Item Stratification, or stock stratification, is classifying items based on individual characteristics. The distributor categorizes inventory to ensure the correct items are stocked in the right quantities and locations.
Item stratification helps companies make the right decisions about their storage. By ensuring they have the correct item in the right quantity and location, they prevent stockouts and overstocking.
Key Takeaways
Item stratification, also known as stock stratification, is the process of classifying items based on individual characteristics to ensure the correct items are stocked in the right quantities and locations, helping avoid stockouts and overstocking.
Item stratification helps companies reduce storage costs by minimizing excess inventory and associated handling costs.
By categorizing items based on how quickly they can be sold, companies can prioritize keeping the most in-demand items in stock, thereby improving inventory turnover.
Item stratification facilitates easier and more accurate data-based inventory decisions, ensuring better stock management and enhanced customer experience.
The TrueCommerce VMI solution supports item stratification by allowing the assignment of specific codes to items optimizing their placement within supplier warehouses for improved efficiency and load times.