What are inventory issues, talk mostly about the bad aspect like excess inventory and wastage.
1. High SKU count and variability in demand
The organization often holds excess inventory stemming from poor demand and supply predictions.
2. Having too much stock reduces Sephora’s available cash flow and profits, which increases the financial burden. Holding excess inventory will decrease Sephora’s flexibility in addressing changes in the market.
3. Excess inventory results in increased resource and energy waste, negatively impacting the environment.
4. Additionally, holding excess inventory leads to significant costs stemming from missed sales when customers do not find the products they need and storage costs.
