In this way, this problem ends up harming loan database the productivity of any company, and, consequently, profits !
Today, not only are investments in sales and marketing essential, although they are also very important.
Therefore, if you do not have a stock that does not guarantee good predictability of products for your customer, you will be generating a breach of expectations that can be very damaging to your relationship with customers.
If you have inventory management difficulties, schedule a free diagnosis with Líder Jr.
Therefore, understanding the types of inventory management and knowing which makes the most sense for your business are very important to improve the logistical performance of companies.
However, many managers still have difficulty adapting their management to stock management practices and identifying, among the types of stock, the one that best adapts to the needs of each organization.
Therefore, it can be understood that managing stocks correctly is a practice that guarantees better results for any organization.
To do this, let's better understand the 8 main types of inventory management for industry and retail .
The 4 main types of inventory for industries
1. Safety stock
Safety stock is made possible by the need for industries to ensure that, amidst uncertainty with suppliers, a failure in the process or even in the face of fluctuations in market demand , their business is prepared to offer their product.
Therefore, even with unforeseen failures over time, the industry can be sure that it will be delivering a product to its customer that is guaranteed by good planning with its inventory.
When we talk about demand forecasting, we have an extremely important factor not only for inventory but for sales planning .
Read more at: The Basic Guide to Demand Forecasting .
Benefits of this type of stock:
The consumer is not harmed during the negotiation and transportation period until the arrival of the new goods;
The risk of lost sales is reduced;
Planning and understanding of inventory and production processes;
Increased customer satisfaction;
Reduction in storage costs.
2. Flow stock
Initially, with a scenario of low uncertainty in the market, processes and supply, we still have a supply chain to manage.
Therefore, we need to ensure that product replenishment times are as short as possible without increasing inventory costs.
Therefore, the time between ordering and receiving new products must be well controlled and documented.
This is because, given seasonality, it is possible to plan the entry of products according to the exit from stock.
Benefits of this type of stock:
It enables production processes without interrupting production and sales.
3. Cycle stock
The relationship between companies and their suppliers is an essential factor in any inventory planning.
Therefore, we know that we can often save money when purchasing products by purchasing in bulk.
In this way, the profits from products in this purchasing model make it more attractive for companies regardless of the predictability of sales or stock replenishment time.
Therefore, we have a new stock, determined by the batch size or cycle stock.
Benefits of this type of stock:
Reduces logistical costs such as transportation, product costs or other indirect costs, for example;
Allow items in stock to circulate internally;
Fully meet demand and maintain the business's economic performance.
Download for free : How to carry out process mapping in my company .
4. Seasonal stock
In the face of certain events and specific periods, we may encounter situations in which our demand for certain products increases considerably.
Therefore, it is necessary to be prepared to serve the public with safety and quality.
For this reason, it is necessary for the industry to be prepared with a temporary stock , or a reallocation on the abc curve within the stock, to meet all orders during this period of high demand.
As an example, we can mention the higher occupancy rate of hotels during high season, thus having to increase their services to serve all customers.
Benefits of this type of stock:
Main function: stabilize production capacity in a sustainable way
The 4 main types of inventory for retail
1. Buffer stock
Regulatory stock is very present in this sector as it helps control uncertainties in demand variation.
Therefore, it is widely used in companies that have branches and need to deal with this logistics network or also in seasonal periods ;
2. Channel inventory
As the name suggests, this type of stock is related to intermediate channels between the factory and the point of sale .
Therefore, there needs to be distribution planning between carriers and each distribution center.
3. Anticipation stock
This type of stock is very present in the food industry .
This is because it has highly expected seasonalities throughout the year, such as celebratory dates, such as Christmas, for example.
Therefore, variability in demand can be predicted with greater certainty, and consequently, an anticipation stock can be implemented.
4. Protective stock
As we can understand from the name, this type of stock serves to guarantee protection against product shortages, whether due to internal or external problems.
Furthermore, it can also be used to cover unexpected variability in demand. This ensures good delivery to customers, avoiding customer loss or broken expectations.
Therefore, these are some strategies available to manage stocks in different situations . Therefore, with good management and predictability, we can increase productivity and, consequently, the company's profit.
To carry out a free diagnosis of your business and understand how you can improve your management, contact us.
