Category: Supply chain

Managing inventory is arguably the hardest task of any retail brand. That is especially true for e-commerce, where sales, advertising, payments and even the customers are digital and can be managed with the click of a button, while inventory is still physical and needs real-world interactions to be produced, moved and stored. 

In the cutthroat game of e-commerce, it’s all about keeping costs down and margins up.

If you’re left with too many units and no way to move them, you could be experiencing one of the worst (yet most common) problems for modern commerce brands: dead stock.

An estimated 46% of stock losses come from human error, with US retailers having roughly $1.43 stuck in stock for every $1 sale they make.

But what exactly is dead stock? And why is it important to avoid it? In this article, we’ll share tips to help you clear your obsolete inventory and improve your demand forecasting systems to maintain the right inventory levels moving forward.

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As of late 2023, many large retailers are still struggling to balance their inventory levels. Merchants and supply chain leaders are fighting to reduce inventory glut and protect margins as carrying costs increase.

But finding the right balance between your sales and inventory is a tall order. To keep overhead low and profit margins high, understanding your inventory is crucial.

Here are some of the top metrics leading brands use to track inventory, plus tips for how and when to apply them for better sales, profitability, and cash flow management. 👇

“We demanded the best contract in the history of UPS, and we got it.” Those are the words of Teamsters General President Sean M. O’Brien in a recent release announcing the historic UPS contract agreement.

Before Covid-19 upended society, the direct-to-consumer (DTC) market was experiencing a period of significant momentum. The number of brands launching in the space multiplied daily, as the lucrativeness of high-profit margins inspired new entrants. Interest from consumers was at an all-time high as they sought to take advantage of better pricing and product quality. 

In 2020 as the COVID-19 pandemic gained momentum, direct-to-consumer (DTC) brands experienced incredible growth. In fact, sales across DTC brands in the US saw a 45.5% growth increase. At face value, that may sound like a beautiful thing. But ongoing challenges with the supply chain meant that many brands struggled to deliver on that demand.

Would you hop in your car to drive somewhere if you knew you had less than 65% chance of arriving where you intended to go? When you operate your business without end-to-end supply chain visibility, that’s what you’re doing with your inventory. 

Have you ever tried to navigate the hallways of your home without turning the lights on? No matter how well you know the layout of your house, when you can’t see where you’re going, you may feel like you’re stumbling around, lost and confused. 

It’s human nature to want to control outcomes and reduce risks.