Tag: Inventory Management Techniques

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Minimizing Costs and Maximizing Sales with Better Inventory Management

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest newsletter on minimizing costs and maximizing sales with better inventory management. The article offers highlights the challenges faced by companies in improving the inventory management process. The article also offers detailed insights into the top inventory management techniques that can help companies to minimize the loss of sales, reduce storage costs and improve the business productivity. 

Why Should You Improve Purchasing and Inventory Management?

Most companies still dread the word “inventory”. They consider it an arduous task due to the efforts involved in managing it. This makes them overlook the fact that improving the inventory management process is crucial to minimizing costs. Also, the increasing need to satisfy customer demand without overstocking items cannot be fulfilled without streamlining purchasing and inventory management.

The article highlights how improving inventory management process can help companies to maintain proper stocks, minimize dead stock storage, and significantly lower inventory costs. It also highlights how inventory control data can facilitate accurate ordering practices and help companies maintain right-size inventory without wasting resources.

Roadblocks Companies Face While Improving the Inventory Management Process

Inventory management in many categories involves complex systems that comprises of interrelated and interlocking subsystems. The pharmaceutical category is one of them. Companies in the pharmaceutical industry face several challenges, especially when it comes to meeting the demands for new and personalized therapeutics.

To help you better understand challenges, we have outlined the key factors impacting the process. We have explained how lack of accurate information, inadequate facilities to support large inventories, and the inability to provide the right temperature can impact the pharmaceutical companies. Not only this, our experts have also highlighted the best practices to optimize your inventory levels.

Successful Strategies to Improve Purchasing and Inventory Management

Our experience with clients has proved that with better inventory management techniques in place, organizations can improve their cash flow and provide better customer service. They can increase profits, gain significant competitive advantage, and boost brand value by controlling inventory, avoiding spoilage, and reducing storage costs.

This article will help you understand the best techniques adopted by best-in-class companies in the retail category. It highlights how FIFO strategy can help companies to reduce unsellable spoilage and minimize obsolete products in the inventory. Also, it shows how setting par levels can make it easier for companies to systemize the process of ordering

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4 Best Inventory Management Techniques for the Retail Category

Many companies in the retail category still dread the word “inventory”. They consider inventory management a herculean task due to the sheer effort involved in managing it. However, it possesses the potential to make or break any business. Companies can’t sell anything unless they know where the product is, where it’s supposed to go, and how much they have. Holding inventory ties up a lot of cash for companies. That’s why good retail inventory management becomes crucial for growing a company. With proper inventory management techniques, companies can control inventory, avoid spoilage, and save on storage costs.

Want to know how retail inventory management techniques can help you ensure enough stock on hand and increase sales? Request a free proposal and we will get back to you in within two working days.

Top Inventory Management Techniques

Inventory management techniques #1: FIFO strategy

First-in, first-out is one of the most important inventory management techniques for companies in the retail category. In this technique, companies move out their oldest stock first and then the newest stock. This strategy is especially important to reduce unsellable spoilage for companies selling perishable products.

Practicing FIFO is also a good idea for non-perishable products. If the same boxes keep on sitting at the back, they become obsolete. Moreover, packaging design and features also change over time making them look worn out.

Inventory management techniques #2: Determine inventory levels

Setting par levels make it easier for companies to manage inventory. Par levels are the minimum number of products that companies need to have at any point in time. If the stock dips below a predetermined level, companies know it’s time to order more.

Usually, companies order the minimum quantity and get back above par. However, it requires companies to do some research and make decisions upfront to systemize the process of ordering. Improving inventory management system makes it easier for companies to adjust par levels.

Wondering how you can set par levels and adjust them according to customers’ demand?

Contact us, to know how our inventory management techniques can improve your inventory management process.

Inventory management techniques #3: Effective contingency planning

Companies face a lot of issues such as sales spike and cashflow shortfall while managing inventory. Also, there can be instances when manufacturers run out of products or discontinue a product without warning. Such issues can cripple businesses if not managed well.

Determine where risks are and develop a robust contingency plan. Devise strategies that can prove helpful during such as a situation. Also, know-how will it impact different parts of the business.

Anticipating contingencies requires companies to analyze different factors impacting the retail inventory management. Give SpendEdge a try by subscribing for a demo to gain insights for improving the inventory management process.

Inventory management techniques #4: Perform regular auditing

Regular reconciliation is one of the key inventory management techniques that help companies keep a check on products in the stock. Companies can either do it manually by counting all the inventory at once or start spot checking throughout the year.

Companies can also use cycle counting to audit their inventory rather than doing a full physical inventory. Cycle counting spreads reconciliation throughout the year and helps companies to check products on a rotating schedule by improving the inventory management system.

To know how inventory management techniques can help you improve inventory management process, request for more information from our analysts.

