The Hidden Dangers of Overstocking And How to Avoid Them
Inventory management is a critical task in every business. As companies try to keep track of their supplies, they face two significant challenges – overstocking and understocking.
When the latter happens, companies are pressured to retain their customers by replenishing out-of-stock items – this is a tactical approach.
But if there’s no defined strategy to achieve this, they may end up purchasing excess supplies that stay for extended periods on the shelves. An expensive move like this could incur unexpected losses, affecting business growth.
This article shares the five major causes of overstocking, and some proven strategies to prevent overstocking. And, even if you already have excess stock, the tips shared in this guide will help you avoid unnecessary damages and product expirations.