Overstock Management

Overstock management is the process of preventing and handling a situation in which a brand has a surplus of stock.

What Is Overstock Management?

Overstock occurs when a brand or retailer has too much inventory compared to customer demand, resulting in unnecessary stocking costs that can damage a brand's bottom line. Overstock management includes two primary elements: preventing overstocking from occurring and managing it effectively when it does. Both efforts require brands and retailers to automate their inventory and order fulfillment processes using technologies that can help teams track items and forecast customer demand. Inventory management systems can project ebbs and flows in demand to help brands prevent overstocking or stocking out, and their ability to pinpoint item locations and processes can help brands respond effectively to overstocks when they arise. Effective overstock management saves businesses considerable money they'd otherwise spend on full shelves.

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