Insights

Whether you’re new to logistics or a veteran, safety stock is an important concept that many people can be confused about. As a simple explanation, safety stock is an extra amount of stock that is maintained to mitigrate a risk of stockout. That is all well and good, but how is safety stock calculated in order to prevent a stockout? The answer to that is affected by a number of different variables: How predictable is the product in sales? How well is the forecast model fitted? What is the lead time? What is the forecast for the item? What is the confidence level and set service level? That may see like a lot, but all of these factors will affect an item’s safety stock.

Read on as we explore five best practices that will help to tackle your inventory management iceberg to maximise profitability and customer satisfaction.

Everywhere you look, you’ll find the Pareto Principle — also known as the 80/20 rule. 20% of minerals make up 80% of the Earth’s crust, 20% of species are responsible for 80% of the world’s biomass, and in business, 20% of customers generate 80% of profits. The question is, do you know which 20% of your wholesale inventory is driving 80% of your revenue? If not, it’s time to think about ABC analysis.

Whether goods are flying off the shelves or hanging around even after deep discounts, you need to know. To find out, you need to take the pulse of inventory turnover — how quickly products sell and are replaced during a set period.

Discover essential tips and formulas for effective SKU rationalisation to optimise your inventory.

Discover essential tips and formulas for mastering safety stock to enhance inventory accuracy and efficiency.

Transform your inventory management approach with our comprehensive guide for 2024.

Discover how our customers succeed with AGR's inventory optimisation solutions.

Learn how dual sourcing can enhance your supply chain resilience.

Enhance your supply chain visibility to improve operational efficiency.

Identify if poor inventory management is hindering your business and how to fix it.