If you’re in the manufacturing industry we know that you’ve dealt with the endless bugbear of excess stock, or dwindling supplies of your most popular products. When this happens, there’s pretty much nothing you’d like more than for your partners – whether they be marketers, vendors, dealers or subcontractors – to flog the product you’ve got too much of.
For many manufacturing companies, inventory represents the largest single investment of their total assets. Here’s why:
Inventory itself is expensive. To hold inventory, companies need to pay for storage, security, picking and handling, insurance, and so on. Thus, measuring and controlling investment in your inventory is of the utmost importance for ensuring profitable operations.
Experts agree that effective inventory management goes hand in hand with demand forecasting. That means that your company and its channel partners have to store and monitor data about consumer demand. Only with a clear sense of what demand will look like in the short and medium term, can stakeholders develop a clear and effective strategy for managing their inventory.
Is there a solution?
Well, robust engagement technology has inbuilt inventory management software which means you can easily manage your products, whether you have one Stock Keeping Unit (SKU) or thousands. Clearing your inventory doesn’t have to be the headache it once was.
Intelligent cloud-based technology enables you to store and incentivize the collection of data about consumer buying habits, so that you can in turn report on and evaluate buying patterns and develop an accurate demand forecast.
Using retail inventory management functionality your manufacturing company can clear inventories by incentivizing marketer and store-based promotions. That means channel partners get points towards rewards based on sell-in of particular products. Marketers and vendors can push those products and lay off others by offering discounts, extra product information, promotions, or by simply guiding customers towards one product over another.
Engagement software automates the inventory control process, making clearance less of a drag and more of a pleasure, for you and your channel partners. You get to engage the whole chain, from marketers to sales partners, reduce your excess inventory and increase sales, while your partners gain rewards and improve their commercial condition.