Ocean freight management can be a daunting task for any business that relies on shipping goods across the globe. However, with the right approach, shippers can avoid the risks and challenges that come with shipping ocean freight. This blog will provide tips and insights on how to better manage ocean freight, highlighting the importance of visibility in sea freight.

Optimizing Ocean Freight Management through Visibility and Strategic Planning.

Ocean freight management can be a daunting task for any business that relies on shipping goods across the globe. However, with the right approach, shippers can avoid the risks and challenges that come with shipping ocean freight. This blog will provide tips and insights on how to better manage ocean freight, highlighting the importance of visibility in sea freight.<o:p></o:p>

Introduction

Ocean freight shipping involves the transportation of goods from one location to another via ocean carriers. Ocean freight carriers are responsible for transporting cargo across the sea, from port to port.<o:p></o:p>&nbsp;They use various types of vessels such as cargo ships, container ships, tankers, and bulk carriers. It is a complex process that involves several parties, including ocean freight forwarders, customs brokers, carriers, and ports.

How Ocean Freight Shipping Works

Shipping ocean freight&nbsp;carries a plethora of risks that can result in delays, loss, or damage to cargo. Some of the risks include poor weather conditions, piracy, theft, and accidents. These risks can cause delays in ocean transit time, leading to additional costs and a negative impact on a business's reputation.<o:p></o:p>

Risks in Ocean Freight

Effective ocean freight management is critical for businesses that rely on international ocean freight shipping. Below are some tips to help shippers manage ocean freight more efficiently:<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" type="1"><li class="MsoNormal" style="color:#0E101A;margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Choose the right ocean freight company<o:p></o:p></li></ol>Selecting the best ocean logistics partner is critical for effective ocean freight management. Ocean freight shippers should choose a reputable ocean freight carrier that can offer a range of services and has experience in shipping ocean freight. An ocean freight company with a proven track record can help to minimize the risk of delays, loss, or damage to cargo.<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="2" type="1"><li class="MsoNormal" style="color:#0E101A;margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Use an experienced ocean freight forwarder<o:p></o:p></li></ol>Ocean freight forwarders act as intermediaries between shippers and ocean carriers. They help shippers with shipping documentation, customs clearance, and cargo insurance. An experienced ocean freight forwarder can provide valuable insights on the best routes and carriers to use, ensuring that cargo arrives on time and in good condition.<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="3" type="1"><li class="MsoNormal" style="color:#0E101A;margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Monitor ocean freight shipments<o:p></o:p></li></ol>Real-time freight visibility is critical for managing ocean freight effectively. Shippers should use a freight visibility platform that provides accurate information on the location and condition of the cargo. This information can help shippers to identify any issues that could cause delays and take corrective action to avoid them.<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="4" type="1"><li class="MsoNormal" style="color:#0E101A;margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Plan for ocean freight delays<o:p></o:p></li></ol>Delays in ocean transit time are common in shipping ocean freight. Shippers should plan for these delays by building a buffer in their supply chain. This buffer can help to ensure that any delays do not disrupt the supply chain and lead to additional costs.<o:p></o:p>

Tips for Better Ocean Freight Management

Visibility is critical for effective ocean freight management. Real-time freight visibility allows shippers to track their shipments and identify any issues that could cause delays or disruptions to the supply chain. Below are some insights into the meaning of visibility in sea freight and what is considered in a shipping visibility platform.<o:p></o:p>

Ocean Freight Visibility

Visibility in sea freight shipment refers to the ability of shippers to track their shipments from the time they are loaded onto an ocean freight carrier until they reach their final destination. This visibility includes information on the location, condition, and status of the cargo.<o:p></o:p>&nbsp;In the past, shippers had very limited visibility into the current status of their sea freight shipments. They would simply hand over their cargo to an ocean freight carrier and hope that it arrived at its destination on time and in good condition. However, with the advancement of technology, shippers now have access to real-time visibility into their shipments.<o:p></o:p>&nbsp;This increased visibility has a significant impact on the supply chain, as it allows shippers to track their shipments, predict any delays or disruptions, and take corrective action before the situation escalates.<o:p></o:p>&nbsp;For example, if a shipment is delayed due to bad weather or port congestion, shippers can use the visibility platform to reroute the cargo to an alternative port or adjust the delivery schedule to minimize the impact on the supply chain.<o:p></o:p>&nbsp;The ability to track shipments in real time also allows shippers to communicate more effectively with their customers. With the use of freight visibility software, shippers can provide their customers with accurate information on the status of their orders, including estimated delivery times and any potential delays. This transparency helps to build trust and strengthen relationships between shippers and their customers.<o:p></o:p>

