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No More Stockouts: How FMCG Distribution Solution Optimizes Distributor Inventory

Banner_How FMCG Distribution Solution Optimizes Distributor Inventory

The process of replenishing inventory is a critical aspect of FMCG distribution, and it requires a comprehensive approach that takes into account many different factors.

At first, managing retail replenishment for thousands of SKUs can seem daunting – forecasting demand, determining the appropriate amount of inventory to reorder, timing purchases, and allocating products across channels and locations can be a complex process.

This can be especially challenging for multichannel distribution networks for FMCG companies who deal with varying inventory movements across different channels.

Ensuring an adequate supply of inventory is a complicated task that involves several considerations.

Accurate demand forecasting is critical to determine the amount, location, and timing of inventory needs.  Using distribution management software many FMCG companies are now relying on sophisticated algorithms and predictive analytics based on past data to forecast future demand.

How is Realtime Retail Inventory Replenishment Achieved

The process of replenishment must factor in the estimated lead time for every order. This is the interval from when an order is placed to when the inventory is available for use.

The calculation of lead time can include factors such as the time needed for manufacturing, packaging, shipping, and processing the delivery, and these may differ based on the type of business. It is crucial to take into account the varying lead times for each item, as they can greatly impact the replenishment process.

When planning for replenishment, various factors must be taken into account. These may include bulk purchasing discounts, shipping distances, vendor-imposed quantity limitations, the need for safety stock, and other elements that could impact delivery and cost.

Additionally, it’s crucial to consider unique circumstances like seasonal changes in product demand, sales promotions, newly opened locations, local market competition, and customer demographics among others.

The Re-order Strategy

One of the most common strategies to replenish inventory is through the reorder point strategy, where inventory is replenished once it reaches a certain limit.

For this approach to be effective, it is crucial to have access to real-time information on stock levels and ordering data across all sales channels.

A top-notch software solution such as Entegrated Distribution Management Solution with Retail Stock Replenishment Alerts can make this possible by including automations that trigger notifications when reaching the reorder point or automatically placing orders to replenish inventory.

The Top-off Strategy

The top-off inventory replenishment strategy involves topping up stock during periods of low demand and slower operational processes to maximize productivity and maintain optimal inventory levels for when demand picks up. This requires frequent, smaller restocking efforts and is a valuable approach for businesses in high-velocity industries. On the other hand, businesses dealing with slow-moving products may not find this strategy suitable.

The Periodic Replenishment Strategy

The periodic replenishment strategy involves regularly scheduling inventory restocking at predetermined intervals, regardless of the current inventory levels. This approach assumes a stable demand rate and allows businesses to plan their inventory needs in advance. By regularly restocking inventory, businesses can avoid stockouts and reduce the risk of excess inventory. However, this strategy may lead to inefficiencies if demand fluctuates significantly, causing either stock outs or overstocking.

What makes retail replenishment so important?

Retail replenishment is important for several reasons:

Maintaining optimal inventory levels
Retail replenishment helps ensure that businesses have the right amount of stock available to meet customer demand. This helps to avoid stockouts, which can lead to lost sales, or overstocking, which can lead to waste and increased costs.

Enhancing customer experience

When customers can find what they need in-store or online, they are more likely to have a positive experience and return for future purchases. Retail replenishment helps ensure that stores are well-stocked and ready to meet customer needs.

Improving efficiency and reducing costs

Retail replenishment helps businesses plan and coordinate inventory restocking in a way that maximizes efficiency and reduces costs. This can include using technology to automate and optimize the process, reducing the need for manual intervention and minimizing the risk of error.

Supporting supply chain management

Retail replenishment is a critical part of supply chain management, as it helps to ensure that inventory levels are maintained throughout the supply chain, from suppliers to stores and customers.

Overall, retail replenishment is essential for maintaining high levels of customer satisfaction, optimizing inventory management, and supporting overall business success.

Entegrated Distribution Solution and Auto Replenishment

Auto Replenishment Alerts feature in Entegrated FMCG Distribution Solution helps FMCG companies optimize their inventory management by generating alerts that sound alarm for reordering stock when it runs low.

Never Face Stockouts Again

The Entegrated Distribution Solution simplifies this process by utilizing advanced algorithms and predictive analytics based on historical data to accurately project future demand. This ensures that inventory levels are always maintained at the desired levels.

This helps to reduce the pressure on primary stocking, giving sales teams more time to focus on secondary activities. FMCG companies avoid stockouts, reduce waste, and maintain efficient inventory levels.

Setting Inventory Norms for Customer-SKU combination

Entegrated Distribution Solution uses advanced analytics to monitor real-time data and trigger restocking alerts when inventory levels reach a pre-determined threshold.

This feature works by setting inventory norms for every customer-SKU combination in the Master Data in your ERP or inventory management solution, and then sending replenishment alerts to the retailer based on their sales through Entegrated Distribution Solution.

Maintain Desired Inventory Level with Complete Distributor and Sales Visibility

Now, desired levels of inventory at retail outlets can be maintained without compromising the freshness of goods or affecting the cash flow of the seller thanks to Entegrated Distribution Solution by experts at Entegrated.

By being aware of the replenishment process, FMCG companies can streamline their operations and save time and resources that would otherwise be spent manually monitoring and reordering inventory.

In conclusion, Entegrated FMCG Distribution Solution with Stock Replenishment Alerts is a cutting-edge solution for managing end-to-end FMCG distribution operations from Company Warehouse to Distributor to Traders and Retail stores.

With its ability to provide real-time visibility into stock levels, sales data across multiple channels, and replenishment alerts, this solution can help businesses minimize stock-outs and maximize profits.

Additionally, the use of inbuilt analytics and reporting ensures accurate demand forecasting, reducing the need for manual intervention.

Considering transformation of your Sales and Distribution processes? Book your Free Demo for Entegrated Distribution Solution today. Get in touch with the best FMCG Distribution Solution experts in India at Entegrated Solution. Call +91 7948998911 (India), Whatsapp +254 111229970 (Kenya), Call +1 469 915 6026 (North America) or drop an E-mail at sales@entegratedsolution.com

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