Stock monitoring is the ongoing process of tracking inventory levels and performance metrics to efficiently manage a company’s own stock. It is also important to monitor competitors’ stock positioning.
- Physical counts and sales data provide internal stock visibility. Externally, competitors’ products and inventory can be observed online and in stores.
- Reorder points aim to avoid understock situations compared to internal targets, while competitor monitoring ensures levels stay aligned with market demands.
- By analyzing competitors’ stock movements, a company gains insights into category trends and demand patterns that may affect its own inventory needs.
- Monitoring competitors’ minimum, maximum and average stocking levels and lead times provides a benchmark for optimal inventory targets relative to customer service expectations.
- Competitor stockouts or surplus situations present opportunities to capture displaced sales through adjustments to a company’s own supply availability.
- Low stock alerts and replenishment schedules are informed by internal metrics but also consider how to quickly fulfill demand if competitors run low on similar items.
Effectively monitoring both internal stock and external competitors’ inventory positioning supports competitive advantages around availability and market responsiveness.