{"id":14483,"date":"2023-02-27T12:55:58","date_gmt":"2023-02-27T07:25:58","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=14483"},"modified":"2024-06-07T11:39:56","modified_gmt":"2024-06-07T06:09:56","slug":"a-deep-dive-into-excess-inventory-woes-causes-and-costs","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/","title":{"rendered":"A Deep Dive Into Excess Inventory Woes: Causes And Costs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1af7f95b253\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1af7f95b253\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#what-is-excess-inventory\" title=\"What is excess inventory?\">What is excess inventory?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#why-is-excess-inventory-such-a-big-problem\" title=\"Why is excess inventory such a big problem?\">Why is excess inventory such a big problem?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#excess-inventory-costs-that-retailers-deal-with\" title=\"Excess inventory costs that retailers deal with\">Excess inventory costs that retailers deal with<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#working-capital-accrued-interests\" title=\"Working Capital &amp; Accrued Interests\">Working Capital &amp; Accrued Interests<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#storage-costs\" title=\"Storage Costs\">Storage Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#service-cost\" title=\"Service Cost\">Service Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#stock-devaluation\" title=\"Stock Devaluation\">Stock Devaluation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#inefficient-transportation\" title=\"Inefficient Transportation\">Inefficient Transportation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#environmental-waste\" title=\"Environmental Waste\">Environmental Waste<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#challenges-with-selling-excess-inventory\" title=\"Challenges with selling excess inventory\">Challenges with selling excess inventory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/#so-how-do-we-make-this-easier\" title=\"So, how do we make this easier?\">So, how do we make this easier?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-excess-inventory\"><\/span><strong>What is excess inventory?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Excess inventory<\/strong> is when a business carries more stock than they need to meet its forecasted demand. This is not to be confused with buffer stock, which is typically additional stock carried by the business to make up for any supply chain issues or surges in sales. Excess inventory, on the other hand, is <strong>stock that builds up in the inventory unintentionally due to poor sales or demand or poor forecasting and purchasing decisions.&nbsp;<\/strong><\/p>\n\n\n\n<p>Excess inventory eats into a business\u2019s revenue bit by bit and is a problem that needs to be tackled with a deft hand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"why-is-excess-inventory-such-a-big-problem\"><\/span><strong>Why is excess inventory such a big problem?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Excess inventory cannot be avoided. Let\u2019s get that out of the way first. That being said, WHY do we end up with excess inventory so often?<\/p>\n\n\n\n<p>Well, in today\u2019s TikTok-led world, <strong>consumers have become more fickle than ever,<\/strong> so you can never accurately tell what product will fly off the shelves and what product will collect dust instead. This is <strong>especially true for retail segments<\/strong> like fast fashion, food &amp; beverages, and even beauty &amp; skincare. These are also, unsurprisingly, the most polluting retail industries from an environmental standpoint.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-1024x576.jpg\" alt=\"\" class=\"wp-image-14491\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1848611221-1-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Secondly, forecasting errors and supply chain disruptions. It&#8217;s becoming increasingly <strong>hard to accurately predict demand and stock availability <\/strong>when you take into account geopolitical events like the Ukraine-Russia war and the impact covid has had around the world. The lockdowns that were put in place around the world during the pandemic are continuing to have an effect on supply chains even today. Forecasting demand and supply chain issues can be managed to a large extent if businesses switch to AI-based forecasting solutions that are better equipped to handle and process large quantities of data for pattern recognition.<\/p>\n\n\n\n<p>Clearly, excess inventory is born because there are way too many factors to be considered and <strong>businesses would rather err on the side of having excess inventory than not having enough inventory to meet demands<\/strong> and lose out on sales.&nbsp;<\/p>\n\n\n\n<p>But<strong> excess inventory is a costly affair. <\/strong>The excess inventory costs eat into margins quite a lot, not just in terms of actual product cost but also the manpower employed to maintain and then sell or destroy them. Not to mention the amount of time it would take for it to go from warehouse to contract as well as the redundant back-and-forth communication.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"503\" height=\"283\" src=\"https:\/\/lh4.googleusercontent.com\/T3dNrlK12W4diV-k_h_WbQq4HkkMhuCNwjtspByjgxhDGJLlPzwQa6iHGml-b6MXwZ5m2HHDo5_-xtTcjAo5cd2Bs_rPB-IJwFBBU9p0QbkM6-OxzHYLXvkHIYFq5JQfvQurrbHe2WSU0uJ96Uo5vaY\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"excess-inventory-costs-that-retailers-deal-with\"><\/span><strong>Excess inventory costs that retailers deal with<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Excess inventory tends to have a varied number of costs associated with it. From managing the space to trying to sell devaluing inventory at huge discounts, businesses need to plan their excess inventory properly or potentially end up losing more money than just the stock value. Recently, environmental costs have also been paid a lot of attention to.