The Meaning of Visibility in Sea Freight

A shipping visibility platform is designed to provide shippers with real-time visibility into their sea freight shipment. These platforms typically collect and analyze data from various sources, including the ocean freight carrier, port authorities, and customs agencies.<o:p></o:p>&nbsp;Some of the key features of a shipping visibility platform include:<o:p></o:p><ol style="list-style-type:decimal;margin-top:0cm;" type="1"><li class="MsoNormal" style="margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Location tracking: The platform provides real-time updates on the location of the cargo, including the vessel's current position and the estimated time of arrival at each port.<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Condition monitoring: The platform can track the condition of the cargo, including temperature, humidity, and vibration levels. This information is critical for shippers of perishable goods or sensitive equipment.<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Event monitoring: The platform can alert shippers to any events that may impact the shipment, such as weather-related delays, port congestion, or customs clearance issues.<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;">Analytics and reporting: The platform can analyze the data collected and provide shippers with insights into their supply chain, such as transit times, carrier performance, and potential cost savings.<o:p></o:p></li></ol>

What is considered a shipping visibility platform?

How can we improve sea freight?<o:p></o:p>Effective freight management involves selecting the right ocean freight company&nbsp;and using an experienced ocean freight forwarder. Real-time freight visibility is also critical for managing ocean freight effectively.<o:p></o:p>&nbsp;What is freight visibility?<o:p></o:p>Freight visibility refers to the ability of shippers to track their shipments and monitor their condition and status in real time. Freight visibility platforms provide shippers with the ability to access this information, which can help them to identify potential issues and take corrective action to ensure that their cargo arrives on time and in good condition.<o:p></o:p>&nbsp;Why is freight visibility important?<o:p></o:p>Freight visibility is essential for effective ocean freight management. It allows shippers to identify potential issues and take corrective action to avoid delays or disruptions to the supply chain. With this information, shippers can make informed decisions about their shipping strategy, including route optimization, carrier selection, and proper supply chain planning.<o:p></o:p>

FAQs

How To Better Manage Ocean Freight?

Weekly market updates for ocean rates and trends in the US Market.

August 2, 2023.png

From Editor's Desk

Freight Market Update - 2 August 2023

In today's globalized economy, supply chains are crucial for businesses to ensure the timely and efficient delivery of goods and services. With the rise of e-commerce and the increasing demand for faster delivery times, supply chains have become more complex.

Competitive Advantage in the Supply Chain.avif

In today's globalized economy, supply chains are crucial for businesses to ensure the timely and efficient delivery of goods and services. With the rise of e-commerce and the increasing demand for faster delivery times, supply chains have become more complex.<o:p></o:p>&nbsp;They require careful management to meet customer expectations and keep thriving in an evolving world. Effective supply chain management can help businesses reduce costs, increase efficiency, and improve the quality of their products and services.<o:p></o:p>&nbsp;Furthermore, with the ongoing disruptions caused by the COVID-19 pandemic and other unexpected events, a well-managed supply chain can provide the necessary flexibility and resilience to withstand these challenges and continue operating successfully.<o:p></o:p>&nbsp;In this blog, we will explore what makes a successful supply chain, how the supply chain can turn into a competitive advantage and three supply chain strategies.<o:p></o:p>

A supply chain is a series of interconnected entities involved in the production and delivery of goods and services to the end consumer. This system can include suppliers of raw materials, manufacturers, distributors, logistics providers, and retailers.<o:p></o:p>&nbsp;Effective supply chain management involves coordinating and optimizing these entities to ensure a smooth and efficient operation. This includes activities such as:<o:p></o:p>&nbsp;<ul><li class="MsoNormal" style="margin-bottom:0cm;margin-right:0cm;margin-top:1.0pt;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">Sourcing the right materials at the right price<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-right:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">Ensuring efficient production processes<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-right:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">Managing inventory levels<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-right:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">Coordinating transportation and logistics<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:0cm;margin-right:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">Delivering the products or services to the end consumer<o:p></o:p></li><li class="MsoNormal" style="margin-bottom:1.0pt;margin-right:0cm;margin-top:0cm;mso-list:l0 level1 lfo1;text-indent:-18.0pt;">And much more<o:p></o:p></li></ul>&nbsp;In today's competitive business environment, supply chain management can be the difference between success and failure. A small break in the supply chain could lead to a domino effect resulting in all other steps of the process breaking down. This is what makes supply chain management so crucial and it requires a careful eye for detail.<o:p></o:p>

How Does it Work?

