How to Handle Large Inventory Fluctuations

Many businesses deal with seasonal demand fluctuations. Inventory levels will shift drastically from season to season. If you are not prepared for this big shift, you may feel overwhelmed during the transition. The tips below will help you prepare for inventory adjustments so you can get through every obstacle with confidence.  

Use Data from Previous Years to Predict Demand Changes

You can't always predict what the market will do, but you can certainly try. Look at sales data from previous years to see when demand levels were at their peak. If you do not have any sales data from your own store, you can research what the market was like in your industry last year. This will give you a rough idea as to when people may be buying your products, and then you can adjust your inventory levels accordingly.

Work with an Experienced Third Party Logistics Provider

Working with an experienced third party logistics provider like Overflo will ensure your fluctuations go smoothly. Our storage options are flexible, which means you only pay for the warehousing you actually need. If you buy a warehouse to run on your own, you may have it empty half of the year. You could also run out of room if the market doesn't go as planned. We know what it takes to get through every season for every industry, and we will make sure that your warehousing services meet your needs.

Your 3PL provider will also be able to take care of your order fulfillment, which means that your orders will be shipped out promptly regardless of the season. You don't have to worry about hiring or training new staff members to keep shipments going strong. The warehouse takes care of all of that for you. In the end, your customers will be happier and your business will continue to thrive.

Have a Plan in Place for Every Scenario

As a business owner, you always have to think of the best and worst case scenario. What will you do if you sell out of a certain product right away? What will you do if a product doesn't sell as well as you thought it would? This will determine your marketing and business operations throughout the year. Ask your warehouse about issues that may arise and what you can do as a team to get through them. The more prepared you are, the easier the seasonal shifts will be.

Remember That Every High Has a Low

We see this a lot with new businesses: sales will go strong for a while, so they will stock up their inventory levels to match the demand. When the demand fades, they're left with a ton of surplus inventory that they don't know what to do with. There is nothing wrong with keeping up with your customers' wants, but you have to remember that those desires can change in an instant. You don't want to stock up so much that you end up losing money in excess inventory.

With our real-time inventory management systems, you can see what your inventory levels are at all times. This allows you to restock certain areas of the warehouse only when necessary. If your sales start to decline, you won't have a bunch of extra items to clearance out. Look to the past while thinking about the future, and you will set yourself up for guaranteed success.

Contact Overflo today to learn more about our retail warehousing solutions.

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