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"working-capital-accrued-interests\"><\/span><strong>Working Capital &amp; Accrued Interests<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unarguably, cash flow is extremely important for every business. <strong>Excess inventory ties up working capital,<\/strong> i.e., money that can be spent to pay employees or buy potentially moving stock is instead spent on goods that are sitting idly in the inventory. Add to this the <strong>accumulating interest on working capital and opportunity cost<\/strong>, i.e., the difference in choosing to spend on this stock versus other business spends, which can add up very fast. For example, if most of your cash is tied up in inventory, you lose the opportunity to invest in other areas of the business, such as marketing or newer inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"storage-costs\"><\/span><strong>Storage Costs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This includes a combination of the <strong>rent on the warehouse itself (or mortgages), and maintenance costs (lighting, heating, or air conditioning).<\/strong> The more amount of space used to hold excess inventory, the less space you have to buy and store newer inventory or products that are actually fast-moving. If you look at this from a CPG industry point of view, it becomes all the more worrying because these products have an expiration date. There\u2019s always the possibility that businesses pay a lot of money to maintain these products at optimum condition but are still forced to destroy them once they hit expiration. During sales like Black Friday, this cost compounds because businesses rent out additional spaces to hold more inventory.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"service-cost\"><\/span><strong>Service Cost<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These costs typically include <strong>insurance, security, IT hardware, software, and the cost of manpower required <\/strong>to maintain these goods. Additional warehouse spaces mean <strong>increased personnel costs<\/strong> as well. If the inventory gets damaged, stolen, or lost, the businesses must bear that cost as well as the cost of replacing that inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"stock-devaluation\"><\/span><strong>Stock Devaluation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Any product left in the inventory for too long loses its value.<\/strong> It&#8217;s in the business&#8217; best interest to sell them off as soon as possible to recover margins. For industries like CPG, this becomes paramount <strong>because expired products must be destroyed and cannot be sold at cheaper prices<\/strong> like with fashion. The other side of this story is that for fashion and beauty, <strong>trends change at a rapid pace <\/strong>that businesses can&#8217;t keep up with, so it&#8217;s important that they offload excess inventory to other marketplaces and big retailers as soon as possible to avoid significant losses.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"663\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-1024x663.jpg\" alt=\"\" class=\"wp-image-14492\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-1024x663.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-300x194.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-768x497.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-1536x994.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-2048x1326.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_1899164494-150x97.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"inefficient-transportation\"><\/span><strong>Inefficient Transportation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Transportation costs tend to add up over time. While transporting excess goods from one warehouse to another, <strong>the amount of fuel needed to transport<\/strong>, either over the road or by sea, or by air can become very expensive. For example, businesses still struggle to maximize truck capacity when transporting goods. They might plan for a trip from Michigan to Colorado which requires a lot of fuel but carry only half the truckload capacity. The lack of transportation optimization can lead to <strong>greater fuel use and more harmful greenhouse gas emissions.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"environmental-waste\"><\/span><strong>Environmental Waste<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The worst-case scenario for every business out there is to get rid of the stock by destroying or discarding them. This is especially true for CPG and grocery businesses whose products have a shorter shelf life. Recently, fashion brands have been under fire because many brands choose to dump their excess inventory into landfills or burn them so as to not dilute their brand quality. Either way,<strong> unsold excess inventory incurs an additional cost to the company as the products are being destroyed <\/strong>(&amp; are causing harm to the environment) and also need to be replaced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"challenges-with-selling-excess-inventory\"><\/span><strong>Challenges with selling excess inventory<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the costs associated with excess inventory are on one side of the equation, selling them once they are deemed \u201cexcess inventory\u201d is on the other side of the equation. A very hard equation. The process is quite long and difficult.<\/p>\n\n\n\n<p><strong>So what does <a href=\"https:\/\/www.vue.ai\/solutions\/excess-inventory-management\/\">excess inventory management<\/a> look like today?