Excess Inventory: 5 Hidden Causes Holding You Back
Is your business hiding some extra weight in the back of your warehouse where nobody goes?
It’s a problem most business managers don’t like to think about. We hide the excess in complex spreadsheets and forecasts. Knowing we have too much inventory, we’ll still place orders for overstocked items because of tasty looking incentive discounts.
Solutions for reducing excess inventory are met with skepticism and are perceived as risky, or not practical. We compare ourselves to other businesses that have similar problems, pretending that it is normal for our industry. Sound familiar?
The all-too-simple inventory diet plans will often have you cutting back on the most important items, leaving your inventory even more unhealthy.
When your inventory is so overweight, getting back on track can seem like an impossible task. However, with the right coach and approach, it can actually be quite easy to make a business lifestyle change that will naturally result in a more healthy inventory.
The NETSTOCK team has more than 100 years of combined experience on all sides of supply chain management.
The first step is to gain clarity about where your inventory is today and how much your excess is costing you. NETSTOCK has seen extra stock cause a cascading set of issues, all of which come with a cost.
How much is your business actually wasting on excess inventory?
- Count how much capital is tied up in items that are stuck in your warehouse
- Then, add the cost of the warehouse space required to house excess inventory
- Add the insurance and spillage costs that are guaranteed
- Finally, add the amount of time that workers have to deal with all that extra stuff
The bottom line? Excess inventory = cash flow killer.
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Supply Chains Under Stress: Best Practices for Turbulent Times
Managing supply chain challenges and disruptions is crucial for distributors and manufacturers during normal times. These days are anything but normal, with the extreme supply and demand disruptions caused by COVID-19. Still, the fundamentals for running your supply chain remain the same. There are key best practices that can help you manage the fallout from major and minor disruptions.
Join NETSTOCK and special guest speaker Russ Graf, one of the inventory experts from Sage Inventory Advisor, to learn what steps you can take to weather turbulent times in your supply chain. They’ll examine what to focus on in the short term, mid-term, and long term with your supply chain to stay ahead, even in a chaotic environment.
SAVE THE DATE!
WEDNESDAY, FEBRUARY 17, 2021
10AM PT/1PM ET
