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Topic: excess inventory

How to calculate safety stock – with formulas and examples

To calculate safety stock, work out your average daily use for a product and multiply it by its average lead time – how long it takes, in days, to arrive once you place an order. Then subtract this number from your maximum daily use times your maximum lead time. The result is the safety stock […] ... Read More

  November 27, 2020     

Overhauling Your Inventory Management System as the New Year Rolls In

With the first quarter of the new year in full swing, it is vital that you establish and follow resolutions for your business. Perhaps one of the most important areas of your business to overhaul and revitalise is inventory management. However, for this to be a success we must visualise what the end goal is […] ... Read More

  February 1, 2019     

How To: Improving Your Inventory Turnover Ratio

If you’re in business, you may have heard of something called inventory turnover. So, what exactly is it and why is it important for business owners? In this article, we explore the ins-and-outs of inventory turnover and how you can improve your inventory turnover ratio to maximise the success of your company. The basics Essentially, […] ... Read More

  December 7, 2018     

Why Your Business Needs to Know About Anticipation Inventory

A common way to categorise inventory is by its function. Anticipation inventory is one of the four basic functions of inventory. It is excess levels of product held in anticipation of specific or uncertain demand. The key difference of anticipation inventory from regular inventory is that there is a reason that can be pointed to […] ... Read More

  October 4, 2018     

Expecting Demand to Spike? Anticipatory Inventory Could be the Answer

For businesses with unclear or fluctuating demand from customers, holding anticipatory inventory can be the only way to ensure timely product delivery. Anticipatory inventory can be defined as the accumulation of excess stock in the anticipation that it is going to be sold due to an increase in demand. This could be seasonal, such as […] ... Read More

  September 13, 2018     

How Can a Business Manage Dead Stock?

When it comes down to it, dead stock is money wasted. Holding stock is a huge financial investment, so if demand slows or even stops for particular items in your inventory, you risk making no return on that investment, which is very problematic for your bottom line. Sometimes, your business will accumulate dead stock. In […] ... Read More

  September 10, 2018     

The Ins-and-Outs of Dead Stock Inventory

There are a few key terms and phrases in the world of business that any successful business owner should know. One of those, commonly used in business parlance, is what we call dead stock inventory. Sounds scary, right? Well, in some situations, it can be. In the following article, we break down the ins-and-outs of […] ... Read More

  September 8, 2018     

How to Benefit from Seasonality

The weather isn’t the only thing changing with the seasons. As different seasons roll around, consumers buying habits shift. They might need new clothes for the season ahead or different products to help them cope with the shift in weather. It might be time for summer camp or the holidays might be sneaking up on […] ... Read More

  June 11, 2018     

Be Strategic with Excess Inventory

When you are a manufacturer, inventory is always on your mind. You don’t want to produce too much inventory, but you don’t want to have too little either. In theory, with the right calculations and demand predictions, you shouldn’t end up with excess inventory. However, real life is different to theory. Unexpected events happen or […] ... Read More

  June 9, 2018     

Best Practices for Inventory Spring Cleaning

Even the best inventory management system requires the occasional clean-out of excess product. When it’s time to spring clean your stock, it could also be time to focus on the organising inventory control to optimise management processes. Improving inventory accuracy can be achieved by regularly taking stock and managing supplies accordingly. Whi ... Read More

  June 5, 2018     

It’s Time to Clean Out Your Inventory Stock!

Having too much inventory stock on hand costs your business money that could be put to better use. Holding too much inventory stock raises your storage costs and as a result the cost of goods sold. Centralised inventory management system Most businesses will experience peaks and dips. In the relatively calmer periods of business, why […] ... Read More

  June 4, 2018     

4 Strategies to Clear Excess Inventory Stock

In preparation for the busy summer season ahead, taking time to assess and plan is a worthwhile use of your resources and has many benefits. With the lull of the spring season, excess inventory stock can be an issue for retailers. Many businesses will wait to see if excess items will sell to justify their […] ... Read More

  June 1, 2018     

Manufacturers, Clear Out Your Excess Inventory!

As it comes time to declutter and reorganise your production line, assessing your manufacturing inventory management habits should be a top priority to reduce future excess inventory and ensure your business is running at its full potential. However, if you have redundant stock you still need to clear out, here are some tips on dealing […] ... Read More

  June 1, 2018     

Reduce Excess Inventory to Save the Planet!

Excess stock stored in a warehouse is normally something to avoid when it comes to inventory management as it ties up a significant amount of money which could be used. In fact, studies have estimated the global inventory value to be approximately $8 trillion, with a quarter of that belonging to the US alone. If […] ... Read More

  May 15, 2018     

What do you do with excess inventory?

The world is increasingly looking towards a more sustainable and eco-friendly future. There is also an increasing push for corporate sustainability in terms of sourcing, manufacturing, packaging, and distributing, meaning companies that lessen their environmental impact will gain a competitive edge. There have already been shifts in areas of manufa ... Read More

  May 5, 2018     

Can excess inventory be managed sustainably?

Consumers demand goods and that means there needs to be inventory to fulfil those demands. However, what happens when a company’s inventory stock exceeds demand? The global demand for goods continues to rise, increasing our environmental footprint. Whenever inventory stock is produced, it needs energy and water. In turn, carbon is emitted into th ... Read More

  May 4, 2018     

A Festive Balancing Act: Preparing for Holiday Season Sales

One of the many factors affecting inventory management is timely planning and preparation. If you are only now preparing for the holiday season sales, then your inventory control is likely to be out of control. Sure, if you have a warehouse full of surplus goods, holiday season sales provide a great opportunity torid yourself of […] ... Read More

  December 15, 2017     

Are You Making These Five Inventory Management Mistakes?

Inventory management is a perpetual challenge for many businesspeople. Without using inventory management software, keeping track of every moving part can be time consuming, resource intensive and difficult. It can be hard to know where to start, so if your business is looking to get inventory under control, consider these five basic inventory mana ... Read More

  November 17, 2017     

Three proven ways of turning the tables on excess inventory stock

Overstocked inventory happens when a business inaccurately orders inventory stock and is left with more than the market demands. Having excess inventory stock is bad for business because it means that there are associated inventory turnover problems and the costs involved with managing it are not great for the bottom line. Excess inventory stock ca ... Read More

  August 21, 2017     

Inventory Management and Ordering Crash Course

Doing inventory management well will increase customer satisfaction and reduce wastage costs, both of which are great for the bottom line. ... Read More

  April 20, 2017     

How to turn the problem of being overstocked into a business opportunity

Overstocked? Don't worry, this negative can be turned positive, and even give you a chance to re-engage with your customers. ... Read More

  March 1, 2017     

Overstocked? Don’t despair! Tips for dealing with excessive stock

Being overstocked is a situation to avoid, however sometimes this is just not possible. You need to handle it properly and turn it into a benefit. ... Read More

  January 24, 2017