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Taking a Step Forward towards Better Inventory Management of Pharmaceutical Supplies

Inventory management in the pharmaceutical industry involves complex systems that consist of interrelated and interlocking subsystems. Changes made in one part of the inventory management system have both anticipated and unanticipated consequences in the other part of the system. In recent years, we have witnessed several pathbreaking discoveries in the pharmaceutical industry’s inventory management. However, even small mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary expenses or worse, prescription errors that endanger patient health. Furthermore, the advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, particularly in meeting the demands for new and personalized therapeutics. 

Inventory related challenges affecting pharmaceutical companies

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Inventory management in global health pharmaceutical delivery supply chain involves complex processes which include quantification and replenishment decisions. However, due to the lack of accurate information, there is often uncertainty that results in a negative impact on the company’s inventory management system.

Dependency on human resources

The lack of qualified individuals to fill the logistics-related positions in pharmaceutical companies is being recognized as a threat that results in heavy workload and ineffective role performance. Aside from this, it also leaves key responsibilities that include making supply chain calculations and decisions unattended. On the other hand, along with the utilization of accessible and user-friendly IT systems, pressure on HR capacity can be alleviated by hiring a dynamic team of responsible and trained people equipped with enough knowledge and skills.

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Order management

Demand information or data about the availability of products in the different levels of the supply chain are the primary decision-making factors in order management. This translates to the fact that lack of accurate information would make order management to solely rely on assumptions and experience. Consequently, orders may arrive incomplete, inaccurate or delayed, which can negatively affect product availability and overall inventory management of pharmaceutical supplies.

Warehouse management

Most warehouses do not possess adequate facilities to support large inventories. Relying on third-party logistics might not always be effective due to poor organization and not enough designated area for different functions such as receiving, shipping and storage for both damaged and expired products. In the long run, such unfavorable conditions may ultimately lead to discrepancies in logistics and inaccuracies in inventory management.

Temperature control

Factors such as environmental conditions, particularly temperature could greatly affect drug potency. Hence, failure to provide the right temperature during storage and shipment of pharmaceutical products may result in major product wastage. Refrigerated containers or storage rooms might be available in the warehouses. However, there are chances of gaps in ensuring and monitoring of temperature level. This makes cold chain difficult to maintain.

Shipment visibility

Once the manufacturer sends out the product for delivery, it becomes difficult to track its status at different levels of the supply chain. Besides, the exact date when the products will arrive becomes unknown to both the manufacturer and the recipient.

Shake-off inventory management troubles with informed decisions from our pharmaceutical industry experts. Get in touch!

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Overcoming pharmaceutical inventory management challenges

Some of the top pharmaceutical companies are already doing a stellar job at inventory management, but almost everyone has some room for improvement. Here are some best practices for companies in the pharmaceutical industry to optimize their inventory levels:

Get an accurate count

Pharmaceutical companies can’t manage what they don’t measure. Also, a visual scan of the shelves often proves insufficient to provide the sort of accuracy needed. One of the best solutions to combat this is to conduct an annual physical inventory, supported by a computerized inventory system, and monitored by a designated employee.

Maximize the value of inventory management system

Most computerized inventory management systems lack a perpetual inventory management model. Such systems help in keeping tabs on all products in stock and automatically places an order for more product needed to maintain a certain inventory level. The company will need to adjust the parameters depending on the demand. This ensures that the order threshold and amount match the new future demand. Even a computerized system needs to be monitored and maintained for accuracy.

Shed excess inventory

Pharmaceutical inventory loses value as it ages. So, carrying excess inventory amplifies the risk of losing thousands of dollars on expired, unsaleable products. A pharmaceutical company can’t sell products once they pass their expiration date. Although demand can fluctuate from day to day, a week’s worth of inventory should be more than enough to accommodate even unusual spikes in daily demand.

With a capable supply chain and inventory management process in place, there is no looking back for companies in the pharmaceutical industry. But are you there yet? If not, SpendEdge is here to help. Request a free proposal now!

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5 Keys to Evaluate Your Inventory Management Process for Biomedical Devices

With the emerging need to delicately balance the medical devices’ security and patient safety, medical device manufacturers are facing numerous challenges like reducing costs, better inventory management, improving efficiency, and allocating resources effectively. The need for inventory management solutions is increasing for medical devices manufacturers owing to the surge in demand for better healthcare products.

Poor inventory management or disconnected systems can lead to operational inefficiency and issues with order fulfillment, which rises concurrently with an increase in the demand. Additionally, it can also result in wastage of time, space, and can increase the cost of operations. Therefore, it is important for the manufacturers of medical devices to understand that creating a feasible model for inventory management is central to the sustainability of their business.

At SpendEdge, we understand the impact that an effective inventory management solution can have on your business. And to help companies manufacturing medical devices in the changing landscape of the medical industry, our team of experts has highlighted five ways to examine their inventory management process and improve their efficiency.



