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Out of stock , refers to no products in one of our sales channels, who responsible for this shortage(Manager,Sales SV, SR, Channel, Vendor POS)?

In case we found one of our sales channels Either ours(Show rooms) Or what we selling through them (POS) , Who bear this responsibilities?, we know there is a daily stock report , but sometimes it is fake one , or in case of POS and when we have more than2k POS how we can control this issue and make at least weekly checking on stock level and availability . since the shortage affect on sales, profit, and credibility.

And what in your opinion , the acceptable level of stock in each channel.?

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Question added by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company
Date Posted: 2016/02/21
Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

follow and wait expert answer for more details

 

shady Nagy
by shady Nagy , Senior Electrical Sales Engineer , Ever Green Energy ( 3- brothers group)

i think all of this was responsible for this mistake , but mainly manager as he must follow all the operation 

Ahmad Alhusainy
by Ahmad Alhusainy , consulting , Self-employed

There is a software called Oracles, nowadays, a logistic specialist is incharged of checking the supply and send the stock to the store/showroom, however it doesn't necessarily means the stock are available in the warehouse, there are business they have thousands of products, and there are business has certain type of product, and you have the delivery, if the delivery staff didn't supply it, the chain is long and shortage could be any reason, specially if they didn't use Oracle software, the sales didn't report it, or delivery didn't get it, the possible reason is unknown however could be any reason, better to track it, and find the responsible person. 

Mohammed  Ashraf
by Mohammed Ashraf , Director of International Business , Saqr Al-Khayala Group

Out of stock would come in two situation and as follows:

1- Lack product availability from the manufacturing Company/ Unit.

In this situation, we can't accuse anyone because of responsibility. It might be happened  due to the shortage of row materials, refinery breakdown problems, factory breakdown problems  and so on.

2-  Ignorance 

Ignorance might be happened and it would causes out of stock of product at warehouse or Sales outlets.

Here, first responsible person is Warehouse Manager, he is one responsible for keeping enough stock of any product which the company is working on. by reviewing the previous census of sales, he has to arrange enough stock of the product/materials as per the niche market required.

According to me it is Warehouse Manager, may be under him there will be many other staff responsible and that also his duty to arrange in a professional way. 

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Stock control, otherwise known as inventory control, is used to show how much stock you have at any one time, and how you keep track of it.

It applies to every item you use to produce a product or service, from raw materials to finished goods. It covers stock at every stage of the production process, from purchase and delivery to using and re-ordering the stock.

Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain.

Vikas Bachhuka
by Vikas Bachhuka , Sales Manager - Tire, Lubs & Batteries , ALI ALGHANIM & SONS AUTOMOTIVE CO.

There could be many reason for out of stock situation.

1) Low ordering

2) Wrong forecast

3) High Sale

4) Non proper replenishment of stock on time.

5) Risk taking on stock

6) Slow moving suddenly in demand

 

Anyone from the process can be a reason of the above. The most important thing which needs to be done is to find solution to problem and taking corrective measures for future.

 

Abdelghany Abdelsalam
by Abdelghany Abdelsalam , Plant Manager , Doctor Nutrition

Thank you for the invitation

I think this case is a nonconformity need root cause analysis to define the key point of this problem and remedy it with follow up to assure non-repetition.

Rami Abbas
by Rami Abbas , Sales Manager , Al Houda Contracting and Real Estate Development

In my opinion and experience it's mainly the responsibility of the logistics department and ofcourse the Management. In some cases it's the fault of bad reporting from departments but a good management knows when that happens so it's back again to management.

It would seldom be a person's or supplier's fault.  People may make mistakes, but they don't often intentionally not order something or not check inventory.  Similarly, vendors want to sell their product.  They don't want to withhold it.  This sounds like a process and perhaps a disciple problem.  Do you have a robust pull system in place?  It doesn't have to be electronic?  Painted lines in the storage/inventory area can signify min and max inventories.  A Kanban card can be an actual piece of paper acting as a reorder form when you get to a certain level.  Have you analysed sales volume and volatility to determine what the optimum inventories should be?  Finally, if your sales volumes and economics will support it, most of this can be automated.  There is no reason for your inventory report to be wrong if you tie it to your order process to set volumes and adjust it when stock is pulled from inventory and adjusted again at point of sale.  These can me triggered from everything from barcode readers to electronic ID tags.

Mohamed Eissa
by Mohamed Eissa , Marketing & Social media Manager , Arab Association for Women and Children

Thanks for the invite

I think that everyone is responsible because in this case it seems to me that the reports are not working properly and doesn't give the full image to the decision maker to fill the shortage in any of the products that are about to be completed, but the manager remains responsible for the whole thing

Greetings & respect 

Zaferullah Sharief, PMP®
by Zaferullah Sharief, PMP® , Project Manager , Huawei Technologies

Out of Stock is normally its a consequences of Improper inventory planning, lack of coordination , lack of timely reporting and escalation methods within the chain of management and concerned staff.  To avoid such situations a complete inventory Plan need to be shared in advance to all stakeholders so that the inventory can be ordered and maintained well.  Proper inventory checks and applying best methods of inventory tracking systems and timely escalations by concerned management and staff will ensure the smooth running of business entity.

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