For businesses with finite inventories available for customers to access, it is vital to ensure a demand for product never outnumbers the supply. By understanding inventory forecasting models as well as key metrics concerning reorder points and quantities, a business can stretch its capital by making sure that product is always available while not letting wasted excess compile.
Inventory forecasting is making an informed prediction about placing an order. Using forecasting models such as determining reorder points and economic order quantities can help ensure optimal inventory control. Forecasting linked to determining reorder points and order quantities, both of which are critical to optimizing inventory control. Basically, there just has to always be enough inventory to cover the lead time while waiting for new stock to arrive.
Inventory forecasting, especially for emerging e-commerce startups, can be vital to maintaining a sufficient cash flow in a company and be vital in assuring products or services are able to reach the hands of customers. Keeping close tabs on inventory will limit any unnecessary burn rate while still ensuring that shelves are always stocked with product ready to be delivered.
With first-hand experience in maintaining a proper inventory forecast, 565 Media can assist in monitoring your company’s logistics and determine the proper timing for liquidating and restocking. Our team keeps close tabs on all of your inventory metrics in order to develop personalized inventory management plans as well as adjust for any spikes or dips along the way.