Safety Stock: A Post-COVID Inventory Method

Warehouse Space

How safety stock is the newest method to avoid another disruption

The Just-In-Time Inventory System is associated with reduced waste and carrying costs. Before the pandemic, this method was widely used but the method’s flaws were illuminated during the pandemic. Finished goods couldn’t be produced and retailers ended up with empty shelves. Now those who oversee supply chains recognize the importance of “safety stock”.

Storing safety stock in the warehouse can help manufacturers work through disruptions. While disruptions are becoming less and less, it’s hard not to think about the “what-ifs”. We’ve all learned an important lesson about how fragile and dependent we are. In addition to safety stock, a good inventory strategy should include multiple suppliers and sourcing more goods domestically, shortening your supply chain.

Many manufacturers are facing the problem of warehouse space shortage, so safety stock may not be an option. Sometimes it’s just a matter of optimizing the warehouse space, adding a mezzanine, etc. It’s amazing how a little rearranging can clear out space for more. However, if you are a manufacturer who is still in need of space, consider partnering with a 3PL such as KTI. KTI offers flexible storage solutions and has access to warehouse space across the country – from the east coast to Texas. In addition, we are an asset-based transportation provider.

Visit our home page to read about how we can provide solutions to your problems: KTI LTD

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