Top 4 Inventory Management Techniques to Help You Save More Money

Inventory management is one of the most essential requirements for distributors and manufacturers, especially in a rapidly changing landscape where the paper and pen method of record keeping has become obsolete and we all are responding actively to digital transformation. Companies must keep their inventory management techniques up-to-date to have a proper understanding of the factors that influence their product inventory levels. This can help businesses to fasten the fulfillment process, minimize costs, and prevent fraud. An overstocked inventory is both cost and time inefficient and occupies precious warehouse space that could be used to store high demand products. On the other hand, if the lack of inventory makes you lose the sale then this could drive customers to competitors and could lead to poor customer service. Therefore, maintaining the right inventory balance in the warehouses is very crucial. In this article, we have talked in detail about various inventory managementContact US techniques and different types of inventory management techniques to help you save more money. (more…)

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4 Best Practices to Transform Your Inventory Management Process

What is inventory management? 

Inventory management essentially refers to the efficient management of stock and inventory. In a nutshell, it is all about having the right amount of stock at the right time, right place, right cost, and in the right quantity. However, the entire process is not as easy as it might sound. It involves the use of various inventory management techniques to control and oversee order placements, ensure the appropriate storage of the stock, and controlling the number of products for sale. It can often get challenging for businesses to keep up with inventory demands while monitoring the inventory process and the needs of their workers, customers, or the buyers. Contact US

Inventory management best practices

Track the fast and slow movers

A proven advantage of optimizing inventory management for warehouses is that it can help track sales and orders for each product or customer. These inventory management techniques are extremely useful for companies to gain smart insights into inventory data.  This information can be used to track the high sellers. This way, the entire stock management process becomes more efficient, storage and shipping are performed faster, and companies will not have to worry about this task ever again. This is an ideal inventory management best practice to keep the big clients happy.

Categorize the inventory

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One of the most common inventory management techniques for categorizing the stock is through ABC analysis. This is the technique of arranging the stock into groups that range from the most important to the least important items. A-items typically the best-selling, highest priority stock and require regular reordering and constant quality review. B items are medium-priority stock and usually require monthly reordering. C-items are often low priority goods that are typically carried in high volumes with minimal reordering. Organizing your stock within the warehouse according to how they sell and how much value they bring the business is an important inventory management best practice that will help companies optimize storage space and streamline order fulfillment.

Automation and Mobilizing the workforce

Another inventory management best practice is to liberate the employees from their desks and allow them to perform daily tasks on the go. But employing modern technology for connectivity and cloud-based services it is possible for the staff to monitor and manage the stock levels without physically being present in the office or warehouse. Furthermore, employees might find repetitive tasks to be monotonous. So, companies must look at ways to automate these manual tasks, helping employees to dedicate more time and attention to other core tasks. Such inventory management techniques are also known to improve employee productivity.

Movable and fixed tracking options

Movable and fixed tracking option is an inventory management best practice that allows you to see where a product has been placed, how it can be accessed, and whether it is ready for shipment. Movable tracking provides insights on where items are located at all times, and it makes the entire stock management process faster, easier, and more intuitive.

Gain more insights into the inventory management solutions offered by SpendEdge

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SpendEdge’s Inventory Management Solution Helps A Leading Wholesale Retail Industry Client Market Their Products Quicker Across Different Sales Channels

Project Background

A leading wholesale retail industry client evaluated their existing B2B supply chain in China and recognized the requirement to adapt it to accommodate a B2C model, where they would be selling their products directly to consumers. The transformation required an alteration in mindset as well as capabilities that the customer did not have within their current staff.

As a result, SpendEdge suggested various types of inventory management techniques to help the wholesale retail industry client overcome their challenges.Contact US

SpendEdge Advantage

As an international strategic partner for leading Fortune 500 companies across various industries, SpendEdge’s strength lies in delivering robust real-time procurement market intelligence solutions that help companies identify the various types of inventory management techniques to make informed decisions.

Adopt the best-in-class inventory management techniques to curb costs and achieve better results. Start your 14-Day Free Trial Now!

Client Profile

A leading wholesale retail industry client based out of India was facing challenges in finding a qualified partner, familiar with omnichannel fulfillment and with a proven track record in developing solutions for companies like their own, became their main priority.


One of the primary objectives for the wholesale retail industry client was to develop a customized solution to bridge the inventory gap and incorporate different types of inventory management techniques with respect to B2C in their capabilities.

Solutions Delivered

The solution revolved around identifying the most effective inventory management techniques to fulfill both B2C and B2B needs in China. The analysis also led to the recommendation to increase the focus on a warehouse in Beijing that would allow the customer to get their products to market quicker across different sales channels. This further helped the client improve margins by cutting out the middleman. The wholesale retail industry client has also begun discussions on expanding into additional countries as a strategic differentiator.

To know more about this engagement, request a proposal or continue reading to know about the types of inventory management techniques.

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