Packaging is important to deliver your products to customers. But, if you don’t have the required packaging in your warehouse or delivery center, deliveries tend to get delayed. This makes it important to find ways to efficiently replenish your stocks and avoid running out of packaging material inventory.
Common Causes of Inventory Stock-Outs
Stock-outs of packaging inventory can take place due to the following reasons:
- Changing market demand. As companies find ways to connect with their customers, the demand for their products can rise significantly. Unfortunately, a lot of brands scramble to stock the required packaging material to meet demands. And because they cannot predict the demand as they build their inventory, product movement can delay. The best solution to this is to partner with a company that offers warehouse-ready-to-go packaging solutions. Visit net/services/warehouse-ready-to-go/ to find this company.
- Slow-moving processes. If one process involved in inventory management moves slowly, it causes a domino effect and causes delays. Delays can take place when packaging materials are misallocated or when vendors transport materials to different locations. Furthermore, the packaging material might have inferior quality, causing time-consuming replacements. Also, if processes don’t move fast, businesses might have to deal with warehouse and vendor mismanagement.
- No transparency. Human errors can occur when managing huge inventory. Usually, brands do not refer to any inventory report or existing data to replenish stock. While managing inventory, packaging material can be stolen or misplaced, or locations might have varying SKUs. As a result, inventory managers won’t have access to accurate data. They won’t be able to visibly track shipments along the supply chain.
Avoiding Inventory Stock-Outs
To avoid stock-outs, you must audit your packaging material inventory and calculate safety stock to cushion the rise and fall of product demands. Also, it is important to determine the logistic requirements of your requirements. Your packaging supplier plays a significant role in managing your inventory. As they supply the material, you will be able to meet demands. If your packaging partner does not function in a timely and organized way, you will be out of stock. That is why you must choose a reputable partner, particularly one that offers warehousing and storage solutions. The best packaging material provider can manage your inventory for you. They use state-of-the-art systems to determine the reordering point. They can take control of your packaging material stock and ensure you always have packaging materials to meet current demands.