Is your business holding too much stock? In a bid to keep customers happy, many businesses have resorted to offering high levels of inventory across already spiralling assortments. While this ensures that customers have plenty of choice, keeping up with these exploding ranges can prove a constant battle. What steps can building businesses take to overcome these inventory challenges?
How much stock is too much stock?
The honest answer for many businesses is that they simply do not know!
In pursuit of a unique selling point, many businesses have developed extensive assortments encompassing many thousands of SKUs. However, managing such a large number of items brings with it its own range of challenges.
No doubt many business will be all too familiar with consequences of holding too much stock for some products while others are left dangerously exposed to stock-outs!
How can you optimise inventory levels across your long tail products?
80% of a business’s turnover is typically generated by just 20% of the assortment. Yet, many businesses invest a huge amount of resources into managing thousands of items that offer limited value to the business while ignoring those that matter to the customer. The reality for many businesses is that they hold too much stock for the wrong products.
From service levels to stocking decisions, an effective ABC analysis can provide the essential insights required to shape the assortment and help make informed decisions.
In our latest article, we explore 3 top tips you can adopt today to help reduce inventory levels, improve cash flow and help maximise the profitability of your long tail.
Download our guide to adopt a more tailored approach to manage your long-tail assortment.