Consumer spending is increasing and given it is driving over a quarter of GDP growth this year, it is an important sign of economic life picking up as restrictions ease. In fact, the CBI is forecasting that the UK economy will return to pre-Covid levels by the end of 2021, a whole year earlier than previously expected.
How to capitalise on the opportunity
There are real glimpses of optimism for the retail sector and consumer demand is clearly playing a vital role in driving the economy.
But it will be up to inventory planners and supply chain management teams to manage what may still be a volatile wave of demand.
Increased consumer demand doesn’t guarantee increased sales. Effective demand planning requires skills and focus, and when it is done well, it drives sales. Being able to harness any patterns emerging across thousands of SKUs requires supply chain management teams to have a strong grip on the available data and to be able to use it to generate valuable insight.
Harness the data
The most effective teams will be able to:
- Forecast more accurately and retain high service levels without relying on excess safety stock
- Develop relationships with key suppliers to ensure products consistently arrive when needed and in the right quantities, based on optimal pricing models
- Build stronger relationships with clients to drive increased sales based on improved service levels.
Those inventory planners who will be driving sales will:
- Have clear insights into their inventory key performance indicators
- Use inventory classification to improve accuracy of forecasts and avoid excess inventory or stock-outs
- Review inventory data and adjust planning to optimize for service levels and margin.
Boost sales through demand planning
Taking stock of your inventory is like having a roadmap for each SKU. It allows for improved demand planning, showing where attention should be focused and allowing strategic supply chain segmentation – directing resource and capital investment to the areas where they can deliver optimal returns.
The opportunity for increased sales is there in the economic recovery, but it takes effective demand planning with tools like the AGR software to capitalise on the potential. To learn more about how AGR Dynamics can help improve your methods and boost sales, get in touch today.
