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Blog posts tagged in excessive stock

Posted by on in Inventory
The Problem with Overstocks and Understocks

Profit and healthy cashflow come from having the stock that customers want, where they want it (ie platform or location) and when they want it.  The consequences of allowing stock to get out of balaqnce with demand can be likened to a seesaw.  You will go broke if you have either of these problems: too much stock or not enough stock.

Inadequate or Lack of Wanted Stock does the following:

  • Creates out of stocks
  • Frustrates customers
  • Loses store credibility
  • Loses sales and affects your cashflow
  • Is the pathway to bankruptcy

Unwanted or Excessive Stock:

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