Holding excess inventory can present pros and cons to your company. You might carry excess stock as you prepare for the holiday season or simply due to poor management and forecasting. No matter the reason for holding excess inventory, one thing is certain: Where do you keep it?
There are costs that come from holding too much stock. If you don’t sell your products, you end up at a financial loss, especially when you take storage into consideration. Luckily, there are options to make sure you have the best storage options available, especially when using Mesa Moving and Storage. Let’s consider the pros and cons of holding too much inventory and what you can do about it.
Benefit vs Cost
There are actually a few benefits to holding too much in your inventory. Though this generally doesn’t outweigh the cost, there are some perks to consider:
- You have a higher percentage of order fill rates. It’s easy to lose customers if you can’t fill their order quickly. When you have excess stock, orders are on time.
- You won’t have product shortages. This gives you a buffer stock and helps reduce lead-times of delivery. In the end, this also keeps your customers happy, and happy customers are returning customers.
What’s the cost of holding too much?
- It can tie up cash flow. You’re going to hold high carrying costs and use funds that could be used elsewhere. This slows down cash flow.
- Sometimes, inventory can become obsolete. If you have too much, that money is gone because you won’t be able to get rid of the product.
- You may have to pay for storage. Inventory has to be stored somewhere, and if you have too much, inventory storage is going to cost you money.
Storing with Mesa Moving and Storage
If you have to use inventory storage, Mesa Moving and Storage uses state-of-the-art facilities to make sure your product is protected–no matter what it is.
Our secure warehouse facilities are neat, clean, climate-controlled, and contain racks to fit any storage needs. Everything is monitored 24/7 and includes long- or short-term storage options. Electronic bar-coded inventory storage is organized in a manner that allows your products to be found and picked quickly when you need to get your stock moving to customers.
To learn more about how Mesa Moving and Storage can improve your inventory storage needs–and cost–give us a call today and get a free quote.