client was also able to make changes to staffing, fulfillment, and delivery processes to centralize products and inventories with the help of the solution provided.

Additional Benefits of the Inventory Optimization Solution

  • Improve working capital efficiency and reducing inventory while maintaining service levels
  • Reduce inventory costs by carrying the right product at the right time to the right place.
  • To know more, request a proposal

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Inventory Management

Top Tips for Better Warehouse Inventory Management

From the outside, warehouse inventory management seems fairly straightforward. Nothing more than receiving and arranging the inventory so that it could be retrieved quickly when needed. However, inventory management is a lot more than just arrangements. Managers have to maximize productivity, save time, and maintain an optimal level of inventory to improve the profitability and efficiency. The use of RFID tags, barcodes, inventory management systems, and IoT have greatly altered the efficiency of inventory management systems. However, there is still a lot toFree demo be done if a company wants to optimize inventory. Here are some top tips that’ll help you to improve your warehouse inventory management.

Maximize vertical space

Space costs money, the more inventory a company holds, the more they have to pay in terms of real estate and utility cost. However, keeping a lower level of stock is not an obvious solution, as it may impact the customer experience. Consequently, a warehouse has to utilize the available amount of square footage by optimizing layouts. One easy way to increase space is to make better use of the vertical space in your facility without neglecting layout optimization best practices. One useful tip is to place items that move less frequently in harder-to-reach vertical storage areas.

Re-evaluate lead times

Lead times are crucial in any retail and manufacturing sector and have a direct impact on inventory management. Lesser the lead time, lower safety stock of a particular product is required. Lead time should include supply delay and reorder delay. Also, when a company sources from an international supplier instead of local or regional ones, it affects the lead time. It is essential to continuously readjust the lead time whenever such changes take place to optimize the supply chain.

Identify your KPIs

Advancements in modern technology have paved the way for advanced warehouse inventory management, including effective data management and analytics capabilities. To measure performance accurately, managers require clearly defined objectives or KPIs. Managers may not be able to focus on improving each and every KPI, and focusing on one may cut a slack for others. For instance, reducing shipment errors and bringing the operational cost down are conflicting in nature.

Supply chain partner selection

A company’s operational performance is only as good as their supply chain partners. The relationship that you built with suppliers, manufacturers, or wholesalers is crucial. A good relationship with the supplier ensures on-time delivery in good condition. A great response time can help reduce the lead time after all. Also, a great relation often means suppliers can be flexible enough for your needs and having to spend less time back and forth in negotiations and contracts.

Using cloud-based software

The shift towards cloud-based platforms is not a fad, it’s a long-term trend that’s here to stay. This is especially true for a global supply chain who has operations all over the world so that they can collaborate and remotely access all important inventory data. A cloud-based system updates inventory amounts, purchase order, and other information in real time. It also ensures that all the data stays intact even when the physical infrastructure of the company faces the problem.

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Inventory management

Personal Care Retailer market analysis – How inventory optimization solutions helped a personal care product retailer to optimize the physical inventory levels

Inventory OptimizationLONDON: Quantzig, a global analytics services provider, has recently completed their latest inventory optimization solution for a personal care product retailer. The growth of the personal care product segment has boosted the revenues of the retail sector. The rising consumption of personal care products can be owed to increasing emphasis on beautification and personal hygiene. Customers are demanding that the use of chemical substances in the product be reduced leading to increased R&D activities.

“The inventory optimization solution offered by Quantzig assisted the personal care retailer to accurately keep track of the products to better serve the customers. Through an effective inventory management solution, businesses can minimize inventory write-offs and overstocks and increase the overall supply chain efficiency.” says an industry expert from Quantzig.

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The inventory optimization solution assisted clients to efficiently track inventory levels with better visibility into the incoming and outbound delivery. By following industry best practices, the client was able to curtail data entry errors, increase productivity, and lower operational costs. Consequently, they were also able to reduce manual physical inventories and lost sales track due to inaccurate stock levels, inventory write-offs, and shrinkage.

Additional Benefits of the Inventory Optimization Solution

  • Enable to keep track of inventory, orders, and vendors
  • Implement industry best practices to reduce data entry errors
  • Efficiently track inventory levels with better visibility into the incoming and outbound delivery
  • To know more, request a free proposal

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Inventory management

The Best of Inventory Management Techniques – Optimizing Stock Management

Inventory is one of the most dreaded words in the retail sector. It involves lots and lots of counting, reconciling, physical inspection, planning, and forecasting. It’s a simple equation, you buy goods paying money, and you get that money back plus some profits after selling it. The problem lies when the equation is not balanced. If the company fails to sell all of its stock, they will have liabilities lying around. On the other hand, if they cannot cater to customers’ demand and understock, that’s a lost opportunity. So this equation needs to be balanced all the times to optimizeFree demo revenues. Holding up inventory ties up much needed cash for other business functions. As a result, good inventory management is an absolute must in order for a company to prosper.

