For most retailers, the proper auditing and management of stocks on hand should always be done with proper monitoring and assessment. The product movement is the best way to refer to for such products, something that will surely be evident for companies who are familiar with regards to the demand for the product that they are carrying in terms of brand and consumer acceptance. The various reports that most organization prepare for overall assessment is a good tool for reference to determine the proper amount of stocks to purchase and make available for distributions to most outlets in the areas that they are covering.
There have been a lot of cases where organizations suffer a shortage and overstock due to poor assessment and forecasting of stock movement. Forecasts should never be done through mere speculations but should be assisted by necessary documents, figures and such, which is usually the expected pre-requisite for most approving bodies in an organization. Companies like San Miguel Corporation, Universal Robina Corporation and Chin Chin are good examples of companies that need to address the demand for such commodities that most consumers would look for in the market. However, the seasonal changes, peak and lean seasons, should also be put into consideration since these times are variable towards the contributing factors of product movement as well. Encountering shortages or the inability of most companies to be able to cater the demand for such products like C2, San Mig Light, Chin Chin Black Gulaman, and Powerbits Sports Drink, will leave a tarnished mark in the consumer minds with regards to the viability of a product. While this will not be immediately noticed, constant non-availability of the product will push the consumer to look for alternative products, and if so, may even end up endorsing such product with potentially better quality rather than what they are used to being exposed to. The company who fails to stock can only blame themselves in such occasions.
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Originally posted on August 17, 2006 @ 10:56 pm