6 Inventory Inefficiencies You Can Avoid with Collaboration

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If your distribution organization lacks connected visibility across your organization, you may find yourself with:

  1. Inaccurate balance sheets which impact financial reporting and can ultimately impact credit and financing
  2. Too much inventory which leads to wasted cash
  3. Too little inventory resulting in stock outs or reduced customer satisfaction, lost customers and missed revenue opportunities
  4. The need for substitutions which adds labor cost, can increase returns, and lowers customer satisfaction
  5. Reduced cash flow as you scurry to quickly purchase inventory to meet demand
  6. Longer lead times which can increase the cost of a sale and reduce cash flow due to delayed revenue recognition

All 6 of these of these inventory inefficiencies can be avoided by enhancing your organizational collaboration across not only your distribution centers, but also across departments.

In a recent article, the staff of Modern Distribution Management suggested consolidating forecasting and demand planning for the entire organization and all distribution centers in a single, cross-functional group that meets frequently.

Another way to enhance collaboration and avoid inaccurate inventory is through a connected distribution management solution that prevents data silos and enables more efficient forecasting. By giving all of the appropriate individuals in your organization access to your inventory data in a single, unified solution, will not only help them to make better inventory decisions, but also improve the operations and profitability of your organization across the board.

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By Socius, a Distribution Solutions provider in Ohio

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