Proper management of seasonal stock in the warehouse is key to efficient logistics. The goal is for the company to be able to fulfill orders in the high season.
In a scenario where e-commerce promotes product seasonality and the proliferation of SKUs in the warehouse, digitizing inventory management is an effective solution to absorb peaks in demand and adapt to seasonal changes.
What is seasonal stock?
Seasonal stock is stock that experiences increased turnover at certain times of the year, i.e., it is sold at a higher rate during certain periods. This type of stock is characterized by seasonal demand, so the warehouse must have flexible supply logistics that allow for increasing or decreasing the quantity and location of products depending on the season.
To achieve efficient management of seasonal stock, the logistics manager must consider factors such as:
- Duration of the seasons: identification of periods of high demand and off-peak times, as well as how long they last or how they alternate. Knowledge of product demand is a decisive factor in good stock control.
- Supply lead time: seasonal stock management must also consider product supply policies. Periodic analysis of the demand for each item makes it possible to develop procurement strategies that improve the company’s logistics.
Based on these factors, logistics managers identify the turnover of each SKU and design and implement logistics strategies that enhance warehouse performance. For example, techniques such as chaotic binning or flexible slotting can be used to ensure that the products with the highest turnover are located in the most accessible locations for the operators.
Strategies to control seasonal stock
To control seasonal stock, it is necessary to analyze the characteristics of the stored references, as well as the seasonality of demand. Implementing strategies that make it possible to forecast product demand facilitates seasonal stock management: the warehouse can replenish itself with the right amount of merchandise to meet customer orders without incurring storage cost overruns.
Based on knowledge of stock status and demand, the logistics manager must design a strategy that enhances accessibility to the fastest-moving SKUs. However, the seasonality of products requires a flexible logistics structure, which is capable of scaling resources in the high season and adapting needs when product demand is reduced.
In warehouses with a high percentage of seasonal stock, a very effective logistics (and production) method is just-in-time. This strategy is based on the premise that the warehouse receives raw materials or products only when orders are placed. In other words, the company has the exact quantity of references at the right time to meet the demand for products.
Another efficient strategy for managing seasonal stock is on-demand warehousing, which consists of outsourcing operations such as receiving, warehousing, or order preparation to a logistics service provider for a specific period of time.
Implement seasonal stock in your operations
The consolidation of e-commerce has increased the complexity of logistics operations, especially for companies that sell products with high seasonality. In this scenario, efficient inventory control is essential to ensure optimal stock levels.
There are multiple strategies that favor seasonal stock management, such as just-in-time logistics methods or on-demand warehousing. However, seasonal inventory control involves digitizing operations, and Xborder will aid you in the whole process.
With over ten years of experience, Xborder offers a range of technology services that have been specially designed to facilitate any e-commerce operations. We can provide you with up-to-date technology-oriented solutions by combining development services, integrations, and security. For further information, please visit www.xborder.co.