A successful supply chain is efficient, effective, and adaptable to changes in the market. The following are some key factors that contribute to a successful supply chain:<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Visibility: The ability to see what is happening throughout the supply chain, from the manufacturer to the end consumer, is crucial. This includes real-time data on inventory levels, production schedules, shipping times, and delivery tracking.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="2" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Collaboration: Effective communication and collaboration among all parties in the supply chain is essential. This includes suppliers, manufacturers, distributors, retailers, and end consumers.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="3" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Automation: The use of technology to automate processes, such as ordering, tracking, and inventory management, can improve efficiency and reduce costs.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="4" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Flexibility: The ability to adapt to changes in demand or supply chain disruptions is critical. This includes having alternative suppliers or transportation options, as well as the ability to adjust production schedules.<o:p></o:p></li></ol>

What Makes a Successful Supply Chain?

A well-managed supply chain can be a source of competitive advantage for a modern company. Here are some ways that this can be achieved:<o:p></o:p>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Cost Reduction: An efficient supply chain can reduce costs associated with inventory, transportation, and production. This can lead to lower prices for customers and increased profits for the company.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="2" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Improved Quality: Effective supply chain management can lead to improved quality control, reducing defects and increasing customer satisfaction.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="3" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Faster Delivery: A well-managed supply chain can improve delivery times, providing a competitive advantage over competitors who have longer lead times.<o:p></o:p></li></ol>&nbsp;<ol style="list-style-type:decimal;margin-top:0cm;" start="4" type="1"><li class="MsoNormal" style="mso-list:l0 level1 lfo1;">Innovation: A supply chain that is responsive to customer needs can facilitate innovation in product design and delivery. This can lead to new products and services that differentiate the company from its competitors.<o:p></o:p></li></ol>

How Can the Supply Chain Turn Into a Competitive Advantage?

There are various supply chain strategies that companies can employ to achieve a competitive advantage. Here are three examples:<o:p></o:p>&nbsp;Lean Supply Chain<o:p></o:p>This strategy focuses on reducing waste and increasing efficiency by streamlining processes and minimizing inventory levels. This can lead to lower costs and faster delivery times.<o:p></o:p>&nbsp;For example, Toyota is a company that is known for implementing lean supply chain practices to improve efficiency and reduce waste.<o:p></o:p>&nbsp;Agile Supply Chain<o:p></o:p>An agile supply chain is flexible and adaptable to changes in the market. This includes having multiple suppliers and transportation options, as well as the ability to adjust production schedules in response to changes in demand.<o:p></o:p>&nbsp;For example, Zara is a company that has implemented an agile supply chain to be able to respond quickly to changing fashion trends. They can change their strategies and products to suit changing consumer demands.&nbsp;Responsive Supply Chain<o:p></o:p>A responsive supply chain is customer-centric and focused on meeting customer needs. This includes having real-time data on inventory levels and delivery tracking, as well as the ability to customize products and services to meet specific customer requirements.<o:p></o:p>&nbsp;For example, Amazon is a company that has implemented a responsive supply chain to provide fast and reliable delivery. They can deliver a wide range of products to their customers located in any part of the globe.<o:p></o:p><o:p></o:p>

Three Supply Chain Strategies

In conclusion, effective supply chain management can provide a competitive advantage for modern businesses. According to a recent survey, companies with highly effective supply chains are 73% more profitable compared to their peers with less effective supply chains.<o:p></o:p>&nbsp;Moreover, supply chain disruptions caused by the COVID-19 pandemic have highlighted the importance of having a flexible and adaptable supply chain. Therefore, companies that invest in their supply chains and implement strategies to optimize them can reap several benefits, ultimately leading to long-term success in the marketplace.<o:p></o:p>

