For many catering and food production businesses, wasted stock is less of a concern than stock not sold. This might initially seem a confusing statement – after all, isn’t wasted stock the same thing as stock that hasn’t sold? The answer lies behind the reason for the wasted stock – if a small amount of food stock, for example, is wasted, it is nowhere near as concerning as large amounts of unsold stock caused by poor inventory management.
Too Much Stock…
Managers across all industries know that inventory management can be an ongoing challenge because it is very difficult to accurately predict demand. If you invest in a certain product line which has previously sold well but then demand inexplicably falls, you will be left with lots of unwanted stock. And this is a problem as if products are stored in your warehouse for longer than expected, it will have a negative effect on your cash flow for several reasons:
– Unsold items don’t bring in any revenue;
– At the same time, warehouse storage has costs
– Stored items take up valuable space that could be utilised for another product;
– Stock may go out-of-date – a real and present problem for food businesses
– Stock is at greater risk of being damaged, lost or stolen.
Too Little Stock…
Quite simply, the money invested in excess stock could be better spent elsewhere. However, another issue for retailers is the risk of missing out on sales if demand spikes and you don’t have enough stock to meet the increase in consumer demand, and risk losing out to competitors. It’s a tricky balancing act and one that can be aided by using a sophisticated software solution such as Reflex Planning and Demand Forecasting, which will help you to manage your inventory as effectively as possible.
Hitting The Right Stock Level
Reflex’s software is used across a wide range of sectors, from airports and service stations to food outlets. The advanced software can be used to accurately calculate and identify trends and will crunch the numbers according to a deadline set in advance. A 3:30 pm deadline, for example, can be set to produce the next day’s predictions. However, forecasts and reports can also be generated a week, a month or a year in advance.
Our Reflex Business Planning software is designed to meet the varying needs of customers. Shops and businesses all have individual profiles with different levels of popularity for different products. Certain days of the week, different seasons, regular promotions and times of special offers, such as Valentine’s Day or January sales can all help forecast a spike or fall in the sales of specific products according to those times or events.
The advantages of using Reflex Planning software include:
– Reduced wastage;
– Improved efficiency due to time-saving;
– Increased sales;
– Enhanced customer service/brand reputation.
Reflex’s Supply Planning software and Reflex Demand Forecasting are two of several innovative and cost-effective solutions that can be put into place to drive your company to ever greater success. Contact us today to request a free demo.
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