Managing excess inventory requires understanding why it accumulates in the first place:
Overstocking: Balancing Inventory for Profitability Overstock occurs when a business holds more inventory than customer demand justifies. While having extra stock can act as a buffer against supply chain disruptions, excessive surplus often leads to financial strain through tied-up capital and increased storage costs. Core Causes of Overstock overstock
: Bulk purchase discounts or high minimum order quantities (MOQs) may force businesses to buy more than they need. : Keeping high "safety stock" to avoid stockouts
: Keeping high "safety stock" to avoid stockouts can inadvertently lead to overstocking if demand dips. The True Cost of Excess Inventory
Preventing Stockouts and Overstock: Smart Inventory ... - Supy
: Rapid changes in consumer trends or seasonal demand can leave previously popular items stagnant. The True Cost of Excess Inventory