Parting Thoughts

Q: How will effective supply chain management affect competitive advantage?<o:p></o:p>A: By having a well-managed supply chain, a company can provide better customer service, faster delivery times, and lower prices, all of which can attract and retain customers and differentiate the company from its competitors.<o:p></o:p>&nbsp;Q: Why is supply chain management key to success?<o:p></o:p>A: By optimizing the supply chain, a company can ensure that it is producing and delivering goods and services in the most cost-effective and timely manner possible. This can lead to increased profits, better customer service, and a competitive advantage over other companies in the market.<o:p></o:p>&nbsp;Q: What are three supply chain strategies?<o:p></o:p>A: Three supply chain strategies are lean supply chain, agile supply chain, and responsive supply chain. Companies can choose to implement one or a combination of these strategies depending on their specific needs and goals.<o:p></o:p>

How to Gain a Competitive Advantage in the Supply Chain?

July 26, 2023.png

Greetings!Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.Moreover, we are open to adjusting the style of our updates to better align with your preferences. If there are any ports or regions that we haven't addressed yet but you're interested in, please let us know.We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

From the Editor’s Desk

<ul><li>U.S. freight forwarders warned about potential strike action at UPS and Yellow Freight.</li><li>Past UPS strike in 1997 caused supply chain chaos, and the current strike could have more severe consequences due to added air cargo security requirements.</li><li>Carriers on the Asia-North Europe route use blank sailings and inducement-only port calls to manage soft trade demand.</li><li>Freight rates from China to North Europe are under pressure due to oversupply, with a significant decline from last year.</li><li>ILWU Canada withdraws the July 22 strike notice.</li><li>Carriers achieved almost full success on the August 1st General Rate Increase (GRI).</li></ul>Read on for more in-depth updates.

Key takeaways for the US

Asia → North AmericaUS/CATranspacific Trends and Market Updates<ul><li>U.S. freight forwarders warned about potential strike action at UPS and Yellow Freight.</li><li>Airforwarders Association (AfA) executive director describes it as a "perfect storm" with potential disruptions to goods flow.</li><li>Forwarders are advised to validate with the Known Shipper Program, contact shippers using UPS or Yellow Freight, and anticipate delays.</li><li>Contract negotiations between UPS and unions have broken down, and the contract is set to expire on July 31.</li><li>Workers authorize strike action and will not work beyond the contract's expiration.</li><li>Yellow Freight (YRC Worldwide) negotiating with unions amid restructuring efforts after receiving a reprieve from lenders.</li><li>The company is trying to refinance debts, including a large federal government emergency COVID loan.</li><li>Freight rates from China to North Europe are under pressure due to oversupply, with a significant decline from last year.</li><li>Carriers do not expect a traditional peak season, leading to downward revisions in full-year earnings predictions.The U.S. trucking industry saw growth in revenue and tonnage in 2022, despite a freight recession expected to continue into 2024.</li><li>Trucks moved 11.46 billion tons of freight, generating $940.8 billion in revenue.</li><li>Trucking employed 8.4 million people, including 3.54 million professional truck drivers, with an increasing number of female drivers.</li><li>Most trucking fleets are small businesses operating ten or fewer trucks.</li><li>Trucks accounted for a significant portion of U.S. trade with Canada and Mexico, transporting goods worth $947.92 billion.</li><li>Carriers achieved almost full success on the August 1st General Rate Increase (GRI).</li><li>Spot rates have been rising for three consecutive weeks, reaching USWC $1,900 to $2,000/40’HC, USEC $3,000 to $3,100/40’HC, and GULF $3,200 to $3,400/40’HC.</li><li>To manage capacity, carriers reduced Asia-USWC capacity by 15% compared to June and Asia-USEC capacity by 10%.</li><li>Blank sailings will continue in August, with OA increasing blank sailings to USEC/GULF, and THEA increasing blank sailings to PNW and USEC.</li><li>Pre-booking 4 weeks with carriers is necessary to secure space, and for some low-price services, pre-booking up to 6 weeks is recommended for safety.</li><li>Despite some recent increases on specific lanes, overall shipping rates remain significantly lower compared to a year ago.</li><li>Carriers are using large blank sailing programs to balance supply and demand and prevent further rate erosion.</li><li>The trend of blank sailings is expected to intensify with the arrival of 2.4 million TEU of additional capacity by Q1 2024.</li></ul>&nbsp;ConclusionsRates -&nbsp;The rates will remain soft on most origin-destination combinations.Space -&nbsp;Space open, no issues with equipment.Recommendations -&nbsp;We recommend blank sailings to continue. Book at least two weeks before the date your vessel gets ready to depart.

