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Stockouts, or out of stock situations, occur when inventory is unavailable to customers, resulting in a loss of revenue and potentially the loss of a customer to a competitor. To avoid stockouts, businesses must take proactive steps to manage their inventory effectively.

What causes a stockout?

Stockouts are a common challenge for businesses, as they are often unexpected and beyond your control. Production delays, logistical issues, and human error can all contribute to an inventory stockout. Delays in production can cause unforeseen fluctuations in demand, while logistical issues can disrupt the flow of goods throughout your supply chain. Additionally, errors in forecasting or supply planning can result in a stockout even if you have enough on hand to meet current demands.

How to prevent a stockout

A stockout is a business’s worst nightmare. Not only does it mean lost sales and unhappy customers, but it can also lead to production delays and a loss of market share. Fortunately, there are several steps businesses can take to prevent a stockout from occurring.

One of the most effective ways to prevent a stockout is to partner with a 3pl fulfillment company. A 3pl can help businesses keep track of their inventory levels and ensure that products are always in stock. In addition, 3pls can provide businesses with safety stock levels, which can be used to cushion against unexpected spikes in demand.

Another way to prevent a stockout is to carefully monitor production processes and identify potential issues early on. By doing so, businesses can make the necessary adjustments to their forecasting models and avoid the costly mistakes that can lead to a stockout.

Optimize your supply chain

To optimize your supply chain logistics, it is critical to have a clear understanding of your inventory flow and management. This can be achieved by utilizing data-driven tools that provide insights into your inventory levels and distribution channels. One effective strategy for optimizing supply chain logistics is to partner with a 3pl fulfillment company, that has the latest ecommerce integrations into major marketplaces such as Amazon, Shopify, WooCommerce, BigCommerce  and eBay. Through these fulfillment integrations, you can stay on top of fluctuations in demand and ensure that your products are always available when customers need them.

With the holidays 6+ months away and supply chains still not fully operating it is more important than ever to have a trusted partner to help with your inventory management to avoid stockouts. Contact us today to learn how Badger Fulfillment Group can help with your inventory.