Disadvantages Of Excess Inventory

excess inventory

excess inventory

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Impacts of excess inventory 

As we know that cash flow is the lifeblood of many businesses. Without a proper income stream, businesses can face difficulties in paying their employees; it will become a challenge for them to pay debts and even to stay in trading. Here are some impacts of excess inventory that can lead to the downfall of your business. Having an excess inventory will cost you more as you have to pay more carrying costs for your products. 

If you are a distributor of Ayurvedic products, then you should keep a balance in your inventory. Having enough stock for Ayurvedic products in demand and keeping moderate stock for less demanding products is the best strategy to go for.

Kairali Ayurvedic Products is one of the pioneers in Ayurvedic Products Manufacturing. They have a perfect management system that prevents distributors from having excess inventory. Their products are always in demand, and with high secondary sales, also the products are replenished based on the fast movers.

Excess inventory can lead to poor quality goods and degradation.

If you’ve got high levels of excess ayurvedic products, then chances are you have low inventory turnover. Unfortunately, excess stock resting on warehouse shelves will surely begin to deteriorate and perish. Ayurvedic products need to be fresh, so the best strategy is to regularly put these products in your inventory instead of buying them in bulk and storing them in excess.

Kairali Ayurvedic Products always keeps a tab on their distributors if there is any excess or perishable inventory and ensures that the inventories of their distributors are sold to their customers. Kairali always prevents its distributors from letting their inventory deteriorate. 

Excess inventory can result in stock obsolescence.

Excess inventory can lead to poor forecasting and purchasing. For example, suppose you've bought too much of a specific product, and the demand for that particular item hits zero for a prolonged period. In that case, the result is the loss in business and obsolete stock on warehouse shelves.

Obsolete stock leaves a negative impact on profitability. Items with no demand often have to be sold at a discounted rate or, even worse, end up being written off altogether.

About Kairali Ayurvedic Products (KAP)

KAP is one of the world's leading Ayurvedic Company and manufactures more than 923 Ayurvedic & Herbal Products & Sanitizer. It exports to 15 countries and 20 States. Kairali is always looking for Ayurvedic Distributors/Wholesalers/Super Stockist across the world. Kindly connect with us and help us spread Ayurveda across the globe.

Our Team is always helping & supporting its partners to give them the complete utilization of their investments and provide them with the best returns on capital.

You can reach out to us at +91-9555156156 or email us at support@kairaliproducts.com.