What are the disadvantages of excess inventory? A thorough explanation of causes and countermeasures.
You can understand how to prevent excess inventory and achieve profit improvement through demand forecasting and inventory management optimization using AI.
Excess inventory refers to a situation where stock levels exceed sales plans, posing a significant management risk for companies. When excess inventory occurs, various disadvantages arise, such as increased storage costs, worsened cash flow, and decreased product value. Furthermore, if inventory remains in the warehouse for an extended period, it can lead to reduced operational efficiency and waste losses, ultimately putting pressure on profit margins. To prevent these disadvantages of excess inventory, it is crucial to correctly understand the causes and take early measures. This article will clearly explain the main causes of excess inventory and the differences between stagnant inventory and surplus inventory, as well as introduce specific strategies to minimize risks. *For more detailed content of the blog, please refer to the related links. For more information, you can download the PDF or feel free to contact us.*
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