Keyline Solution Pvt. Ltd   Home Contact Webmail
     
     
  Inventory Management:

It is the dream of every business to be able to predict the stock requirement for a particular period of time. The right amount of inventory turn is one of the primary indicators of a healthy business because it means a positive cash flow. It would also mean a debt-free relationship with the vendor in return for better pricing of the products and shorter payment terms.   

Determining the right inventory levels is important. While excess inventory levels block working capital in a particular place and can lead to changes in the pricing cycle. Conversely, low levels of inventory could be disastrous to your business since demands can arise out of nowhere; if you are not able to provide for your customers, they are more likely to seek your competitor. Ultimately, not only do you not capitalize on an unexpected increase in demand, but also you might end up losing a significant number of customers to your competitor. So, predicting the right amount of inventory for your business can make a significant difference to your profit margins. Attaining a carefully planned inventory level is not easy – it takes sufficient market analysis, understanding of the business dynamics and prediction of fluctuating demand patterns.

 

A typical Inventory Management cycle consists of different processes:

  • Sales Analysis
     

    Every business needs to keep track of its product line, its demand in the market and the sales parameters which define it. This could enable categorization of the products into

        Top-selling products
       

    The replenishment cycle for top-selling products is shorter than for other products since increased market demand would account for more sales.

        Slow-moving products
       

    These are products that do not have an increasing demand amidst the consumers; however, these products also have to be replenished time and again to ensure that when the demand does arise, you can meet them.

        Non-moving products
       

    These products can not only occupy store space but also obstruct capital flow. Marking down the sales price of these items and organizing a clearance sale could free up money and increase the positivity of cash flow.

       
  • Forecasting
     

    The word “forecasting” could take up multiple prefixes like market forecasting, demand forecasting and sales forecasting. Sales analysis and forecasting prove to be one of the major parameters which help you in the determination of the inventory that has to be stocked up for a period of time. The effect of advertising on consumer behavior, the position of the business in the market and the history of sales during the previous year are all factors that have to be considered to decide on the inventory value.

       
  • Market Dynamics
     

    There are some elements of the market and consumer dynamics that give better results. A period of time during the year may witness what is known as seasonal demand during which sales could peak. Unique designs and products may gain more appeal than the conventional designs – this could also be taken into account.

       

    The common misconception is that inventory management can be hard and would necessitate what would be commonly known as “psychic powers” to estimate the correct levels. However, our team of professionals use a methodical approach and analyze the latest trends of the market, the demand curves of the consumer market and effective forecast models.

    Keyline Solutions offers the best solution sets to Inventory Management – right from a comprehensive sales analysis report to demand forecast models. Not only do we strive to calculate the correct amounts of inventory for your business, but also we enable you to plan and develop systems that replenish goods as and when required. We also establish a replenishment schedule for your business and make sure that you neither reach a zero inventory phase nor does inventory pool up in your warehouse affecting your sales and buying budget.

    We seek to provide information on the top selling jewelry designs over the year, take into account the seasonal demand increase, and extent of marketing and past sales trends in the market. We also give you a complete analytical report of the slow movers and non-movers in the stores. No matter where you are from, we understand the market dynamics in your area and ensure that all information is correct. 

    Untitled Document