Excess inventory and its impact on the environment

Each company has its own set of strategies, KPIs, metrics, and inventory management methods. However, the challenges and problems that businesses face when dealing with inventory are frequently the same, and they can affect any size business.

What exactly is excess inventory?

Excess inventory is a product that has not yet been sold and exceeds the product’s projected consumer demand.

Over-buying, inaccurate projections, canceled orders, a bad economy, unforeseen weather changes, unpredictable consumer demand, or late or early delivery of goods are all examples of stock demand mismanagement.

Why is there excess inventory?

Excess inventory can be caused by a variety of disruptions in the product cycle. These elements can be classified into three types:

Shipment delays of 60% – Delays caused by factors such as processing times, order frequency, and international regulations. These are due to processing times, order frequency, and international regulations.

25 percent Technical challenges – Problems caused by system integration, purchase orders, EDI processing, and a lack of business visibility.

Other factors, such as returns or quality requirements, account for 15% of the total.

Excess inventory is frequently caused by a miscalculation in customer demand in industries that deal with fast moving consumer goods where demand is difficult to predict, resulting in companies over-stocking in slower-moving items.

Excess inventory can result from shifts in consumer behavior and market trends. It often occurs in the retail and home goods industries when seasonal trends change.

Excess inventory has a significant impact – not only on the bottom line of a company, but also on the environment. Climate change awareness has shone a spotlight on sustainability for retailers and their customers.

How does excess inventory affect the environment?

Food Waste

• Resource Depletion: Wastes water, land, and energy.
• Greenhouse Gas Emissions: Produces methane in landfills.
• Loss of Biodiversity: Harms ecosystems through unnecessary agricultural practices.

Cosmetic Waste

• Chemical Pollution: Harmful chemicals leach into soil and water.
• Packaging Waste: Contributes to plastic pollution.
• Resource Intensity: Wastes resources used in production.

Textile Waste

• Landfill Overload: Textiles take long to decompose.
• Water and Chemical Use: Pollutes water with dyes and chemicals.
• Microfiber Pollution: Releases harmful microfibers into water systems.

Solutions for unsold items

Excess inventory can be reduced in any industry by implementing the right inventory technology, which allows for more effective supply chain management, cost savings, waste reduction, and a lower overall carbon footprint.

Brands can gain greater visibility over all of their inventory and access historical data on past performance with a centralized system of record. Using this data, brands can gain data-driven insights that lead to more effective go-to-market strategies, allowing them to optimize excess inventory in a sustainable manner.

Companies can also opt for stock solution services such as Ozeol. Offering global stock solutions since 2010, Ozeol is a worldwide supplier of B2B products. Ozeol allows you to sell your inventories quickly, reducing storage costs. Some of our experts have over 20 years of experience in global business solutions for production.

We operate internationally in order to identify surplus stock of finished products including end of collection, changes in packaging, surplus stock, canceled orders, 2nd choice, and etc.

During the past fourteen years, we have gone limitless to achieve our goals which is to offer you the best solutions for your stock concerns. Ozeol today has more than 600 members in its team thanks to its people who mustered up the courage to take a global perspective and to follow what others would have called “unrealistic ambitions”.

Here’s what to expect from Ozeol:

• Fill the supplier form on our website
• An agent will call you and a sales price will be agreed upon
• We will do a Quality Check
• We take care of the shipment and logistics
• Payment is done

We purchase your excess inventory