How are you managing your holiday season inventory?

Contingency stock is one of the necessary requirements that all retailers should focus on especially during the peak holiday sales season.

The pain points can be:

Sales lost due to inventory shortage
Unhappy customers
Loss in brand loyalty
Poor Customer Experience

Things to focus on:

High level of customer service and performance
Smooth functioning of supply chain
Optimal utilization of storage space
Avoiding excess inventory
Avoiding excess cost

To achieve this, your inventory management system should help you to manage contingency stock and analyze which touch points require re-ordering

What is Contingency stock? The amount of inventory you need to keep protecting against demand fluctuations and shortages in supply of all your SKU’s
What is Reorder point? This is the ideal time to order more stock to avoid dipping into contingency stock of all your products.

The mechanisms of your fulfilment operations should help you to calculate an optimized stock level and reorder point periodically to avoid having static numbers for these two important factors.

Is your Inventory operation fully optimized?

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References:
https://www.linkedin.com/posts/trraman1991_ecommerce-ecommercetips-eductionseries-activity-6873491594516013058-NWgj/

Photo source:
Tiger Lily, jaymethunt