Over the years, demand planning and inventory optimisation have always been a hot topic for discussion. For many of these businesses, excess stock is both a major speed bump and something which causes headaches for management, finance and supply chain teams alike.
While there are a few specific segments of the automotive aftermarket where excess inventory is an unavoidable part of their business model, there are very few examples of businesses where no reduction in excess inventory could be achieved at all.
The influence of excess stock on business’ performance
In the vast majority of organisations, regardless of the reasons that caused the excess stock, it is typically involuntary and unwanted. But what are the tell-tale signs that excess stock is putting the brakes on your business’ performance?