Ocean Freight Market Updates

<ul><li>ILWU Canada withdraws the July 22 strike notice.The union had initially rejected a tentative wage deal recommended by federal mediators and resumed their strike.</li><li>The Canada Industrial Relations Board declared the strike unlawful and ordered the union to cease the work stoppage.</li><li>A new strike notice was served for July 22 but was revoked a few hours later.</li><li>The British Columbia Maritime Employers Association states that the situation remains fluid and unpredictable.</li></ul>&nbsp;ConclusionsRates -&nbsp;The rates will remain soft on most origin-destination combinations.Space for capacity -&nbsp;No capacity issues or issues with space.Space for equipment -&nbsp;No issues with equipment.

Turkey → North America

North America → Turkey

Terminal Updates

Port Status

In light of the latest updates and trends, it is evident that the market is currently in the course of demonstrating robust performance and is equipped with ample capacity and resources.Individuals and businesses involved in import/export activities must stay well-informed about market dynamics and strategies to make informed decisions. To ensure a smooth and hassle-free experience with your import/export operations, it is recommended to seek guidance from industry experts.Conduct thorough research on ports that offer available space and suitable equipment despite the ongoing conditions. By doing so, you can minimize complications, facilitate shipments, and maximize efficiency.Taking proactive measures and staying proactive in your approach will help you navigate the market effectively. We greatly appreciate your continued readership and encourage you to subscribe to our weekly market updates to stay abreast of the latest developments and insights.&nbsp;

Final Thoughts

Freight Market Update - 26 July 2023

In the realm of inventory management and retail, SKU analysis plays a crucial role in understanding and optimizing product performance. It is often described as the backbone of successful product performance and keeping track of things.

photo-1542744173-05336fcc7ad4.avif

In the realm of inventory management and retail, SKU analysis plays a crucial role in understanding and optimizing product performance. It is often described as the backbone of successful product performance and keeping track of things.<o:p></o:p>&nbsp;SKU, short for Stock Keeping Unit, refers to a unique identifier assigned to each distinct product or item within a company's inventory. SKU analysis involves the examination and evaluation of SKU-level data to gain insights into sales.<o:p></o:p>&nbsp;It also contributes significantly to profitability, demand patterns, and overall inventory performance. This blog post aims to shed light on the significance of SKU analysis, how to conduct it effectively, and the benefits it offers to businesses.<o:p></o:p>

SKU analysis is the process of examining individual product SKUs to gain a deeper understanding of their performance, profitability, and contribution to overall business objectives.<o:p></o:p>&nbsp;It involves the collection and analysis of various metrics associated with SKUs, such as sales volume, revenue, margin, stock levels, and customer demand patterns. By dissecting these data points, businesses can identify top-performing SKUs and monetize them further.<o:p></o:p>&nbsp;They can also assess slow-moving or obsolete products, and make informed decisions regarding pricing, promotions, and inventory management strategies.<o:p></o:p>

What is SKU Analysis?

Consider a fictional fashion brand that conducts SKU analysis to evaluate the performance of its product inventory. The team collects various metrics for each SKU, such as sales volume, revenue, margin, stock levels, and customer demand patterns.<o:p></o:p>&nbsp;During the SKU analysis process, the brand identifies that SKU A, a trendy summer dress, has consistently high sales volume, generating substantial revenue and profit margins. As a result, the fashion brand decides to allocate additional marketing resources to promote SKU A and ensure sufficient stock levels to meet the high demand.<o:p></o:p>&nbsp;On the other hand, the team discovers that SKU B, a winter coat, has been experiencing low sales volume and limited customer demand during the summer season. This insight alerts them to the slow-moving nature of SKU B.<o:p></o:p>&nbsp;Based on this analysis, the team can make informed decisions such as running targeted promotions, offering discounts, or planning inventory clearance to improve the sales performance of SKU B and prevent excess stock.<o:p></o:p>&nbsp;Furthermore, SKU analysis enables the team to assess the profitability of each SKU. For instance, they analyze SKU C, a basic t-shirt, and find that despite moderate sales volume, its low production and marketing costs result in a high-profit margin.<o:p></o:p>&nbsp;Armed with this information, the brand can strategically price SKU C to maximize profitability. They can achieve better sales while remaining competitive in the market. It is a win-win for the brand due to a well-executed SKU analysis!<o:p></o:p>

