To avoid overstocking, entrepreneurs should implement the following strategies:
Accurate Demand Forecasting: Use data-driven methods to predict demand accurately. Inventory Management Systems: Invest in robust software to track inventory levels in real-time. Just-in-Time Inventory: Adopt a just-in-time (JIT) inventory system to reduce holding costs. Supplier Relationships: Negotiate flexible terms with suppliers to accommodate fluctuating demand. Regular Audits: Conduct regular inventory audits to identify and address discrepancies early.