Excess Inventory Management for E-Commerce Brands During Economic Slowdowns
During economic downturns, e-commerce brands can find themselves having to reassess their purchasing habits, rendering the process of planning, stocking, and moving product less predictable. Under these circumstances, Excess Inventory Management is an essential practice of good operations that prevents liquidity from being tied up in unsold products while keeping the service going. It is about the balancing of demand uncertainty and supply commitment, decreasing overstock risk, and enhancing warehouse efficiency without any sacrifice of the fulfillment speed for customers. Why Inventory Surpluses Increase During Slowdowns When demand patterns become volatile and unpredictable, and/or the forecasting models become less accurate during downturns. Purchasing orders placed in the past under optimistic projections may not be harmonised with real consumption patterns. This means that combined, there is a build-up of a multi-object class inventory. Furthermore, purchasing policies such ...