Introduction:
Inventory management is a difficult task in any business, but for entrepreneurs it can be especially tricky. Every entrepreneur faces the challenge of balancing quantity with quality when it comes to ordering inventory from suppliers or manufacturing their own products. This is because too much inventory means that they could lose money and time on unsold goods, while not enough inventory means they could miss out on sales opportunities and risk customer dissatisfaction. One way to simplify this problem is to keep an eye on your case pack size: how many items you order per case at one time. The smaller the number of cases ordered, the less likely your company will have excess or lack of inventory. Keep reading for more information about using consistent case packs as a solution to managing inventory!
What is Case Pack Quantity?
Case pack quantity is the number of units that are packaged in a master carton or case. For example, if you buy milk at the grocery store, it will come in packs of two or four. If you purchase cereal from wholesalers, it comes in boxes containing 24 to 48 pieces depending on what brand and flavor you choose. This number can range from a single unit case all the way up to thousands of pieces. Case pack quantity is important because it affects both receiving and inventory management.
Case Pack Quantity And Its Role In Inventory Management
Case pack quantity is important because it affects both receiving and inventory management. By keeping case pack size consistent, you can reduce the time spent on these tasks. For example:
Receiving is more efficient with a consistent case pack. When a shipment of cases arrives, having an efficient case picking process makes unloading faster and more accurate than if they were in random box sizes (which can lead to case pieces being lost).
Inventory control can be aided by consistent case quantities within the same sku. Having case pack quantities that are consistent makes it easier for you and your employees to count inventory. It also allows you to plan the number of cases needed to store in order to keep a certain amount on hand at all times. This way, you can avoid having excess or lack of inventory.
How To Choose The Right Case Pack Quantity For Your Products
The case pack quantity you choose depends on the type of product. Generally speaking, products that are more unique or have a shorter lifespan will need smaller case packs while those with longer lifespans and less uniqueness should use larger case pack quantities. Here is how to make this determination:
Look at your product's life cycle. How long do you expect it to be in demand? If the case pack quantity will only last a few weeks or months, then smaller case packs are best because they mean less time spent unloading, receiving and counting inventory. However if the case pack is intended for longer than six months of continued sales, larger case packs are best.
Look at your product's uniqueness. The more unique the item, the smaller case pack you should purchase to avoid having excess inventory that could get stale or out of demand before being sold through. However, if it is a lower quality version of another popular product then consider using larger case packs so that customers can take advantage of bulk savings.
Consider the supplier's case pack quantity recommendations. Since case quantities are usually determined by product type and volume, suppliers will often have case packs that they recommend for their products to make inventory management easier on you as a buyer. If your supplier recommends multiple case packs then choose one in between or at either end of this range since case pack quantity is ultimately a case-by-case decision.
Finally consider the weight and size of your units. If you items are heavy or take up significant space you may need to adjust your case quantity to make sure your boxes and packaging are not over and weight limit or require more shelf space then your warehouse or retailers alot. It may also make sense to consider the value of case packed products as many retailers will order based on your minimum order quantity which is often the same as the master carton case pack for most skus. By keeping the price of the case your are selling to a business down by reducing the case pack quantities of high price items will result in more sales of items whose high cost limit a the demand of a store or retailer.
Now that you know how case packs work and why they're important to inventory management, it's time to create case packs for your products!
Case Pack Quantities And Retailer And Manufacturer Requirements
Consistent case pack quantities can be used in retailer and manufacturer contracts to specify case quantity minimums for products. This may seem like a minor detail but case packs are actually very important in many industries, especially when it comes to children's items which often have strict case requirements due to safety concerns. For example:
- manufacturers of infant clothing often have case pack minimums of 48 pieces for each style and size combination
- other manufacturers may require case packs in multiples of 12 or 24, depending on their own internal processes.
This means that a company wanting to sell infant clothing must hold the proper amount of inventory at any one time during contract negotiations with retailers while also being able to fulfill case pack quantity requirements. If they cannot fulfill case packs for all their products, then the retailer may choose another supplier or decide to purchase inventory on a consignment basis and only pay when an item is purchased by a customer.
This also applies to other industries as well such as those that produce toys which often have case pack minimums ranging from 12 to 48 pieces. This case quantity can be further divided into case pack quantities for each product as well such as 12 items per case, 24 items per case or even more depending on the item and its demand in the market.
By keeping track of your case packs you will also have a better idea of how much inventory is being produced overall at any given time. This is useful information to have at hand since case packs are used by many companies as a way of determining the total quantity of items produced for an order, which can be further broken down into case quantities with each item being counted as one case.
For example: If your supplier offers you three case pack sizes then they will likely require case packs in multiples of three for each item they sell. In this case, a company selling soap may have an order that requires 100 bars to be ordered from their supplier with the case pack size being 36 so you would need four master carton cases containing 12 units per case or roughly 33% more product than if your case pack was one case.
To help determine case pack quantities for your products it is a good idea to look at case packs used by other manufacturers in the same industry and use these as a guide when creating case packs for your own inventory. This way you will be able to create case-packs that not only meet retailer requirements but also ensure efficient production of items in case quantities.
It is important to note that your manufacturer may not be the only one dictating your case pack quantities. Retailers often have strict guidelines for bother boxes of products and individual units. Cases of items that are larger or heavier may have case packs in multiples of three, six, twelve and even as high as twenty-four.
For example: If you are selling case packs of six of your products to retailers then they may require case quantities of three or twelve of each item. This case pack quantity is used so that the retailer can easily move products from storage to retail shelves, especially if they have heavier items or case packs that are case-packed individually instead of in master cartons.
Many times your shipment of boxes from your manufacturer will have to fit a stringent set of weights and dimension from your retailers. This is because retailers sell to the end consumer and are often times limited by shelf space. This results in strict guidelines such as case pack limit or minimum order quantity to make sure they have enough stock for sale without have too much quantity of the same product sitting around in storage until space is available on a shelf. In many cases also have a case-to-case dimension requirement.
Conclusion:
When it comes to ordering inventory, entrepreneurs face the challenge of balancing quantity with quality. One way to simplify this problem is by keeping an eye on your case pack size--how many items you order per case at one time. The smaller the number of cases ordered, the less likely your company will have excess or lack of inventory; in turn, saving you money and time while also ensuring that customers are satisfied with their experience. If you're struggling with getting a handle on how much product should be stocked for every season or occasion, let us know! We'd love to help get you set up so that your business can thrive.
