Overstock, excessive stock, excess2sell, B-stock, or excess inventory, is the result of poor management of stock demand or of material flow in process management. Excessive stock is also associated with loss of revenue owing to additional capital bound with the purchase or simply storage space taken. Excessive stock can result from over delivery from a supplier or from poor ordering and management of stock by a buyer for the stock.[1]
When referring to overstock merchandise in the form of consumer goods in a retail operation, the term refers to goods that have never been purchased by a customer but that are considered excessive stock from shelves and/or warehouses. Excessive stock is typically discarded of in the following ways: returned to the manufacturer or original distributor; liquidated to companies that then resell it on the secondary wholesale or retail market; sold at an extreme discount to existing customers; or sold to salvage companies which then process metals and components of value.
The initial damage caused by excessive stock is an early exhaustion of cash flow, which leads to the subsequent loss of disposable capital available for investing. If a company has too much overstock inventory on its books, it may affect sales to the point where the company has to go out of business. Although this is rare, when overstock inventory is not properly managed and becomes too large a percentage of total inventory, it can result in bankruptcy.[2]
With perishable supplies, excessive stock can cause the loss of millions of currency units as the product's freshness may deteriorate to such an extent that it cannot be sold, as is the case with dairy products, fresh baked goods, flowers, produce, fish, and meat. It is also true of consumables such as oil, gasoline, paints, and medications. Time-sensitive items such as periodical literature are similarly at risk.
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March 04, 2023
overstock, online, retailer, excessive, stock, excess2sell, stock, excess, inventory, result, poor, management, stock, demand, material, flow, process, management, excessive, stock, also, associated, with, loss, revenue, owing, additional, capital, bound, with. For the online retailer see Overstock com Overstock excessive stock excess2sell B stock or excess inventory is the result of poor management of stock demand or of material flow in process management Excessive stock is also associated with loss of revenue owing to additional capital bound with the purchase or simply storage space taken Excessive stock can result from over delivery from a supplier or from poor ordering and management of stock by a buyer for the stock 1 When referring to overstock merchandise in the form of consumer goods in a retail operation the term refers to goods that have never been purchased by a customer but that are considered excessive stock from shelves and or warehouses Excessive stock is typically discarded of in the following ways returned to the manufacturer or original distributor liquidated to companies that then resell it on the secondary wholesale or retail market sold at an extreme discount to existing customers or sold to salvage companies which then process metals and components of value Contents 1 Economic implication 2 See also 3 References 4 External linksEconomic implication EditThis section does not cite any sources Please help improve this section by adding citations to reliable sources Unsourced material may be challenged and removed March 2017 Learn how and when to remove this template message The initial damage caused by excessive stock is an early exhaustion of cash flow which leads to the subsequent loss of disposable capital available for investing If a company has too much overstock inventory on its books it may affect sales to the point where the company has to go out of business Although this is rare when overstock inventory is not properly managed and becomes too large a percentage of total inventory it can result in bankruptcy 2 With perishable supplies excessive stock can cause the loss of millions of currency units as the product s freshness may deteriorate to such an extent that it cannot be sold as is the case with dairy products fresh baked goods flowers produce fish and meat It is also true of consumables such as oil gasoline paints and medications Time sensitive items such as periodical literature are similarly at risk See also EditInventory Inventory control system Inventory management software Military surplus Operations management Supply chain management Warehouse management systemReferences Edit Reorganisation von Bauprozessen PDF 2004 07 22 Retrieved 2013 01 22 Buyers of Overstock Inventory merchandiseusa com Retrieved 2023 01 06 External links Edithttp www iamwire com 2017 07 excess2sell b2b excess inventory liquidation platform 155506 dead link Excess2sell Buy or Sell Excess Inventory Online Startup Ranking Startup Ranking Retrieved 2023 01 06 Checkers India unveils India s First Excess Inventory Marketplace www excess2sell com NCNONLINE ncnonline net Archived from the original on 2017 04 22 Retrieved from https en wikipedia org w index php title Overstock amp oldid 1132024451, wikipedia, wiki, book, books, library,
