Do you have any idea what a stockout is? Have you ever been to the supermarket and couldn’t find the biscuits you wanted? Stock-outs are just that, shortages of a particular product for sale.
Despite technological advances in recent years, stockouts are still a problem for many companies.
There are many aspects to consider when planning and managing stock. It is necessary to use good management practices and information systems in order to prevent the consumer from having a shortage on the shelves, which can have negative consequences.
Find out more in the article below.
But… What are the reasons for stockouts in the warehouse?
- Inaccurate stocktaking data;
- Errors in the supply to the distribution centre (in some places due to excess, in others due to shortage);
- Human error at different points in the supply chain;
- Delays in the delivery of goods;
- Unexpected events (covid-19, geopolitical conflicts);
- Unexpected increase in demand;
- Product seasonality.
What are the CONSEQUENCES of stockouts?
- Cancelling the purchase;
- Loss of sales;
- Customer dissatisfaction;
- Increased logistics costs;
- Client chooses competitors.
How to AVOID stockouts?
- Develop a supply chain contingency plan;
- Create an appropriate and adjusted demand forecast;
- Predict peak activity according to seasonality and festive dates;
- Identify product life cycle;
- Know the consumer profile;
- Monitoring market trends;
- Planning of promotions;
- Monitor stock levels at various points in the supply chain;
- Implementing a computerised system that improves supply chain processes and optimises logistics flows;
- Using technology to streamline operations, save costs and reduce downtime.
Resilience in supply chain management is key to spotting warning signs and responding effectively.
Are you currently facing a stockout? Get in touch with Olicargo and find out the solution to this problem. There are failures that occur at an early stage in the supply chain and that can be avoided.
Methods and technologies used throughout the process are critical to ensure that products reach their destination on time. Rely on a logistics partner that can help you become more agile and responsive to change and challenges.
Sources:
Mecalux. (2020). Rutura de stock: o que é e como evitar que ocorra?. Consultado a 04 de março de 2024, em: https://www.mecalux.pt/blog/rutura-de-stock
Rotom. (2024). Como lidar com as falhas na cadeia de abastecimento?. Consultado a 04 de março de 2024, em: https://rotom.pt/articles/post/como-lidar-com-as-falhas-na-cadeia-de-abastecimento
Mecalux. (2021). O risco de interrupção na cadeia de abastecimento. Consultado a 04 de março de 2024, em: https://www.mecalux.pt/blog/riscos-cadeina-de-abastecimento
