So it’s crucial that companies always realize the importance of carrying an inventory of fresh products only. Especially with perishable products, the excessive stock may exhaust the cash flow and result in loss of capital for inventing. Such an approach results in great losses for many businesses. Moreover, they think that they will manage to sell the inventory at some point for full price. They believe that having extra stock is not necessarily a bad thing. There are companies that don’t give much attention to having extra stock. So it’s essential that companies take steps toward reducing the amount of excess inventory they carry on hand. There are numerous disadvantages of excess inventory that you want to avoid. So this “deadstock” gets written off companies’ books. So these good and materials lose the usefulness they once carried and companies have to get rid of it. When companies keep the inventory for too long, it starts losing its value and depreciates. In the course of time, this inventory becomes an obsolete stock that carries no value. Excess inventory refers to those products that companies keep for a very long time, failing to sell them in a timely manner. And that’s exactly what excess inventory is. So eventually, these approach the end of their life cycle without getting sold. There are some items that stay on the shelves for too long because of consumers’ lack of interest in them. Products don’t always sell as quickly as anticipated by businesses.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |