Can you spare a square?

Admit it -- We’ve all ran into a store last minute buying toilet paper because we ran out at home. Your relief is overwhelming when you stand at the check-out line with the two 24+1 bonus larger than life packages. While embarrassed, you’re just excited that they actually had the brand you wanted and that there was more than one on the shelf. Your deep sighs of relief stem from a consistent history of the store always being out of what you need. Just because we forget and need something last minute, why does that matter? It’s an item that is in high demand – shouldn’t the shelves be overflowing with cute Charmin puppies by now?

Chances are you have visited a store that does not utilize an automated inventory control system, or does not use it effectively. One of these control systems is called “Just-in-Time (JIT)” inventory. This method of controlling inventory allows a store to know at any given time exactly how many of any item is on the shelf. This allows them to set up par levels, or minimum levels, and instructs the system to atomically order more of that item from the supplier when it gets below a certain point. This ensures the item will always be in stock. Management not only prefers this automatic inventory control system because it saves staff time and energy manually counting items each day, but it saves from having to pay the supplier money for inventory that isn’t in demand and just sits on the shelf. With lower production costs, more efficient employees, and automatic ordering, how could a store go wrong?

For starters, their suppliers must be reliable. If their suppliers have long lead times or their shipping dates have been unreliable, it makes it a challenge for your store to order the quantity it really needs. If it’s an item that is difficult to forecast sales on, then the inventory level might never be right. But with the right reliable supplier and up to date trends analysis on certain products like games, a store can always have what you need, when you need it. Because when you run next door to your neighbor’s house and ask to borrow some toilet paper, I doubt they are going to take the excuse that “my store doesn’t make effective use of their inventory control system.”