Inventory management is all about getting the right amount of product, at the right price, at the right time, and in the right place. Of these, Target Canada got one thing right. They purchased their products at the right price.
As seen above, Target Canada ordered too many products due to over optimistic forecasting. Also, because they failed to establish proper guidelines for entering data, there were instances of overseas shipments being held up because the products couldn’t fit into shipping containers as expected, or tariff codes were missing.
But perhaps where Target Canada really failed was in their ability to get their products into the right place at the right time. Consumers were encountering barely stocked stores while distribution centres were overflowing, and the existing software didn’t help. It indicated products were in stock even though the shelves were empty, and this exemplified the disconnect between the management and the actual store situation.
In fact, all this happened because Target Canada chose a ready made solution over adapting their existing technology from the U.S. But the problem was that even though they chose top-of-the-line inventory management software, ;the staff at Target was unfamiliar with it.
Choosing the right inventory management software is key to your business. After all, it stores all the information about your products. With inventory management software, you’ll be able to access accurate inventory information in real time whenever you need it.
On top of that, the right inventory management software can provide you with the business intelligence you need to succeed. With business intelligence, you’ll always know your bestselling products, or how your sales are performing according to channel.
If you’re trying to decide if a particular inventory management software suits your business, it’s always a good idea to sign up for a trial account.
This article was written with reference to THE LAST DAYS OF TARGET.