Decoupling Inventory: How Can This Help Your Business?

Separating a product's manufacture from its distribution has multiple benefits. Learn how decoupling inventory can help your business.

By Ioannis Athanasiou
Head and shoulders photo of Michelle Meyer
Edited by Michelle Meyer

Updated July 21, 2023.

Decoupling inventory is a useful technique for continuing manufacturing instead of stopping production until you've received all the materials you need to produce your products.

Decoupling inventory is the process of separating a product's manufacture from its distribution. You keep a certain amount of inventory in each step of the manufacturing process aside in case any of the steps are delayed.

This technique is especially important for online shops that produce and market their own goods rather than buying and reselling bulk goods. If this applies to your online store, I'll show you ways in which decoupling inventory can help your business below.

Increases Flexibility During Production

By separating your product's manufacturing and distribution, you can boost your business's flexibility across production lines and supply networks. This means you'll be able to lessen the effects of unplanned disruptions like equipment breakdowns or supplier delays. Your production can continue while issues are being resolved, avoiding expensive downtime.

» Not sure how to track your inventory in Shopify? Follow these easy steps

Maintains Customer Satisfaction

Decoupling inventories has the additional advantage of preserving client satisfaction because you can complete urgent orders while waiting for more materials to arrive. This includes orders that have strict deadlines, high volumes or are already paid for. This technique also helps reduce the likelihood of revenue loss.

» Easily notify customers when products are back in stock

Decreases Pressure on Managers and Staff

Decoupling inventory also decreases the pressure on managers and staff. Your production processes can continue even if there are delays or disruptions in the supply chain, reducing the pressure on decision-makers and employees.

Improve Your Business by Decoupling Inventory

Decoupling inventory is a crucial procedure if you manufacture your products because it helps to strengthen your finances and safeguard against unforeseen disruptions. It improves production flexibility, upholds client happiness, and relieves stress on managers and employees.

If you want to use this technique successfully, you'll need a better grasp of your inventory management. Make a start by effectively managing your out-of-stock inventory by using an app like Out-of-Stock Police by Egnition to get the best possible results.

Out-of-Stock Police

4.8/5(155 reviews)

» Interested in learning more about this handy app? Check out the following Out-of-Stock Police review

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