To maintain sales continuity. Healthy inventory needs to be replenished in time, but blind replenishment is also a reason for inventory backlog. The best-selling cycle is short, and there are two replenishment models:
One is the economic quantity, which determines the order according to the principle of minimum payment per unit product;
The second is the reorder point. Due to the small demand volume and uncertain cycle, appropriate “safety stock” can be used to buffer or compensate for uncertain factors.
Safety stock is only a reference, and should not become a dogmatic restriction on actual operation. Online sales are highly volatile and have poor predictability. The deviation of market judgment should be adjusted in time, and it must not be confined to a certain optimization model. The model is based on a relatively mature market model and assumptions.
Ideal inventory is based on the forecast of demand. By simulating a future time point of the product, early stocking, price reduction, return and other predictions are made. But this is also the most difficult. No matter how much sales data there is, it can only present facts and trends. Under the interference of models such as monthly average prices and market demand regression, decision-making is not easy.
In short, inventory management is the top skill in the supply chain. Cross-border e-commerce companies must achieve two basic points:
First, if the sales volume of hot-selling products is large, they cannot be out of stock, and an inventory warning value must be set;
Second, dynamic replenishment, inventory analysis and replenishment cycle analysis based on sales conditions, to ensure that the inventory is at a reasonable value, remember that there is no forever hot-selling product, and timely adjustment and control of inventory.