1. Alerting & monitoring: excess or too little inventory, obsolescence, and shelf life
1. Alerting & monitoring: excess or too little inventory, obsolescence, and shelf life
Even with the right inventory policies, unexpected events will still arise. Demand might drop for certain products, resulting in excess stock. If the initial plan was sound, this isn't necessarily a failure of the supply chain but an unfortunate & unpredictable outcome. Nevertheless, it’s crucial to have processes in place to reduce excess inventory, particularly for items at risk of obsolescence (e.g., with new product launches) or with limited shelf life (e.g., perishable goods like food or pharmaceuticals).
Alerting & monitoring
In these cases, real-time monitoring and alerts for excess stock are essential. Alerts enable teams to act quickly, considering discounting or special promotions to move slow-moving items. For stock that will become obsolete or will expire, alerts should trigger well ahead of deadlines to allow for effective sales strategies, reducing the risk of waste and lost value.
Real-time monitoring can also flag situations where inventory is insufficient. Low-stock alerts signal replenishment needs, while monitoring long lead times helps identify potential supply delays, allowing for adjustments before shortages affect operations. Real-time alerts ensure that inventory levels are dynamically aligned with market demand, improving response time to both stock surpluses and shortages.