Information About Reducing Stock Days

Stock in warehouse is kind of current asset which can be counted in cash. Keeping
stock for more days can affect business. The money can be invested in other business activities.

 To reduce stock days following are some of ways.

1)Improve your data and improve inventory management:-By improving data

collection you can manage stock. It is like keeping stock of only those goods which have high
sales or high use. This will help in managing the stock period.

2)Improve Demand forecasting:-The best way to reduce stock days is to get rid off slow
moving inventory.

High quality demand forecasting can more accurately identify which products have
been popular in consumers in past. By this we can only order needed goods as per requirement
and time. Which will help to reduce stock days.

3)Lean inventory management:-

i. Implement lean principles as just-in-time (JIT) inventory management. This
strategy aims to have inventory arrive just as it is needed for production or
sell, minimizing holding cost.
ii. Just in time Principle(JIT) principle are particularly important in manufacturing
to minimize storage costs and ensure production flows smoothly.

4)Reduce lead times:-

i. Shortening lead times is crucial in manufacturing to maintain efficient
production schedules and minimize the lead for large safety stock levels.
ii. Strategies such as improving manufacturing processes, optimizing
transportation logistics, and using local suppliers can help to reduce lead
times.
5)Safety stock optimization:-Review and adjust safety stock levels based on demand
variability and lead times avoid maintaining excessive safety stock that may not be necessary.