You need to reduce excess inventory without causing supply chain issues. How will you manage it?
Effectively managing excess inventory without impacting your supply chain involves strategic planning and proactive measures. Consider these strategies:
How do you handle excess inventory in your business?
You need to reduce excess inventory without causing supply chain issues. How will you manage it?
Effectively managing excess inventory without impacting your supply chain involves strategic planning and proactive measures. Consider these strategies:
How do you handle excess inventory in your business?
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To reduce excess inventory without supply chain disruptions, I’d first analyze stock to identify surpluses, focusing on slow-moving or overstocked items. Procurement adjustments, such as reducing reorder points and halting new orders for surplus products, would prevent further accumulation. I’d promote demand through substitutions and redistributions, collaborate with stakeholders for inter-facility transfers, and donate near-expiry items if appropriate. Enhanced forecasting, agile inventory systems, and supplier flexibility—like buybacks or adjusted schedules—ensure balance while preventing future overstock.
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- Optimize reorder levels using demand forecasting. - Implement inventory classification (ABC analysis) to focus on high-value items. - Offer discounts or promotions to clear slow-moving stock. - Collaborate with suppliers to adjust order quantities. - Use just-in-time (JIT) practices to align inventory with demand. - Improve demand planning through real-time analytics. - Repurpose or reallocate excess stock to other business units or regions. - Regularly review and update inventory management processes.
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