Forecast at SKU level with lead time reality
Blended averages hide the products that actually move. Forecast each SKU using recent velocity, seasonality, planned promotions and the true lead time from purchase order to marketplace availability, including inbound receiving.
Reorder points should be expressed in days of cover, and reviewed as lead times shift.
Protect rank on your top items
A stockout on a top-ranking product is not a pause in sales. It is a loss of position that takes weeks and advertising spend to rebuild. Higher safety stock on a small number of critical items is usually the best risk-adjusted use of cash.
Deal with slow movers early
Ageing inventory quietly compounds storage cost and blocks capital that faster products could use. Set a review threshold and act on it with bundles, price action or exit, rather than waiting for long-term storage fees to force the decision.
Key takeaways
- •Forecast per SKU with real lead times.
- •Over-protect stock on rank-critical products.
- •Set an ageing threshold and act before fees decide for you.
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