When you are a manufacturer and you are working on an order, and realise that you are out of necessary component because of the increase in demand for products. And then you have to wait for that particular item to arrive so that you would be able to complete the order for your customer and then ship it.
And in this kind of situation, the customer experienced would have a negative impact which would be a completely preventable challenge. And this you would have been able to completely avoid if you were carrying inventory stock (สต๊อกสินค้า, which is the term in Thai).
What is Safety Stock?
This is also sometimes known as the buffer stock. And this is the level of extra stock that is maintained so that even if you run out of any kind of raw material or there is sudden uncertain supply, this would suffice the main purpose of this is that once you have run out of cycle stock during a certain period, you would still be prepared for the orders and keep them going with the help of inventory application (โปรแกรมสต๊อกสินค้า, term in Thai).
To keep the customer service levels high, having stock inventory in a securely calculated measurement would be beneficial for you at the end. Here are 3 primary reasons why you should be carrying out a stock inventory and how it would be beneficial for you at the end. This would be more than just being safe or a ‘nice thing’ to have.
For most industries, it has now become a necessity. And here are 3 main reasons why mid and small businesses should carry on with it.
Protect Against Variation:
If you see that your supplier would be close for a week and ether is any disruption in order transit, you would not be wasting any time with the help of inventory stock.
Compensate for Forecast Inaccuracies:
Perhaps you have a consistent demand but you sell more in one month while the other month you do not. And with safety stock, you would not be hampering customer service.
Prevent Disruptions in Deliveries:
You would face no disruption when you would be manufacturing and delivering things. Your customer contentment level would be elevated. Your supply chain would run smoothly as well.
Thus, these are some of the best ways you would be able to avoid stock-outs to keep your customers satisfied with inventory application.
