Netsuite Inventory Management - Ensure That You Are Never Stockout
Retailers know that out of stock situations are basically bad for their business but live with the gap in service because the solution looks more expensive than the problem. That is not so. A latest Harvard study shows that stock outs can have long standing repercussions for your business causing loss of business goodwill as well as revenue.
What is a stock out?
A stock out situation occurs when a business fails to replenish stocks before they get depleted leading to empty shelves and disgruntled customers. Costing concepts favor a minimum re-ordering level subject to seasonal demands and variations which is impossible to implement with legacy spreadsheet programs. Disparate systems, multiple platforms, solid architecture do not allow information to flow from one system to another necessary for real time procurement to meet fresh demand.
Stock outs are bad for your business
The Harvard research compiled data from more than 70,000 consumers spread over 29 countries to understand how consumers react to stock out situations. According to the study, 21% to 43% of the customers go to a competitor. It does not have to be so, most stock outs can be attributed to poor inventory management, bad forecasting, mismanagement of planning and procurement and long term product demand. The study found that businesses with well entrenched systems and protocols were faring better when it came to predicting demand and plugging stock outs.
Netsuite ERP Platform for smarter inventory management
A staggering 72% of the stock outs were due to retailers ordering too little or too late, faulty inventory management policies and poor forecasting of demand during peak seasons. Netsuite ERP provides smart answers to stock out problems by using historical data and mathematical interpolations for raising dynamic re-order points.
By using average lead times, seasonal sales demand, and time it takes to replenish inventory, Netsuite Inventory Management system is able to define the reordering level to such a precision that stocks are ordered just in time before stocks run out.
The Benefit of Netsuite Inventory Management System
Netsuite Inventory Management System provides updated information on your current inventory levels preventing untimely stock outs. It leads to improved in SLA and more repeat orders.
Whether you are in the ecommerce or distribution business Inspirria cloudtech understands the importance of preventing embarrassing stock outs situations for your business. As the Harvard study reveals, stock outs can have serious repercussions for your business. So why jeopardize your business with standalone systems which have low predicting and forecasting capabilities when it comes to stock reordering? Get the Netsuite ERP advantage and never lose a customer.