Inventory management involves
“the overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale.”
It is important for an organisation to make sure that it has enough inventory on hand to satisfy an unexpected increase in demand and to supply a steady flow of finished products to customers. However, too much inventory represents cash tied up that could be used in other areas of the business.
When one walks into a store to buy a product in a pretty bottle, a glossy box, a cylindrical container or even some oddly shaped package, one sees only the final piece of an intricate puzzle. For example, luxury goods (like watches and perfumes) and foods (like cereal and yogurt) come in a variety of boxes, bottles and containers. Stores expect all brands to adhere to certain packaging standards. However, how is it that the shelves in main stores are so full? That’s where a planogram comes in. A planogram is a map where each and every item is placed on a shelf. Companies spend lots of time trying to fill every shelf while still keeping your favourite products at eye level. Nowadays, the best companies start their packaging strategies from the moment the product is designed.
Based on a chain of stores, a grocery chain or a pharmacy chain of your choice, compare different sections of the stores in the same chain in different locations. Go to product Xs section in Store A. Study it, then go to the same section of Store B. Share your observations and justifications for any patterns on the Discussion Board.