Out of stock occurs when an item is not available at the time the customer is ready to buy it. Out of stock has been found to be one of the main factors influencing customer satisfaction.
The consequence of not having a certain product, size, quantity, sizes, etc., is that the customer becomes frustrated and may lead him to make his purchase in another business, indeed, it may lead him not to return to that establishment.
According to research, 70% of customers who are in this situation for the first time in a business, will replace the product with a similar one, the second time the response is divided equally between those who buy a similar item, those who they leave without buying and those who go to another establishment, on the third occasion there is a 70% probability that they will go to another store and will not return in the future.
Clearly there is more at stake than a single lost sale, we must do everything we can to safeguard customer loyalty and reduce the chances of them becoming familiar with other retailers and channels, to avoid such situations you can consult inventory management companies having vast experience in this field.
The best techniques for inventory management are:
Traceability of shipments:
This point is essential in logistics companies. In these, it is necessary to contact best inventory management companies so that they can provide you exact information about the inventory, both internally in the warehouse and for shipment to the customer.
In this way, the company will have the merchandise located at all times, and will provide added value to the customer, by allowing them to have information about the location of their order.
As an entrepreneur, you must maximize the profitability of inventory management. Keeping a chaotic warehouse will have negative consequences. One is that the merchandise deteriorates more quickly, since it will be handled more frequently.
In this sense, determining a good “logistics layout” will allow you to maximize the most valuable resource, time.
For example, you must ensure that the merchandise is located in the loading/unloading area at the same time that the transport is presented, and not before. In this way, you prevent the merchandise from being displaced for any reason (mobility, space, mistake, etc.).
The merchandise must be distributed taking into account the weight and volume of the different articles. The heaviest on the lower shelves; and lighter merchandise in the upper spaces.
The products with the highest turnover should be located in the part closest to the access to facilitate their location.
Goods that are difficult to transport should be provided with their own space that makes handling, loading or transfer as easy as possible.
It is essential to physically separate those products that by their nature (liquid, chemical, or fragile) can deteriorate or damage the rest of the stored items.
You must plan the layout of the warehouse taking into account the security measures, both for the load and for the operators who work in it.