How to Deal with Inventory Management and Product Development

Ordinarily, balancing supply and demand as far as stocks are concerned will pose a big problem if the person assigned does not know how to make formidable forecasts. While the consumer market reaction toward product acceptance of a certain commodity or good will always be erratic, providing and making initial assumption towards potential market demand with the support of enumerated advertising and promotional support for the said products will have to shell out expected product movement for a certain period.

Such has been a problem with the bottled beverage industry. Owing to the congested market in the Philippines today, strategic management and forecasts need to be done thoroughly to assure that the credibility of wholesale distributor and suppliers can be able to meet the demand by the consumer market towards newly introduced products in the market. It is not purely a guessing game. It is about putting together all the gathered facts and projected assumptions to come up with an efficient forecast of how much to supply a commodity or good in line with the probable demand for the product. In most instances, there will discrepancies in the demand.

One factor is the product acceptance since ideally, produce awareness and education are lacking. This is where the role of advertising and promotions would come in. Consumers will not patronize or even try out a product without the proper information, such as nutritional benefits, price range, product category and other necessary product features that molded into its final product. It is thus through advertising and promotions that such information would be segregated and spread over the target market class area. The usual modes known to be able to spread the said information are through the usual media of print, radio and television.