How Can Par Levels Help Improve Your Inventory Management?

Published on 25th May 2021

Inventory management is all about getting the balance right. Ensuring that you offer the right selection of products and services to the right customers while you commit to minimizing costs. One thing that can help you to improve yours is to set par levels.

Setting par levels is a useful practice that you should adopt to make managing inventory easier. In inventory management, par represents a level of inventory stock to have on hand to prepare you for any given circumstance. This is how you control stock levels to assure that you will not run out of products or services that you need.

When you are in logistics, you know how important it is to have a healthy and balanced inventory because it aids in getting a tighter grip of over predictability of sales. Setting your stock at par levels will help you achieve just that. To help you out, this article will discuss how it can help improve your inventory       management.

It helps in coping with extreme demand during peak season

During peak season like the holidays and sales, a lot of consumers scramble until the last minute to find and purchase items, thus contributing to the excess in demand of certain products and services. Having an inventory that is at par level will help you in coping with this large traffic in demand.

If you track par levels real-time, you will be able to see which stocks are depleting faster than others and which ones are less in demand. It acts as an indication to order more of the depleted stock from US to Malaysia shipping so you can continue to meet consumers' demand.

If you don’t maintain par levels, you will find yourself struggling to fulfill orders. Professionals that are in commercial real estate brokerage advise to do this as well, because they know that fulfilling orders is the number one priority.

Decreasing dead stock

Dead stock is the products in your shelves that remain unsold at the end of a season. Dead stock can be difficult to get rid of and can cause a financial strain in your business. It also takes up valuable storage space the longer it sits inside your warehouse.

Dead stock usually accumulates with seasonal items. Maintaining a seasonal par level should switch or taper down in response to a new upcoming season. This means you will be able to sell the products that are in demand during peak seasons, which will leave you without an excess supply that can be considered dead stock.

It’s crucial to remember that when setting your inventory at par levels that conditions change over time. Check on par levels a few times throughout the year to make sure that it is still applicable. Par levels vary by product and are based on how fast an item sells and how long it takes to get it back in stock.

This means this process requires research, planning, and efficient decision making for it to be effective.


Par levels help improve inventory management by indicating which items need to be restocked. It helps prepare warehouse management to meet customer’s demand during peak seasons and can reduce costs added by unsold items.

By Princellaine Alibangbang

Freelance digital marketer aiming to help businesses promote their brands. Aside from digital consulting, she has started her online business, Princess’ Corner

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