⟩ Explain me do You Have Regular Visibility Into Excess And Obsolete Stock, And Is It Linked To Targeted Action Plans To Sell Off Or Reduce This Inventory?
Typically, excess and obsolete stock stems from ineffective sales forecasting, planning or using a business model that fails to factor in product complexity and life cycles correctly. Inventory leaders establish processes to determine why excesses are being created and then develop a plan of action to sell it off. In some instances, the fear of the write-off has led to a large buildup over time of obsolete inventory.
