Inventory management is the most fundamental aspect of sales work and a prerequisite for successful sales. So how can we achieve effective inventory management? Based on the sales characteristics of the meat products industry, and taking Shuanghui alliance partners as an example, I would like to share some personal insights from my own work experience.
Scientific forecasting of weekly orders is key to controlling inventory. Since the implementation of weekly orders, it has played a positive role in improving product freshness and maximizing market demand satisfaction. However, only well-prepared weekly orders can achieve this effect. This requires making vertical comparisons based on market changes and sales data from the same period last year, conducting horizontal analysis, and combining the situation of each individual product, inventory, in-transit goods, and unshipped plans to make a reasonable and scientific forecast, ensuring that weekly orders align with both the market and inventory.
Strict adherence to rules is the core of inventory management. To manage inventory well, it is essential to first establish a comprehensive, scientific, and practical management system, such as warehouse in/out management rules, fire prevention rules, theft and rain prevention rules, and defective product storage and sorting rules. Product outbound must strictly follow the "first-in, first-out" principle. Additionally, a complete product in/out and sales ledger should be established, including product name, specification, quantity, production date, and inbound date. When outbound, the ledger should be updated accordingly to allow real-time tracking of inventory levels and dates.
Reasonable customer inventory is a guarantee for healthy market operations. The size of inventory is also an important indicator of sales performance. If inventory is too large, it indicates poor product movement or operational issues, possibly due to blocked wholesale channels. Under current conditions of ample supply, if inventory is too small, it suggests problems with supply organization or inadequate planning, leading to coordination issues. So what is the safe inventory level? The month-end inventory should be controlled at 25-30% of monthly sales. During market operations, it is crucial not to resort to pushing inventory to meet sales targets, as this harms both customers and the Shuanghui market.
Ensuring freshness is the core competitiveness of products. Food products differ from other goods as they have a shelf life. They can be sold within the legally stipulated shelf life; otherwise, they must be removed from shelves and destroyed. As the saying goes, "Antiques appreciate with age, but food depreciates the longer it sits." The market has fully validated this—product freshness is also competitiveness. Based on our product attributes and characteristics, fresh products are delicious and appealing with a rosy color, while aged products lose their taste. Currently, consumers pay special attention to production dates. This fully demonstrates the importance of product freshness. Given Shuanghui's product characteristics, high-temperature products should not exceed two months from the production date in the warehouse, and medium-temperature products should not exceed 30 days. Exceeding these limits indicates aging, which affects wholesale distribution. Proactive measures should be taken to resolve this as soon as possible to minimize adverse effects on the market. Depending on the product situation, measures such as increased promotions, special offers in supermarkets, bundle sales, or one-time disposal through special channels can be adopted. The sooner it is handled, the better; do not wait, as it becomes harder to deal with and losses increase over time.
Expanding terminal channels is an effective way to reduce inventory. After goods are stored, every effort must be made to sell them through all terminal channels. Actively expand terminal outlets to effectively reduce inventory, alleviate inventory pressure, and capture the largest market share. Especially for wholesale channels, aim for maximum shelf occupancy. This can be achieved through tiered rebates and combined promotions to secure a month's worth of warehouse space in wholesale. This not only effectively reduces alliance partners' inventory but also accelerates capital turnover and prevents wholesalers from stocking competitor products, effectively blocking competitors. For terminals, ensure full shelf display and prominent image to effectively drive sales. For products sold in supermarkets, especially those with large inventory, coordinate to have supermarkets place sufficient orders and effectively occupy their warehouse space. If supermarkets have more of our products, they will also think of ways to help move them.
Increasing promotional efforts is a proactive measure to clear slow-moving products. If large inventory arises due to other reasons, proactive action is needed to digest and handle it. First, check whether terminal stores are fully stocked; if not, intensify distribution efforts. Second, check whether wholesale channels have fully occupied warehouse space; if not, increase promotions to seize competitor sales. Third, assess the quantity of our products in special channels and catering channels. For slow-moving aged products at terminals, recover and handle them as soon as possible. Some products expire mainly due to untimely exchange or accumulation, the so-called "ten or eight pieces phenomenon," which also leads to terminals being unwilling to sell our products.
The market does not wait, and product dates do not wait. Rapid digestion and turnover of inventory can bring substantial returns to customers and healthy market development. Products lying in the warehouse will never turn into profit. For a century-old Shuanghui, for building an impregnable market, and for achieving win-win cooperation between manufacturers and distributors, let us join hands to strengthen inventory management, so that we can move forward lightly in a fiercely competitive market!
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