Many CPG brands confuse inventory planning with inventory management, but they’re different. Mixing them up can lead to stock issues and hurt profits. Seasonal peaks, like holidays, add more pressure. It’s hard to know how much stock to order. Suppliers get busy, some items sell fast, others don’t. Order too little, and you miss sales. Order too much, and you waste money.
Seasonal inventory is tough for CPG brands. Demand shifts fast, supply chains are complex even Coca-Cola and Nestlé struggle. As the industry goes digital, seasonal prep needs smart, proactive planning. That’s where Expertise Accelerated can help. In this blog, we’ll share tips to handle seasonal inventory and avoid common mistakes.
According to Avery Dennison, Warehouse costs are rising fast, and space is harder to find. Despite efforts, around 8% of extra inventory worth $163 billion yearly still goes to waste.
Let’s get started!
What Is Inventory Planning?
Inventory planning is all about looking ahead. It helps forecast demand, plan stock, and reduce waste using past sales and trends. This eases operations and frees up cash.
When both planning and management work together, businesses can make better decisions. Inventory planning gives direction, and inventory management keeps everything on track. Without strong tracking systems, even the best forecasts won’t help.
Inventory impacts finances directly. Tracking turnover, stock outs, accuracy, storage cost, and lead time helps improve decisions.
CPG brands manage four main inventory types:
- Raw Materials – Basic inputs used to make products.
- Work-In-Process – Producing or packaging the products.
- Finished Goods – Ready to sell or ship.
- MRO (Maintenance, Repair, and Operations) – Supplies used to keep operations running.
Why Seasonal Inventory Management Matters
According to CNN, Even with high prices and fewer jobs, the U.S. economy is still doing well. In July, people spent more money shopping. Retail sales went up by 1%, which is better than expected. Good news: spending keeps the economy strong. Sales increased at car dealers, grocery stores, electronics shops, and restaurants. But clothing and specialty stores had fewer sales. Home Depot and luxury brands are seeing lower sales. But Walmart, Amazon, and Costco are doing well because they offer lower prices. Experts think the Fed may lower interest rates soon, but maybe not by much. They want to make sure inflation is truly under control first.
Poor inventory control leads to stockouts, lost sales, and wasted cash. But, smart inventory planning allows brands to:
- Stay ready for demand spikes.
- Prevent rushed last-minute orders.
- Reduce unnecessary storage costs
- Maximize profit and customer satisfaction
Benefits of Good Inventory Management
- More Sales – Always having products in stock boosts customer loyalty.
- Better Cash Flow – Less overstock means more available capital.
- Lower Costs – Reduces waste, storage, and emergency shipping.
- Improved Customer Experience – Shoppers can always find what they need.
- Stronger Compliance – Helps meet safety, tracking, and reporting standards.
Common Problems with Inventory
- Unpredictable demand – Demand shifts from sales, holidays, and promos.
- Supply chain disruptions –Supplier delays cause stock shortages.
- Overstocking – Overstocking ties up cash and space.
- Stock tracking errors – Tracking errors lead to missed sales.
- Poor timing – Poor timing wastes stock or sales.
- Spoilage risk – Perishable products may expire if not managed carefully.
- Multichannel complexity – Spoilage risk with perishable goods,
- SKU overload – Too many product variations make tracking and managing stock harder.
Handling Seasonal Inventory in CPG
Busy seasons are tough, but early planning helps. Talk to suppliers and prepare your team in advance. Look at past sales to see what sold well, including unexpected items. If you’re selling new products, compare them to similar ones to guess how much you’ll need. Plan promos and stop extra orders when they end. Store extras in warehouses if needed. Space out deliveries and use tools to track stock. Keep your regular items in stock too, not seasonal ones. Don’t forget to stop ordering seasonal products before demand drops. Forecast with data, order as needed, stock best-sellers, use 3PLs, and review after the season.
Planning for Peak: Managing Inventory, Demand, and Delays in August
According to Forbes, August is a slow month for many offices, especially in Europe, as employees go on vacation. But for businesses, it’s still a busy time. While teams are smaller, customer demand can rise. Plan early to avoid stock outs. Use real-time data and AI to handle seasonal demand and spot delays or sudden sales spikes. This way, you can stay ready and avoid problems. Hot weather also brings challenges for transporting items like food and medicine. These products need to stay cool. Smart tools track temps and supply chains in real time to prevent spoilage. Summer’s a good time to go green, use clean energy, eco-packaging, and EVs. AI helps track progress. Sustainability saves money and builds customer trust.
According to Bloomberg , Last year, U.S. retailers ordered early to avoid supply chain delays. Now, with demand slowing down, many stores have too much stock, especially clothes and home goods. To clear it out, companies are offering big discounts, selling on resale websites, holding sample sales, and even giving items to staff. Some are using a method called “pack-and-hold,” which means storing the products to sell next season.
Many companies over-order to avoid running out, but this leads to waste and overproduction. Some brands are now canceling orders or slowing production to manage the extra inventory. Beauty, food, and medicine companies lose the most stock from overordering. On top of that, some items get damaged, spoiled, or arrive too late to sell. Even though supply chains cause a lot of environmental harm, most companies spend very little to fix them.
Conclusion
To do well, CPG brands need both good planning and inventory management. This helps avoid running out of stock or having too much. Plan early, track in real time, and use smart tools to save money and grow. Busy seasons are tough, but smart planning turns them into profit. Matching stock to real demand keeps operations smooth and customers happy.
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