Stockouts often stem from inbound logistics failures
Stockouts are frequently caused by late inbound data, not demand or supplier issues. Infios highlights that manual processes and poor coordination create inaccurate stock levels.
Widespread stockouts are commonly the result of delayed or incomplete inbound logistics data, rather than fluctuations in customer demand or supplier failures. Companies that heavily prioritize efficient outbound logistics often overlook critical upstream processes.
According to Richard Stewart, Executive Vice President Americas at Infios, a significant portion of stockouts originates from internal coordination breakdowns, particularly in managing incoming goods. When supply chain operations rely on outdated tools like emails and spreadsheets, the information is often 24 to 48 hours behind real-time data.
These delays create substantial gaps in inventory management. Warehouses struggle to plan resources effectively, loading docks cannot prioritize incoming shipments, and stock allocations become unreliable. Such 'coordination failures' can mean that goods are physically present but cannot be accounted for or utilized within the system's knowledge.
Stewart suggests that modern supply chain management requires real-time integration and AI-driven orchestration. By investing in better visibility for inbound logistics, companies can prevent stockouts without needing to increase safety stock or incur higher holding costs. This approach ensures more accurate delivery promises to customers and improves overall supply chain efficiency.