Warehouse Wizard Series Part 4: Reducing Excess Inventory

Excess stock is driven by incorrect levels.

A common problem we see is incorrect levels. It starts with how you control and manage your inventory, and it cascades from there into costly challenges like stock-outs and excess stock.

First things first: you have to know how much you have and where you have it. You simply can’t fulfill orders in a timely fashion unless you have the process and tools in place to manage your stock, and that’s even more true if you run multiple warehouses.

Secondly, you can’t plan your inventory if you don’t have that control over your levels. Stock-outs are an obvious result, so most businesses simply choose to overstock items so they don’t have to worry about being unable to fill an order. However, this is an expensive way to fix the stock-out problem, and it will stunt your business’ growth.

For more on what you need to think about when it comes to getting your levels straight, especially in terms of excess, read Incorrect Levels Drive Excess Inventory.

Contact us to learn how we can help you prevent excess inventory resulting from incorrect levels.


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