Inventory Replenishment Software’s Hidden Agenda
Demand Driven Inventory Replenishment sounds nice. If your inventory replenishment software uses demand forecasting and incorporates demand concepts to calculate what products to order when and how much to order, tell us have you reached perfection? Sadly, most inventory replenishment software apps are missing a critical component – profit. Most Inventory Replenishment software was written to focus on meeting plan and staying in-stock. A quick review of the number of retailers who have gone away in the past 3 years highlights the success of that strategy.
It’s No Secret- Inventory is Money – What’s Your Return Rate?
In reality, inventory is money, and how you put that money to work will be seen in your results. Some days, it is smart to be in certain investments and some days it is best to sit out and wait. That is a key concept to achieving a demand driven inventory management process. Sound strange – let’s test the idea with a popular business executive’s story.
Heralded businessman Kevin O’Leary is often quoted saying he views his money as little tiny soldiers. He sends them out every morning with instructions to take prisoners, and bring them back to him. This philosophy is one of the key things he credits with his success.
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