Articles

Inventory Management

Pipeline Inventory: How To Manage It and Why It’s Important
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Pipeline Inventory: How To Manage It and Why It’s Important

Pipeline inventory plays a crucial role in the smooth operation of businesses across various industries. Simply put, it refers to the goods that are in transit between the manufacturer, distributor, or retailer and are not yet available for sale. Properly managing this type of inventory is essential for maintaining efficient supply chains, reducing costs, and […]

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Inventory Cycle Counting: Definition, Benefits, and How-To
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Inventory Cycle Counting: Definition, Benefits, and How-To

Cycle counting is a crucial method in inventory management that helps businesses maintain accurate records without halting their daily operations.  Unlike traditional physical inventory counts, which can be disruptive and infrequent, cycle counting involves regularly auditing small portions of inventory.  The main advantage of cycle counting over traditional physical counts is its ability to provide […]

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Inventory Turnover Ratio: What It Is, How to Calculate and Significance
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Inventory Turnover Ratio: What It Is, How to Calculate and Significance

Understanding the inventory turnover ratio provides invaluable insights into a company’s operational efficiency and financial health. It measures how often a business sells and replaces its stock within a given period, offering a clear snapshot of inventory management efficiency.  An optimal inventory turnover ratio measures indicates a company sells goods quickly, suggesting strong customer demand […]

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4 Types of Inventory
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4 Types of Inventory

Understanding the various types of inventory is crucial for effective inventory management. The four basic types – raw materials, work in progress, finished goods, and MRO inventory – form the foundation of most inventory systems. Managing these efficiently ensures a smooth production process and reduces costs.

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Demand Planning vs. Supply Planning: Key Differences and Value
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Demand Planning vs. Supply Planning: Key Differences and Value

Demand planning vs. supply planning remains a cornerstone debate in the logistics sector. Both concepts are integral to supply chain management, determining many businesses’ efficiency, cost-effectiveness, and overall success. Recent studies indicate that organizations that effectively balance demand planning and supply planning see up to a 15% increase in forecast accuracy and a 35% reduction […]

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Inventory Management: Definition, Types, and Examples
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Inventory Management: Definition, Types, and Examples

Effective inventory management is the unsung hero of successful business operations, whether in the bustling retail world or in systematic manufacturing processes.  It’s a critical component that can dictate a company’s ability to meet customer demand, manage cash flow, and maintain a competitive edge.  According to a report by the National Retail Federation, the retail […]

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Backorder: Meaning, Causes, and How to Limit Them
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Backorder: Meaning, Causes, and How to Limit Them

Understanding what backorders mean, their causes, and how to limit them is essential for businesses and logistics professionals. As supply chain disruptions become more common in today’s global economy, managing backorders effectively can make or break a company’s success.  In this article, we explore the ins and outs of back-ordered items to equip businesses with […]

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This Ain’t Your Parents’ Inventory Cycle
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This Ain’t Your Parents’ Inventory Cycle

Speculation has been mounting that the inventory cycle is back. Profit warnings by major American companies such as GAP, Walmart, and Target that had taken on excess inventories and now needed to run them down raised concerns that a concerted drawdown of stocks could make a likely U.S. recession worse.

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