Enhancing inventory replenishment process flow through efficient sales & demand forecasting

Being able to adapt to the growing market and customers needs is significant to achieve business growth. This can be attainable if the organization can supply the requirements of its customers in a timely and accurate manner. In line with this, having the appropriate inventory of goods is essential in order to speedily provide quality customer service. For organizations involved in manufacturing and distribution, inventory level of products must consistently be enough to support incoming demands from the market. This also supports the goal to increase revenue by eliminating loss sales opportunities through sufficient stock-on-hand and consistent inventory replenishment across the organizations warehouse and distribution points. There are several inventory management strategies and frameworks which can be helpful to maintain a healthy inventory. According to an article by Wallin (2006), The most common inventory management methods are Inventory Speculation and Inventory Postponement. Inventory Speculation equips the organization to respond quickly to demand. On the other hand, Inventory Postponement allows the organization to minimize inventory obsolescence risks and decrease the opportunity cost of having inventory capital tied up in product inventories. In addition, another essential tool in Inventory Management is Turnover Analysis. This helps the organization to decide whether inventory level for a particular product is excessive, too low or just right. Also, Collaboration among all stakeholders is a critical factor in Inventory Management. The CPFR Framework (Collaborative Planning, Forecasting and Replenishment) is an essential tool to ensure consistency among stakeholders. This enhances supply chain integration by supporting joint practices within different teams in the organization