Wasted stock that remains unsold or goes out of date, can be a significant drain on a business’ resources. Therefore, it should be a priority for all businesses to limit this wastage, allowing for greater profit and less environmental impact. Here are several strategies that businesses can implement to reduce wasted stock effectively.

Implement Inventory Management Systems

By using an advanced inventory management system, businesses can track stock levels in real time. These types of software can forecast demand, automate reordering, and provide insights into sales trends. Over time these systems ensure that a business maintains optimal stock levels, minimising the chances of overstocking and understocking.

Improve Demand Forecasting

Accurate demand casting is crucial. Businesses should analyse historical sales data, market trends, and seasonal fluctuations to predict future demand accurately. Machine learning algorithms and data analytic tools can enhance the precision of these forecasts, giving businesses the opportunity to adjust their inventory accordingly.

Adopt Just-In-Time (JIT) Inventory

Just-In-Time inventory management is a system that only orders stock when it’s needed. This means that you only have stock in your storeroom that you need, saving you space and improving efficiency. JIT allows you to find a perfect balance between too much and too little stock making it especially useful for those in the hospitality industry, who want to minimise wasted stock.

Enhance Supplier Relationships

Strong relationships with suppliers can lead to more flexible ordering arrangements. Businesses can negotiate smaller, more frequent deliveries, reducing the amount of stock held at one time. Generally, a better relationship with suppliers results in better ordering terms and better problem solving in the face of mistakes or supply issues.

To conclude, optimising your stock intake can not only minimise waste and improve profits, but streamline many different elements of your business. Furthermore, as we become more aware of our environmental impact, implementing changes to our stock systems means we can better take care of the planet by minimising wasted stock.