Out-of-stock or stockout condition arises when the demand for an item cannot be fulfilled from the current inventory. Not only do they result in lost sales, but also lead to reduced customer satisfaction and lower loyalty levels. Here are mentioned some out of stock solutions to help you decrease and prevent stockouts:
Use RFID Tags
Radio Frequency Identification (RFID) tags allow you to track product faster and more efficiently in your warehouse.
With the help of RFID tags, you can quickly search and find the products you need to retrieve. And RFID tags allow you to scan any item and find out in real-time how much of that item you still have in stock. Implement RFID tags to reduce stockouts.
Forecast Demand
Inaccurate forecasting is one of the main reason behind the stockouts. In order to avoid going out of stock, you should follow demand forecasting techniques such as
• Determining what to measure and how often.
• Combining data from all of your sales channels.
• Creating a repeatable monthly process that examines previous forecasts and compares them to actual market outcomes.
Keep Safety Stock Inventory
Safety stock inventory is an additional quantity of items held in inventory in order to guard against variability in market demand and lead times.
In the case of an unexpected increase in demand, inaccurate market estimates, keeping safety stock in the inventory helps to prevent stockouts.
Use a Cloud-Based Inventory System
A cloud-based inventory management system manages every detail about your inventory and lets you track your inventory in real-time from anywhere in the world. It helps you to identify when the stock is low or sales are high.
To know more about Stockout solutions for your supply chain, go to Tenaxx Logistics and give us a call to find out which solution is right for you.