You're facing seasonal fluctuations in product demand. How do you decide which items to stock more of?

ABC / XYZ Trend analysis can come in handy when deciding on inventory strategy. A = High Selling, B = Medium Selling & C = Low selling Products and Y (out of XYZ) is typical seasonal demand. It is important to understand that the same product could be categorised differently in different Distribution Centers - hence ABC/Y analysis needs to be done at the DC level if possible. Effectively, AY can have larger share, BY can have Medium & CY can have relatively lower share in Stocking strategy at respective DCs. This can be aggregated & cascaded back to Production sites to help them plan accordingly.

Analyze Historical Data Review past sales data to identify seasonal patterns and trends for each product. Determine which items see spikes in demand during specific times of year. Prioritize High-Demand Items For products with a proven track record of increased seasonal sales, stock higher quantities Implement Just-In-Time Inventory Use a JIT model to minimize excess inventory of slower-moving seasonal items. Order smaller quantities more frequently Communicate with Suppliers Share your seasonal demand forecasts with suppliers to ensure they can meet your inventory needs during spikes. Leverage Data Analytics Utilize demand forecasting software and machine learning algorithms to generate more accurate predictions of seasonal sales.

Stocks are capital tied up, demand should correspond with supply. Seasonal products should be stock in relation to its demand. Any changes in market demand should have a corresponding change in the stocks. Storing materials with no demand will affect the profits of the organization.

I would think in a strategy where it analyze forecasting to determine your base line and trend from that point. This would help to determine when products need to be available. Once a forecast model is chosen for a particular item, it may be necessary to make changes to that model as the life cycle of the product changes. All products go through stages that include introduction, growth, maturity and decline. Start efforts around CPFR- Collaborative Planning, Forecasting and Replenishment. Please refer to "CPFR originated with WalMart and was piloted with Warner Lambert."

Selling plants in the NE is a very short window. Your peak sales are April to Mid- July. Knowing how to optimize sales in that time frame is important. If you miss a trend or "micro-season" as I called it, you lost sales. We learned from our sales report that we had trends or micro seasons with our plants. Basically when they were ready to bloom or in full bloom is when they sold best. Certain Plants only bloom at certain times so we had a Peony trend, an Iris trend, and so on. We were able to order effectively by using previous years sales history and adjusting for any new factors such as new varieties, sales promotions, and/or increased interest from our customer.

Customers if you get to know them and listen to them will provide you with the items that are in demand currently. Each holiday season the smart retailers clean up because could identify this season hot items before their competitors.

Customer feedback is a blessing in disguise so utilize it to the benefit of the company. it help to show or review where the company might need to adjust or improve.

Don't operate in a vacuum; look at what your competitors are doing. If they're stocking up on certain products, it might indicate a trend worth following. However, be cautious not to mimic every move they make. The goal is to find a balance between meeting market demand and maintaining your unique value proposition. By carefully observing competitors, you can identify gaps in the market that you might fill, potentially capturing a segment of customers looking for something different.

Competitors are good for the business if your organization knowns what they are doing in the market space, this give you insight to know what your next move will be in the market place to set your company above other with the right approach.

Inventory is the life safer of any given establishment, if there is no proper inventory measures in a company the company will be face with challenges of not knowing if they made profit or they fall short, this will enable the company to have a proper bookkeeping allowing them to know what they sold, bought or damaged so that the needful can be implement.

Working with your suppliers can create opportunities and possibly give you insight into seasonable trends. When I purchased plant stock for the garden centers, I would regularly consult with the growers on current stock. We were located in the NE United States. My suppliers were usually up to date on new varieties and trends in the market. They would advise on quantities to purchase. For example, if they had something that was popular, they may suggested I increase my order because I probably wouldn't get a chance to re-order. In some instances, the growers were so confident that they would offer consignment deals.

Supplier relationship is a key factor to a given organization, when this is establish the company enjoy delivery at it very best without compromising, in the other hand the company must be up and doing both in communication and timely request to guide against unforeseen situation.

“Seasonality word itself is an indicator to alert you to your requirements. Therefore, we must follow our demand forecast and closely track the market to avoid major impacts due to seasonal fluctuations.”

Para garantizar que SKU debería mantenerse con un nivel de inventario adicional, se debe evaluar el accuracy de los forecast presentados por el área comercial y considerar los ajustes previo a los planes de abastecimiento. No obstante, ante eventuales picos, desde las áreas de Logística se deben asegurar inventarios de seguridad que deben considerar una cobertura de al menos 1,5 meses (tener en cuenta los tiempos de reabastecimiento). Tiempo en el cual permita a la compañía replantear la planeación de la demanda y preparar a los proveedores para ello. Evaluar constantemente su rotación podrá mitigar quiebres de inventario.