Optimizing Inventory Management to Prevent Over-Ordering and Stockouts

Before integrating NeonPanel, Florida Deals relied on spreadsheets to manage inventory planning. This manual approach presented several challenges:

• Calculating production and transportation lead times, safety stock levels, and sales velocity was a constant struggle, full of errors and wasted time..
• A lack of accurate demand planning led to frequent stockouts for high-demand SKUs and excessive inventory for slow-moving products. The other popular software solutions they used before had just an emulation of the stock velocity prediction feature.
• Planning based only on historical data, without considering production, delivery, and customs time, led to missed opportunities or overstock
• Tracking inventory levels across multiple warehouses, including third-party and Point-of-Sale (PoS) warehouses like Amazon FBA, was fragmented and unreliable.

To address these challenges, Florida Deals implemented NeonPanel, leveraging its advanced inventory planning and demand forecasting capabilities. Key solutions included:

1.Comprehensive Demand Planning.
• NeonPanel enabled Florida Deals to track safety stock levels, production lead times, and sales velocity automatically.
• The system calculated reorder points, helping the team purchase new inventory at the right time to prevent stockouts and over-ordering.
2.Sales Plan Integration.
• Florida Deals uploaded their sales plan into NeonPanel, allowing the system to account for planned promotional activities, ensuring adequate stock levels even during demand surges.
• NeonPanel combined historical data, seasonality trends, and promotional plans to provide precise forecasts.
3.Efficient Replenishment Scheduling.
• NeonPanel tracked inventory levels across multiple warehouses, enabling Florida Deals to plan FBA shipment schedules effectively.
• The system provided clear insights into when to transfer inventory from third-party warehouses to Amazon PoS warehouses to avoid stockouts.
4.Optimized Capital Efficiency.
• NeonPanel’s precise planning eliminated the need to carry excessive safety stock, freeing up working capital for other growth opportunities.

In the first six months of using NeonPanel, Florida Deals experienced transformative results:
1. Stockout Prevention

• Stockouts for high-demand SKUs decreased by 95%, ensuring consistent sales and customer satisfaction.

2.Reduced Overstock

• Over-ordering dropped by 40%, improving capital efficiency and reducing unnecessary inventory holding costs.

3.Optimized Replenishment

• NeonPanel’s FBA shipment planning ensured PoS warehouses were always stocked appropriately, reducing last-minute shipping fees by 30%.

4.Improved Forecasting Accuracy

• Incorporating promotional plans and seasonality trends improved inventory forecast accuracy by 85%, ensuring smoother operations during peak periods.

4.Time Savings

• Automated inventory calculations saved the team over 15 hours per week, allowing them to focus on growth initiatives.