Excess Inventory and Its Common Causes

1. Excess Inventory and Its Common Causes The problem of Tablets Over Stock is a common issue faced by a lot of companies or businesses dealing with different kinds of physical products. These traders and business owners replete their warehouses with a lot of stock of a single SKU. The purchasing process must be carried out strategically to avoid the unsold pile of stock in the warehouse. Business owners make miscalculated decisions regarding the stock in the warehouse and thus they end up facing the same issue of excess inventory every now and then. There are many causes that lead to the accumulation of excess inventory in the warehouse. Let us look at some of the common reasons and practices that lead to excess inventory like laptop bulk stock or mobile Mobile ageing stock, Electronics ageing stock in the warehouse. Intuitive Ordering There are different kinds of tools and technology available to forecast the demand for a product or a service. Instead of using these precision tools, a lot of

2. companies rely on intuitive ordering for maintaining or ordering the stock. Intuitive ordering in place of demand forecasting tools can lead to the accumulation of overstock that can turn into ageing stock in the warehouse in no time. This is one of the major causes that lead to excess inventory in the warehouse. Bulk Ordering for cheaper rates A lot of suppliers lure business owners and traders into buying more stock by offering cheaper prices for the bulk orders. For instance, electronic shops owners find it advantageous to buy Monitors Ageing Stock and Desktops ageing stock at cheaper rates rather than ordering a lesser quantity at a higher price. This could possibly result in the formation of excess inventory in the warehouse. This tactic is a disadvantage for the business in the long run and can affect the bottom line of the business. Poor Order Calculation Businesses must always be proactive in order calculation. This tool helps businesses in understanding the projected demand for products in the upcoming season and how to use these numbers for order calculation and management. Many businesses are inefficient in this practice which usually results in excess inventory. Excess inventory is a problem that can’t be completely eliminated but business owners can try to handle this situation and turn it into a profitable opportunity. Excess inventory liquidation companies like excess2sell provide the most efficient and profitable way to deal with Home Appliances ageing stock . Sellers from different industries can sell their excess inventory at excess2sell at a good profit margin and liquidate it for instant money.