EXCESS INVENTORY WHAT WHY HOW INVENTORY TEAMS MEMBERS

EXCESS INVENTORY WHAT, WHY, HOW?

INVENTORY TEAM’S MEMBERS 1. Mai Thi Linh Ngan Logistics & Supply Chains Management National Economics University 2. Nguyen Thi Hai Yen International Business Foreign Trade University

Structure Definition What is excess inventory? Causes Why does it happen? Solutions How to deal it?

I. DEFINITION DO YOU HAVE EXCESS CLOTHES? A dress->buy despite unnecessity Then->put in closet without being taken off =>Excess clothes =>Excess Inventory

I. WHAT IS EXCESS INVENTORY? Excess inventory is a product that its quantity is over than customer’s need Excess inventory is a product that has not yet been sold and loses its price and value

II. CAUSES Why does excess inventory happen? Internal factors External factors

Internal factors Customer • Returns from customers Business • Bad predictions & decisions • Poor inventory management systems Suppliers • Unreliable supplier

According to 10 Ecommerce Trends, Returns hit $400 billion in 2017 up 53% since 2015

Business Bad predictions & decisions Poor inventory management systems $4, 3 millions of unsold clothes in 2018 Untracking obsolete items

EXTERNAL FACTORS Environment: Climate changes Natural disasters Diseases (Covid 19) Man-made incidents Policies (Trade war, . . . ) War

III. SOLUTIONS How to deal with excess inventory? v. External causes => accept, adapt and have suitable strategies In covid 19: -> develop website to sell products online

For internal causes v. Customer problem: ü Secondary markets => Receive and sell returns in cheaper prices ü Using AI and technology

v Business Problems: ü Forecast Accountability ü Using "pull model" instead of "push model"

v Supplier Problem ü Find and choose reliable suppliers & agree on price, location, time to receive goods ü Keep tracking and tracing your goods

Thank you for watching! From: Inventory team ^^