They say you can’t have too much of a good thing. But when you have excess inventory that you can’t seem to sell, you’ll probably beg to differ.
One of the most important (and challenging) duties of small business ownership is effectively managing inventory. Managing inventory is a delicate balancing act. You want enough inventory to fulfill all of your orders but not so much that you can’t sell it all.
The costs of carrying excess inventory can be huge, potentially costing businesses millions each year.
On the other hand, data science-based inventory forecasting techniques may save 10-20% on inventory costs every year, even if you operate on a purely make-to-order model.
Properly managing inventory is one key to small business success, evidenced by the fact that companies with low inventory and high turnover outperform those with high inventory and low turnover.
When you’re stuck with a sudden surplus and can’t seem to sell it, it’s concerning. As such, we’ve put together a guide to help you navigate excess inventory to ensure it doesn’t become a financial drain on your business.
Related: Inventory management 101
What is excess inventory?
First, let’s define what excess inventory actually is. Inventory refers to