A Comprehensive Example

Analyzing SKUs provides several key benefits to businesses:<o:p></o:p>&nbsp;Identifying top-performing products: SKU analysis helps identify SKUs that generate the highest sales, revenue, and profitability. By understanding which products are performing well, businesses can focus their resources on maximizing the success of these SKUs and allocate marketing and promotional efforts accordingly.<o:p></o:p>&nbsp;Identifying slow-moving or obsolete products: Through SKU analysis, businesses can identify SKUs that have low sales velocity or are no longer in demand. This information allows companies to take corrective actions, such as implementing targeted marketing campaigns, adjusting pricing strategies, or discontinuing unprofitable products.<o:p></o:p>&nbsp;Optimizing inventory management: SKU analysis helps businesses optimize their inventory levels by identifying products with high demand and ensuring sufficient stock is available. By analyzing SKU data, companies can avoid overstocking or understocking situations, leading to improved operational efficiency and reduced carrying costs.<o:p></o:p>&nbsp;Pricing and promotion strategies: SKU analysis enables businesses to evaluate the impact of pricing and promotional strategies on product performance. By assessing the relationship between price changes, promotional activities, and SKU-level data, companies can refine their pricing strategies to maximize profitability and customer demand.<o:p></o:p>

Why Should You Analyze Your SKUs?

Performing SKU analysis involves several steps. By following this guide, your team can conduct a successful analysis and derive useful results:<o:p></o:p>&nbsp;Gather SKU data: Collect relevant data for each SKU, including sales volume, revenue, margin, inventory levels, customer feedback, and any other pertinent information. This data can be obtained from point-of-sale systems, inventory management software, or customer relationship management systems.<o:p></o:p>&nbsp;Segment SKUs: Categorize SKUs based on product attributes, such as product category, brand, or price range. This segmentation allows for more targeted analysis and comparisons.<o:p></o:p>&nbsp;Analyze performance metrics: Evaluate performance metrics for each SKU, such as sales volume, revenue, and margin. Identify top-performing SKUs and those that require attention or improvement.<o:p></o:p>&nbsp;Assess demand patterns: Analyze historical sales data to identify demand patterns for each SKU. This analysis can reveal seasonal trends, demand fluctuations, and other factors influencing sales.<o:p></o:p>&nbsp;Evaluate profitability: Calculate the profitability of each SKU by considering both direct costs (e.g., production, packaging) and indirect costs (e.g., marketing, warehousing). This analysis helps prioritize SKUs based on their contribution to the bottom line.<o:p></o:p>&nbsp;Make data-driven decisions: Utilize the insights gained from SKU analysis to make informed decisions regarding pricing strategies, inventory management, product assortment, and marketing efforts.<o:p></o:p>

How to Perform SKU Analysis?

In conclusion, SKU analysis provides businesses with valuable insights into the profitability and customer demand patterns of individual product SKUs. They are timely inputs for businesses to make key decisions and optimize their performance.<o:p></o:p>&nbsp;If you are planning to use SKU analysis to empower your team to optimize their product portfolio, now is the best time! It can help you assess your stock, maximize profitability, and stay competitive in the market.<o:p></o:p>&nbsp;It is a vital practice for businesses seeking to scale and meet the demands of present markets. It can enhance their operational efficiency, customer satisfaction, and overall success.<o:p></o:p>

Summing Up

Q: When should SKU analysis be done?<o:p></o:p>A: SKU analysis should be conducted regularly, ideally on a quarterly or monthly basis for your business. This will help your team stay updated on SKU performance and make timely adjustments.<o:p></o:p>&nbsp;Q: How does Beeontrade help with SKU analysis?<o:p></o:p>A: Beeontrade streamlines SKU analysis with automated data collection, customizable dashboards, and advanced analytics. This is a good process if your business is planning on simplifying the process of gaining insights and making informed decisions.<o:p></o:p>&nbsp;Q: What are the benefits of SKU analysis to businesses?<o:p></o:p>A: SKU analysis offers benefits such as optimized inventory management, increased profitability through identifying top-performing SKUs, informed pricing and promotion strategies, improved decision-making based on data, and a competitive advantage in the market.<o:p></o:p>

What is SKU Analysis? How to Do It?

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