Setting par levels

One of the most followed inventory management technique is setting up par levels for each product. It is the minimum amount of stock of a particular item to be had at all times. Whenever the inventory dips below the par level, its an indicator to order more of that item. Mostly, managers order the minimum quantity, which gets the stock above the par level. This par level also varies as per how quickly the product sells or how long it takes to reorder. Creating a par level will systemize the process of ordering in the future. As a result, even staffs can make decisions on ordering based on par levels.

FIFO stock method

FIFO, short for first in, first out, is an essential principle in inventory management. As per the rule, the stock that is bought first gets sold first. As a result, the company will mostly have fresh stocks. This rule is even more critical when it comes to perishable goods as it protects the product from spoiling. Another advantage of using FIFO method is that company can cycle through batches faster and get rid of old stock as packaging design and features often change over time.

Manage relationships

Adaptability and speedier operations are the keys to successful inventory management. People handling stocks should be quick enough to return a slow-selling item, restock fast selling product, temporarily expand storage space, or manage the relationships with suppliers. Having a good relationship with the supplier helps a lot as they will be willing to negotiate on MOQ, which eases inventory pressures. The communication with the supplier should be smooth, and information regarding seasonality and sales can be shared to synergize operations.

Contingency plan

The act of inventory management is not static. Multiple problems can arrive at any time for which companies may not be well-prepared. For instance, situations of sales spike, cash flow shortfall, inventory miscalculation, product shortage, can all cause panic for an inventory manager. However, businesses should have a contingency plan in place to be able to react to such situations quickly without causing any hiccups in the inventory management process.

Stock auditing

Today, digital systems have replaced most of the manual paper-based systems. Managers often rely on software and reports to know the stock levels. However, it is important to verify the numbers shown on the screen with the numbers that are actually in the warehouse. It can be done in terms of physical inventory count, spot checking, or cycle counting.

ABC method

Call it 80:20 rule or ABC method; it is evident that some products need more attention than the others. Using ABC analysis can help businesses to prioritize inventory management which ensures that vital items are never ignored.

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Pharmaceutical Retailing

Inventory Optimization Helps A Pharmaceutical Retailing Client Optimize Service Levels for Different Product Categories

Client: A leading pharmaceutical retailing company, Size: $1 billion in revenue, Area of engagement: Inventory optimization

Typically, the pharmaceutical retailing industry consists of businesses that engage in retailing prescription drugs or patent medicines, cosmetics or toiletries, with primary activities including patent medicine, cosmetic, drug, perfume and toiletry retailing; pharmacy retail operation; and prescription medicine dispensing. The pharmaceutical retailing industry is poised for significant growth, as the average age of the consumer is increasing rapidly. QZ- Request free proposalAn aging population needs enhanced health care and prescription needs; thus, providing a growing customer base for pharmaceutical retailing. However, the growth prospects of the pharmaceutical retailing industry are expected to be influenced by a few factors including:

  • Sparse competition: With the increase in competition, payers and PBMs can negotiate with manufacturers as well as improve clinical outcomes. However, if some drugs don’t lose patent protection, there might be double-digit annual price increases.
  • Crippling policies: Existing federal policies hamper the ability of Medicare Advantage (MA) plans to completely leverage drug management tools to achieve lesser costs for beneficiaries. However, they require MA plans to provide the same drug coverage as fee-for-service to encourage prescribers to utilize high-value drug treatments.

Many such factors are compelling pharmaceutical retailing companies to leverage the use of inventory optimization solutions. Inventory optimization solutions help establishments eliminate out-of-stock situations, improve efficiency, and curtail inventory costs.

The Business Challenge

The client, a leading pharmaceutical retailing client with retail units spread across the globe, wanted to achieve its goal of improving working capital efficiency and reducing inventory while maintaining service levels and growing sales. Additionally, they wanted to reduce inventory costs by 10% in a year by carrying the right product at the right time to the right place.

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The Solution and the Business Impact

The inventory optimization engagement helped the pharmaceutical retailing client devise advanced processing capabilities to calculate product redeployment between stores and adopt a tiered strategy in providing services. Additionally, the client was able to make changes to staffing, fulfillment, and delivery processes to centralize products and inventories. This helped them reduce inventory costs by $0.25 million.

Inventory Optimization Solution Insights

Quantzig’s inventory optimization solutions help clients in the pharmaceutical retailing space to optimized service levels for different product categories. Additionally, companies can better define processes and monitor and manage high-risk categories.


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personal care products

Personal Care Products Retailer Improves Supply Chain Efficiency with the help of Inventory Optimization

Personal care products

Quantzig, a global analytics services provider, has recently completed their latest inventory optimization engagement for a personal care products retailer. Personal care products are significant contributors to the retail industry’s revenues. Top manufacturers in the industry are planning to invest heavily in innovations to develop eco-friendly designs. Additionally, growth in the population and rising demand for luxury products will influence the growth of these products to a large extent.

