Unlock Exclusive Insights with the Netstock Inventory Management 2024 Benchmark Report
We are thrilled to announce the release of the Netstock Inventory Management 2024 Benchmark Report. This comprehensive report provides invaluable insights into the current state of inventory management, drawn from over 2,400 small and medium-sized businesses (SMBs) worldwide. It offers a detailed analysis of industry trends, challenges, and best practices, helping businesses navigate the complexities of supply chain management.
Netstock is a leading provider of supply and demand planning software, dedicated to empowering businesses with advanced inventory management solutions. Netstock Inventory Management is an advanced software solution designed to streamline inventory processes and enhance decision-making. By seamlessly integrating with leading ERP systems, Netstock delivers predictive insights and actionable recommendations, helping businesses minimize stock-outs, reduce excess inventory, and optimize supply chain operations.
Key Trends and Challenges
Efficiency and Uncertainty:
SMBs are increasingly adopting leaner inventory practices, with a 9% drop in total inventory value year-over-year. However, nearly 80% of these businesses still grapple with slow-moving inventory due to insufficient forward planning and overstocking.
Despite this, purchase orders surged by 16% ahead of the holiday season, reflecting a complex balance between demand anticipation and inventory management
Supplier Reliability:
Unpredictable lead times remain a significant challenge, with 72% of SMBs facing delivery inconsistencies. This issue is particularly pronounced for those sourcing from China, where lead time variability affects 67% of businesses.
The trend towards nearshoring is evident as American SMBs increasingly prefer domestic production, yet a significant portion of goods is still produced overseas.
The Excess Problem:
Excess inventory has grown to 38% of total stock, highlighting ongoing struggles with effective inventory management. Over-purchasing due to supply concerns burdens capital, especially for larger SMBs, where overstocking has risen to 44%.
The Role of AI in Inventory Management
While AI adoption among SMBs is still in its early stages, with only 23% having invested in it, the potential benefits are clear. AI can significantly enhance forecasting, inventory optimization, and demand planning. However, concerns about data integrity and security remain barriers to wider adoption.
As AI becomes more accessible, its integration into inventory management software is expected to grow, offering SMBs a competitive edge in optimizing their supply chains.
Strategies for Optimization
To address these challenges, the report suggests several strategies:
Vendor Managed Inventory (VMI) and Consignment:
These underutilized strategies can help businesses manage inventory more effectively by shifting some of the burden to suppliers, allowing for more flexibility and reduced costs.
Promotional Deals and Redistribution:
To tackle excess inventory, 74% of businesses use promotional deals. However, caution is advised to avoid resetting consumer demand expectations. Redistributing excess stock to understocked facilities is another strategy that remains underexploited.
Balancing Overstock and Understock:
Achieving the right balance between overstocking and understocking is crucial. While excess inventory can be a strategic advantage, it must be managed carefully to avoid financial strain and inefficiencies.
Assess Your Inventory Health
The Netstock Inventory Management 2024 Benchmark Report highlights the necessity of robust inventory management strategies to navigate today’s complex supply chain environment. By adopting innovative solutions and technological advancements, businesses can enhance resilience and sustain growth.
To assess your inventory’s health and optimize your supply chain, take the Netstock Inventory Health Quiz. This quick quiz offers insights into your current practices and identifies areas for improvement.
Say Goodbye to Spreadsheet Overload with Netstock
Say Goodbye to Spreadsheet
Overload with Netstock
Join our exclusive 40-minute webinar with Vaughan Proctor, Channel Account Manager at Netstock. Discover how Netstock can:
Reduce inventory levels by 10-30%: Free up working capital
Improve fill rates by 10%: Minimize stock-outs and boost sales.
Save time: Streamline planning and forecasting.
Increase visibility: Gain early warnings for KPIs that need attention.
