Self-Inflicted Obsolete Stock: Common Inventory Pitfalls and How to Avoid Them through Improved Communication

Do NOT confuse high stock with good availability.

In reality:

More inventory = Worse delivery on time

Self-Inflicted Obsolete Stock:

1. Promotion items without telling the planner.
Sale increases due to promotion.
Planner orders more.

By the time stock comes, promotions have ended and sales are low.

2. Order lots of New versions of an older item.
Without having a clear plan of what to do with older version stock.

3. Launch a new season.
Without having a clear plan of what to do with deleted items stock.

SOLUTION:
Improve communication between departments.

Other departments rarely understand:
– Challenges of balancing inventory
– Concept of lead time