Planning for anything is a significant task to reach your goal or complete a particular work. It becomes difficult to execute any task successfully without any definite plan for its execution. If everything is planned, one can easily forecast future problems or needs and can be prepared with is a solution. Thus it would be easier to solve the problem in time and there won’t be any panic situation. Inventory planning software helps companies to manage their inventories effectively. This software is a combination of advanced technology with real-time data to help companies make the right decisions at the right time.
8 signs you need Inventory Software Planning Software:
- Demand Forecasting:
If your actual demand is most of the time above or below your predictions, then the strategies or formulas you’re using could simply be inadequate. The demand pattern of a product in its growing phase will be different from that at maturity or in decline. During ‘growth’, products see an increase in demand; while at ‘maturity’ demand usually remains steady, becoming more irregular as it reaches the ‘decline’ stage as sales become inconsistent.
- Volatile Demand:
If you are struggling in generating the seasonal forecast of your product or SKUs where demand keeps fluctuating up and down, its time for you to go for inventory planning software. Every organization has a chance to capitalize on busy sales days and running out of inventory in that situation can dent your sales.
- Inventory Piled Up:
If your warehouse is piled up with stock, this signals your poor inventory planning system. Your stock should be segmented into – healthy stock, excess stock and obsolete stock. It is obvious that you should have more healthy stock and less of the excess and obsolete. Capital locked up in the excess stock is bad for your business, affecting carrying costs, liquidity and cash flow.
- Customer Service Level:
If you are unable to fulfill your customer orders its time for inventory planning software. No matter what technique or formula you use for optimizing your customer service level, it should always be consistent. Due to poor forecasting or inadequate inventory, an inability to fulfill orders due to stock-outs is created.
- Lost Sales and Accounts:
If you are continuously failing to fulfill your customer demand, you would see your customers moving to competitors or you lose important customer accounts due to an inability to deliver their orders at the right time. It is high time and worth considering inventory planning software in this case.
- Constant Fire-Fight:
If there is a constant fight between you and your inventory planners it will be tough for you to achieve your targets and have time for strategic planning. If you are dealing with backorders and expediting replenishment orders its time for you to find the cause, for this costly and inefficient for any business to grow.
- Inventory and Replenishment Planning:
If you are still using the old manual process for managing your inventory it is time for you to upgrade to inventory planning software. Keeping an eye on your stock, processing and checking each order manually consumes a lot of time and energy. This will make it impossible to reduce order cycle time, and you will be ordering less frequently and more of your money will be tied up in stock.
- Lead time:
If there are challenges that increase your risk of stock-outs and lead you to inefficient replenishment practices – it’s time to talk about inventory planning software. Struggling to manage your supplier’s lead time, getting caught out by annual shut-down or busy periods, etc are a few issues that you might come across without proper planning software.
If you and your inventory management team are experiencing the above challenges it might be time for you to consider and contact a professional inventory planning software provider. This will resolve all the above issues and help you achieve the desired targets.