The need for supply is necessary and almost vital for all retail business that must maintain a constant production flow.
How to determine how much product your store needs?
Usually, the answer to this question is simple, but it is not as simple when we have to consider a business that owns several sales centers (warehouses). You can determine the necessary supply, by subtracting orders from customers from the stock, and, if the stock is not enough, by ordering the difference from Colorado distributors.
In the case of companies that have several warehouses, the supply will be made in stages, each regional warehouse placing supply orders to the logistics center, and the central warehouse will centralize them and issue the order to the supplier.
Parameters used to calculate product needs:
- Average Daily Sales Speed
- Seasonal adjustment
- Orders from customers (not covered by stock!)
- Optimal supply quantity from suppliers
- List of suppliers from which the respective products can be ordered.
- Standard delivery time of products by suppliers
An ERP system would be very necessary to know how much product your store needs, offering total transparency on how this need was calculated: reports, situations, graphs, trends etc. A responsible manager is the one who decides whether to accept the system proposal or operate changes.