Inventory

Netstock's 2024 Inventory Management Report Guides SMBs

Netstock's 2024 Inventory Management Report Guides SMBs

Sedat Onat
Netstock's 2024 Inventory Management Report Guides SMBs

Netstock has published its new "Inventory Management 2024 Benchmark Report" to help small and medium-sized businesses (SMBs) optimize their inventory performance. The report reveals that excess stock comprises 38% of SMB inventories and that significant gaps exist in demand planning. These findings aim to help businesses measure their performance against industry standards, identify areas for improvement, and set realistic targets.


The report highlights five key trends that underscore the need for SMBs to develop more robust supply and demand planning software strategies to adapt to continuous changes in global markets:

  1. Addressing Excess Stock: Although SMBs have reduced overall inventory levels, many are struggling to clear slow-moving stock. Barry Kukkuk, Netstock's CTO and co-founder, notes that many SMBs suffered from over-ordering during the COVID-19 period, and the effects of these experiences continue to persist.

  2. Battling Long Lead Times and Lead Time Variability: While lead times declined in 2023, global uncertainty has impacted supply chains again. 58% of SMBs view long lead times as a significant challenge, while 72% cite lead time variability as a major difficulty.

  3. Trend Toward Nearshoring Suppliers: U.S. SMBs are shifting away from overseas suppliers, moving production to closer regions. According to the report, only 25% of U.S. respondents prefer overseas suppliers compared to domestic suppliers.

  4. Using Financing to Manage Excess Stock: As excess stock increases, 54% of companies with excess inventory representing more than 20% of their total inventory are turning to inventory financing. This indicates that access to financing may influence willingness to carry excess stock.

  5. Opportunities in Artificial Intelligence Adoption: Although artificial intelligence (AI) is a popular trend among businesses, only 23% of SMBs have invested in this technology. Data integrity and security risks, along with inconsistent or incorrect outputs, emerge as the primary concerns.

Netstock provides state-of-the-art supply and demand planning software to help SMBs overcome these challenges. Developed based on data from more than 2,400 SMBs, the report contains in-depth analyses of global trends, challenges, and optimization approaches in inventory management.


Key Takeaways:

  • 38% of SMB inventories consist of excess stock.

  • Lead time variability affects 72% of SMBs.

  • Only 25% of U.S. SMBs prefer overseas suppliers.

  • 54% of companies with high excess stock use inventory financing.

  • Only 23% of SMBs have invested in artificial intelligence.


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News Link: https://www.supplychainbrain.com/articles/40514-global-inventory-trends-and-challenges-shaping-smbs


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