4 Tips That'll Help You Prevent Product Stockout

Empty shelves in a store, whether a digital or physical storefront, cast a long shadow. 

Beyond the immediate frustration for shoppers, they either spell out supply chain problems or issues closer to home (like inefficient inventory management or misjudged demand). Whatever the reason, the result is the same – products aren’t where they need to be, meaning operational challenges turn to lost sales that turn to customers heading to a better stocked competitor. 

While stockouts are a challenge that every business faces at some point, they don’t have to be frequent with the right strategies in place. Let’s go over actionable tips that can help you stay ahead of inventory challenges.

Tips for Preventing Stockout

Creating a responsive and agile inventory management system takes some know-how. You want to have enough stock on hand to meet demand without ending up with a warehouse unlikely to clear out any time soon. 

Hitting that sweet spot generally relies on data-driven insights and knowing your customers. This may be a trial-and-error process, but will ultimately lead to a steady flow, increased margins and positive customer experience. 

However, software can help you shorten that trial-and-error process. RepSpark, for example, has integrations with your ERP that provides you with reports and data insights into your sales to help you better understand your current sales and improve your forecasting abilities. 

Here are the five tips (some with and some without technology) you can use to prevent stockouts. 

Get Familiar with Real-Time Inventory Tracking

Imagine your best-selling product flying off the shelves, but you suddenly realize you’re running low and there’s no time to reorder. To prevent it, you need an accurate and up-to-date overview of your stock levels. Leveraging software will be your best bet here.

A B2B wholesale e-commerce that you’d want to use would have integrations with your ERP so that you, and the retailers buying from you, know exactly how much product you have on hand. 

Forecast Demand Through Data

Predicting future demand may seem like guesswork, but with the right data backing your decisions, it becomes much more manageable. Reports fueled by data synced directly from your ERP will give you extremely accurate data that will help you better stock your inventory. 

To get an accurate read on patterns and dynamics of your business, look into sales info, lead times, customer behavior and external factors (seasonal changes and economic shifts). These analytics allow you to plan your inventory purchases with precision, ensuring you have the right products, in the right quantities, at the right time. 

In the event that demand is so high that you still run out of inventory, some software, like RepSpark, allows your customers to pre-order off future inventory.  

Look for Tools That Encourage Reorders 

Getting the right products in your customers' hands starts with knowing what’s in stock now and what’s coming soon. It’s just as crucial to know what’s selling fast and driving those quick inventory turnovers.

With RepSpark, you, and your retailers, can easily keep track of what’s available to make it that much easier for your buyers to reorder.  

Diversify Your Supply Chain and Retailer Network

No matter your relationship with the supplier, they might sometimes let you down. That’s why depending on a single one for all inventory can put your business at risk. 

What happens if they experience a delay? Or can no longer meet your demand? Or simply go out of business? 

Diversifying your supply chain means spreading that risk across multiple suppliers and, thus, minimizing it. Source products from different suppliers for a safety net that makes sure you have a backup plan if things go wrong. 

Not to mention the flexibility of negotiation – you can easily compare costs, delivery times, reviews and more to choose the option that fits your business best.

Similarly, you want to expand your retailer network to a point where you have a healthy and steady flow of buyers. There are times when some of your long-time buyers might slow down on their orders, ensuring that you have a growing network of retailers will help offset this. 

RepSpark has a B2B marketplace where long-standing retailers can purchase from, but also where new retailers can discover and purchase from your brand. 

Preventing product stock outs isn’t just a matter of keeping your shelves full – it’s about creating a seamless, reliable experience for your customers and maintaining the efficiency of your business operations. 

When you can consistently meet customer demand, you build trust and loyalty, which translates into repeat business and positive word-of-mouth. 

You also protect your bottom line by reducing lost sales and optimizing your inventory costs. So be proactive – don’t wait for a stockout to grind you to a halt. Take some time today to review, adjust and implement these practices into your operations.

If you'd like to learn more about planning your wholesale strategy, check out our Complete Guide to Wholesale Planning E-Book.