over investment in inventory

How Can Businesses Avoid Over Investment in Inventory?

To mitigate the risks associated with over investment in inventory, businesses can employ several strategies:
Accurate Demand Forecasting: Utilize data analytics and historical trends to improve demand planning.
Just-In-Time (JIT) Inventory: Implement JIT to maintain minimal inventory levels while meeting demand.
Inventory Management Systems: Invest in advanced inventory management software to track and optimize stock levels.
Supplier Collaboration: Work closely with suppliers to ensure timely deliveries and reduce the need for large stockpiles.

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