“Rising preference for organic care products is one of the major challenges that personal care products companies face. An Inventory optimization solution helps companies keep track of their products to serve the customers better.” says an industry expert from Quantzig.

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The solution offered helped the personal care products client to manage and reorder stock through effective purchasing management. The client was also able to gain end-to-end tracking of the products from order to delivery.

Additional Benefits of Inventory Optimization Solution

  • Better handle sales by managing quotations, invoicing, and receipts.
  • Curtail data entry errors, increase productivity, and lower operational costs.
  • To know more, request a free proposal

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Inventory management

Quantzig’s Inventory Management Assists a Prominent Consumer Goods Manufacturer to Improve the Accuracy of Inventory Orders

The client: Consumer goods manufacturer, Size: >$170 million in revenue, Area of engagement: Inventory management

The consumer goods manufacturing sector includes several major manufacturing segments that are involved in the production and supply of a diverse range of products. Companies in this market space have started launching new and innovative products to keep up with the growing needs of the customers. Moreover, the industry has undergone an enormous transformation over the past few years. Also, leading players in the manufacturing space are looking at developing strategies to leverage their profits and market share in an interconnected and competitive environment. Several factors including the changes in consumer behavior, the availability of highly advanced technology, and scarcity of natural resources have contributed significantly to its transformation. Challenges for these organizations include meeting the changing demands of customers, maneuvering through a consolidating market, and executing strategies to grow profitably.

Some of the other factors that will influence the growth prospects of the global consumer goods manufacturing industry over the next few years include:

  • Changes in consumer behavior: Smartphone ownership, internet access, and social media are becoming pervasive globally. This has impacted the way manufacturers interact with consumers. Changes in consumer behavior have also brought about several changes in this sector. The consumers now demand readily available product information along with real-time information updates and around-the-clock customer service.
  • The rise of the digital consumer: Technology plays a significant role in the growth of the consumer goods industry. Consumer good manufacturing companies face challenges in building successful business channels. Leading firms are now exploiting technology-driven opportunities to better understand the consumers and connect with them in a better manner.QZ- Request free proposal Also, several consumer goods manufacturers have been successful when it comes to shifting to e-commerce platforms that allow consumers to conduct transactions and even customize the products and services offered.

The Business Challenge

Consumer goods manufacturing companies will need to find innovative ways to meet the needs of aging consumers.

The client, a prominent consumer goods manufacturer with several manufacturing units spread across the globe, wanted to implement a robust inventory management system to manage their inventory across divisions and manufacturing units across the globe. The client also wanted to devise effective ways to keep track of their stocks and maintain accurate counts to ensure the availability of products. Additionally, the client was looking at implementing a new inventory management system that preschedule releases based on the track records.

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The Solution and the Business Impact:

Strategies that we recommend based on our analysis to improve inventory management

The inventory management solution offered by the team of experts at Quantzig helped the consumer goods manufacturer develop a more efficient inventory management system keeps track of their resources. Additionally, our solutions also assisted the client in monitoring and control, stock-flow analysis, and issue resolution. Our inventory management strategy also helped the client in developing a more organized warehouse by improving the accuracy of inventory orders.

Inventory Management Insights:

Maintaining appropriate inventory levels is crucial for businesses, as too much inventory can be costly. By implementing a good inventory management strategy, organizations such as the consumer goods manufacturing segment can increase their overall efficiency and productivity. Similar to supply and demand, a reliable inventory management system help firms in reducing the liabilities and loss created by overstock. Moreover, inventory management also offers the benefit of streamlining the operations across the supply chain network.


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pharmaceutical industry inventory management

Pharmaceutical sector market analysis – How Inventory Management Solutions can help firms in the Pharmaceutical Industry Analyze Buying Patterns of Customers

Inventory ManagementLONDON: Quantzig, a global analytics services provider, has recently completed their latest inventory management solutions for a leading pharmaceutical sector firm. Policy reforms, rising consumer expectations, and biosimilars showdown has affected the growth of the pharmaceutical industry. As a result, manufacturers are highly investing in R&D to gain a competitive edge in this growing market.

“With the help of a reliable inventory management system, organizations can efficiently keep track of their stock manually and determine points and quantities. Additionally, inventory management helps businesses restock certain items, the amount of purchase, and the prices to pay,” says an industry expert from Quantzig.

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The inventory management solution helped the client to analyze customer behavior and gain insights into the buying patterns, location-based factors, and seasonal demand. Furthermore, they were also able to obtain an accurate picture of the customer requirements and keep the right quantities of products on hand to avoid out-of-stock issues.

Additional Benefits of the Inventory Management Solution

  • Offers real-time visibility into the inventory in terms of the orders and vendors
  • Analyze trends in sales and supply chains
  • Determine the demand and achieve economies of scale
  • To know more, request a free proposal

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