The state of the supply chain has been in limbo. Following what seems like years of supply chain shortages and delays, companies now face mounting economic uncertainty paired with lower consumer demand. Not to mention the rising cost of warehouse storage is adversely impacting inventory. According to WarehouseQuote, national storage pricing is up 1.4% month-over-month and 10.6% year-over-year.
As storage costs increase, companies are forced to decide which items to store and which to get rid of, reducing the number of items kept in stock. This also minimizes the amount of products available for sale, potentially leading to shortages and worse – lost sales and value of the inventory.
With overall inventory costs increasing and fluctuating consumer demand, businesses are looking for ways to battle warehouse woes without hindering their bottom line.
So, what can you do?
Maximize Warehouse Space
A major issue businesses face is inventory levels are at maximum capacity. Companies can employ a variety of strategies to combat rising warehouse storage costs. They can start by reducing the amount of inventory they keep on hand by utilizing predictive analytics to better forecast customer demand. This can be achieved through warehouse automation, inventory tracking, and other strategies such as cross-docking and just-in-time inventory management.
Additionally, companies can consider implementing an inventory optimization system to identify the best locations to store inventory and maximize efficiency. Implement a just-in-time delivery system to ensure they only have the right amount of inventory when needed.
Create A Smooth Operation
Inventory transparency offers critical benefits across your company’s supply chain, especially when it comes to new customers, inconsistent consumer spending patterns and overall economic uncertainty.
Each year, billions of dollars are lost on mismanaged warehouse management and processes. Whether it be improper employee training or poor storage techniques, ensuring inventory visibility at all times across your company’s entire supply chain allows for an accurate assessment of issues, demand cycles, consistent employee practices and distribution methods.
A Consumer Conundrum
Understanding consumer sentiment in times of economic uncertainty can be quite a challenge. Here are a few tips to keep in mind when trying to combat low consumer demand:
- Offering sales and discounts can incentivize consumers to purchase a product or service if the price is right
- Improving customer service is essential to gaining consumer trust and loyalty and potentially turning those customers into brand loyalists
- Leveraging digital channels, such as social media, can help companies build relationships with customers and stay informed on the latest industry trends that can be used to improve marketing campaigns or product offerings
- Leverage targeted marketing campaigns to focus on areas where consumer demand is highest and be tailored to the needs of the target audience
If your company is struggling with tight budgets and cannot afford to create a full marketing campaign, consider seeking a partnership with Net Trade!
Net Trade partners with leading advertising and media agencies to secure the best media value for our clients. Trade in your company’s surplus inventory for valuable ad spend. Net Trade works with all types of media, including highly targeted digital media, so your company message can connect with clients across screens and keep your business moving forward.