Inventory Management

FMCG warehouses experience stock-outs on fast-moving SKUs and overstock on slow movers because replenishment is based on fixed reorder points rather than actual demand signals.

FMCG products have short shelf lives. Batches sitting in the warehouse approaching expiry represent significant write-off risk if not identified and actioned early enough.

Without system-level FEFO enforcement, warehouse staff pick available stock from the most accessible shelf position rather than the earliest-expiring batch, causing older batches to expire in stock.

FMCG companies operate production warehouses, regional distribution centres, C&F agent locations, and branch warehouses. Getting a consolidated, accurate view of stock across all these points requires manual data consolidation.

Near-expiry stock at a slow-moving location can be sold at another location with higher throughput, but identifying and acting on this opportunity before expiry requires proactive monitoring that rarely happens.

Returns from distributors and damaged goods identified at the warehouse are processed informally — credit notes are delayed, root causes are not tracked, and the financial impact is unclear.

Packaging materials — primary packs, cartons, labels, shrink wrap — are consumed on the production line but often tracked separately from raw materials, creating gaps in total inventory cost visibility.

Slow-moving SKUs accumulate in warehouses and eventually reach expiry or become obsolete, tying up working capital and occupying storage space without generating revenue.

Annual physical stock counts cause operational disruption. Without a cycle count programme, inventory accuracy degrades throughout the year, leading to stock discrepancies discovered only at year-end.