<\/strong><br>Businesses usually employ teams of people who go through all the <strong>data from multiple sources and compile it into one or more spreadsheets <\/strong>(the most common format). They then go through the data <strong>manually<\/strong> and identify how much excess product is left, categories, and time left before expiry (for CPG) and take a lot of time in <strong>filling out any discrepancies in the data<\/strong>. Multiple people working on the same sheets means a lot of back-and-forth communication, human error, and inaccuracies in the sheet.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-1024x683.jpg\" alt=\"\" class=\"wp-image-14493\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-1024x683.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-768x512.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-1536x1024.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-2048x1365.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/shutterstock_662220520-150x100.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Post this they have to <strong>go through a tedious negotiation process t<\/strong>hat can involve manually tracking and adjusting product quantities, pricing information, attaching images, and more across spreadsheets, emails, and phone calls. Not to mention having to <strong>track multiple offers from buyers and identify which makes the most sense <\/strong>from a margins point of view. Reviewing competing offers requires hours of sifting through spreadsheets and emails just to understand how much inventory each potential buyer is willing to take and at what price point, and it\u2019s not always immediately obvious which offers are better than others. As a result, brands <strong>miss out on key opportunities to maximize their margin recovery <\/strong>or increase the volume of inventory sold. The risk of over-selling is also high, considering the volume involved which can negatively impact the trust a buyer might have in them\/the business.<\/p>\n\n\n\n<p>From the buyer\u2019s side, this process of evaluating offers can be labor-intensive and cumbersome, involving multiple emails and phone calls.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"so-how-do-we-make-this-easier\"><\/span><strong>So, how do we make this easier?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not using spreadsheets and emails, that&#8217;s for sure. Alternatively, you can use a solution that would <strong>automate all of the steps mentioned above into a single dashboard<\/strong>. Imagine a solution that&nbsp;<\/p>\n\n\n\n<p>1 &#8211; is capable of<strong> automatically organizing all your excess inventory<\/strong> from the spreadsheets you upload<\/p>\n\n\n\n<p>2 &#8211; would help you <strong>create individualized offers easily <\/strong>&#8211; assigning products &amp; units with specific price points for each, setting negotiation conditions including truckloads<\/p>\n\n\n\n<p>3 &#8211; will help you <strong>compare wholesale, retail and offer prices easily <\/strong>for each product enabling you to get the highest margins<\/p>\n\n\n\n<p>4 &#8211; makes life easier for both you and your buyers by <strong>providing a single space for you to negotiate and chat <\/strong>regarding every single product in the offer<\/p>\n\n\n\n<p>5 &#8211; <strong>automatically remove products in allocated and accepted offers <\/strong>from the overall inventory to avoid over-selling.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"800\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1-1024x800.png\" alt=\"\" class=\"wp-image-14494\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1-1024x800.png 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1-300x234.png 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1-768x600.png 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1-150x117.png 150w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2023\/02\/UC1.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>This is what <strong>Vue.ai\u2019s <a href=\"https:\/\/www.vue.ai\/solutions\/excess-inventory-management\/\">excess inventory management solution<\/a>, INTURN<\/strong> does. No more back-and-forth phone calls or emails filled with filtered spreadsheets. <strong>Just a single dashboard<\/strong>. As a leader in supply chain visibility, Vue.ai offers solutions that empower teams  to <strong>proactively optimize existing overstock to maximize recovery.&nbsp;<\/strong><\/p>\n\n\n\n<p>We\u2019ve partnered with leading brands across industries worldwide, each with its own set of unique challenges to solve. <a href=\"https:\/\/www.vue.ai\/solutions\/excess-inventory-management\/\">Get in touch<\/a> to learn how our solution can help you optimize your inventory.&nbsp;<\/p>\n\n\n\n<p>Alternatively, if you would like to read more about the solution, you can head over to <a href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-smarter-way-to-manage-excess-inventory-inturn\/\">part 2 of this blog series<\/a>!<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Check More About <strong><a href=\"https:\/\/www.vue.ai\/solutions\/excess-inventory-management\/\">Excess Inventory Management<\/a><\/strong><\/h4>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> What is excess inventory? Excess inventory is when a business carries more stock than they need to meet its forecasted demand. This is not to be confused with buffer stock, which is typically additional stock carried by the business to make up for any supply chain issues or surges in sales. Excess inventory, on the  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":14495,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1162,1471],"tags":[1476,1470,1472,1473,169,711,1475,1474],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Deep Dive Into Excess Inventory Woes: Causes And Costs | Vue.ai Blog<\/title>\n<meta name=\"description\" content=\"Excess inventory is born because businesses would rather err on the side of having more goods than not having enough to meet demand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-deep-dive-into-excess-inventory-woes-causes-and-costs\/\" \/>\n<meta property=\"og:locale\" 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