El Inventory is a key point of any company that is dedicated to the sale of products. And to make sure you never run out of stock you should also worry about thesafety inventory. If you don't know what it is, we will explain it to you, in addition tohow to calculate it junto a consejos para evitar robos.
- Tips to protect your business: retail security
Running out of products available for sale is the nightmare of any business owner or director. That is why the safety inventory is avery useful tool that can save youin unexpected situations.
What is a safety inventory
If you are interestedalways keep stock available pFor unforeseen sales or situations of lack of availability of your products, you have to know and have your own safety inventory.
We are going to explain to you in detailwhat is it, how does it work, What is it for and how to calculate it . This way your company will never lose a sale due to lack of stock. Pay attention and start thinking about how you will implement it in your company.
A safety inventory is aextra amount of inventorythat the company keeps to prevent unexpected situations. It can be a protection against delivery delays, rejection of defective products or an unforeseen increase in demand.
Depending on the sector in which the company operates and its size, the amount of safety inventory will vary. If your business works in an uncertain environment, such as a national or global supply chain , it would be normal to have higher levels of safety inventory.
What is the safety inventory for?
As we have already explained, the purpose of having a safety inventory iscompensate for all kinds of unforeseen situations. If there are delays in the supply chain, or changes in demand, it ensures that the company always has enough stock.
Unlike thegeneral inventory of the company, we seek to always keep products available to correctly fulfill customer orders andavoid any loss of salesdue to lack of products.
So that you better understand the concept of safety inventory anddo not confuse it with other typesinventory we are going to show you what its main characteristics are.
This safety inventoryguarantees an additional amountof inventory that is kept in stock, it is not a section of normal inventory. It also protects against uncertainty in demand or supply, since for any problem you will already have the solution without even having to think about it.
Furthermore, this inventoryreduces the risk of out of stockfor any reason, from delivery delays to defective products. ANDprovides flexibilityto meet any type of demand from the market.
Please note that this safety inventory isdifferent depending on the type of businessand the level of risk you want to assume. And finally, one of its characteristics is that it helpsbalance storage costsand the benefits of business continuity.
How to calculate a safety inventory, step by step
La basic formula and foolproof to calculate your safety inventory is very simple. First multiply your company's usual daily demand by the days it takes to deliver products. Save that value for later and, in the meantime, add up your business's in-transit inventory and your available inventory.
Now you just have to subtract the second value (the addition) from the first value (the multiplication value). and the result of the subtraction will be the safety inventory that you should always have available. If you don't know how to convert any of the above concepts to numerical values, we will explain it to you.
La demand daily Typical is the number of products you usually sell per day (on average). Hedelivery timein days consists of the time it takes for a delivery from when you place the order until you receive the product in the warehouse.
In-transit inventory is the amount of products you have ordered but have not yet received. and theavailable inventoryIt is the total number of products you have in the warehouse, ready to be sold.
Safety Inventory Example
To make it even clearer, we are going to give you apractical examplehow safety inventory is calculated in a company. Let's assume that your company sells 100 units of a product per day (approximately) and that the supplier's delivery time is 10 days.
Let's assume that right now you have 200 units arriving at your warehouse and you have 500 units available in stock. For calculate safety inventory suitable for your company you should use the previous formula.
(Average daily demand * Delivery time in days) - (Inventory in transit + Inventory on hand). In this case the calculation would look like this: (100 * 10) – (200 + 500) = 1,000 – 700 = 300 units that you should have in your safety inventory.
If when doing the calculation, you get asresult 0, means that you don't need inventory security.
Tips to avoid theft in your inventory
It is useless to have the perfect safety inventory calculated if products disappear, whether in the general inventory or the safety inventory. That's why we bring you some tips to avoid theft. and improve the security of your warehouse.
You can implement different security measures to access the warehouse, such ascheck-in or check-out. It is also very useful to carry out periodic inventory reviews to check if there are missing products. This way you can decide whether to implement more security and control measures.
En Yoigo AlarmsWe help you protect your company and its inventory with our alarms and security devices. If you have any questions, visitour websiteor call us at900 622 550and let our professionals advise you and clarify any doubts you may have.
Best bedroom hidden cameras | Best Spy Camera Watch | Best low level CO detector | Best Wifi Router EMF Protection | Best Camera for MEVO Plus | Best Security Camera Without Subscription | Best Budget Camera for Blue Iris | Best Barking Dog Alarms | Best Free VPN for Rainbet | Best Solar Powered Security Camera | Alarmes Maison
