What are the reasons for the high inventory of enterprises?

The main reason for the high inventory of enterprises is that there are some problems in mainstream sales, which leads to the accumulation of goods and there is no way to sell them well.

The reason for the high inventory of the enterprise may be that there is a problem in the sales department, and it is necessary to strengthen the training of talents at this time. It is also possible that there was an error in external contact.

It may be because the sales channel has been hit, or the fluctuation of the market, resulting in the inventory of goods can not be sold, in fact, there are many reasons for the high inventory of these enterprises.

The reason for the high inventory of enterprises may be due to the high inventory, and there is also the reason for the backlog, and some measures should be taken at this time, so that this situation can be changed.

The first is that the presets and plans in the early stage are not done well, and the configuration and requirements of the company's channels are overestimated. There may be problems in some aspects of the sales process, or the market is sluggish.

First of all, it may be that the product quality is not up to par, there is no good quality, consumers will naturally not buy, and secondly, there is no market development, the popularity is not high, and consumers do not know the existence of the product.

As a result, the inventory of the enterprise remains high, basically there is a problem with the sales of a department, but sales is a problem on the one hand, which also shows that there are certain problems in the production and production process of this product.

It may be because the planning of the enterprise is not quite in line with the planning of today's market, and it has caused a conflict with the current market economy, so it will cause the appearance of the enterprise library to remain high.

This kind of thing must be that some salesmen of the company are not doing their jobs well, and then they can't sell some of their own things, so it will lead to this.

The reason why the enterprise library has been retained is definitely because it does not conform to the market economy, or does not meet the consumer's view of consumption, and I suggest that enterprises should carry out some methods in this regard.

Hello dear, there can be a variety of reasons for high inventory, here are some of the common ones: Inaccurate sales: If a business's sales are inaccurate, it can lead to overstocking.

If the sales ** is underestimated or the market demand for shirts is underestimated, the company may purchase too many materials, resulting in an overstock. And if sales** overestimate market demand, companies may produce too much product, resulting in inventory accumulation. Unreasonable production schedule:

If the production schedule is not reasonable, including too many production quantities or too long production cycles, it can lead to high inventory. Too much production will increase inventory levels, while too long a production cycle will cause a mismatch between the production cycle and the sales cycle, resulting in an overstocked inventory. **Chain Delay:

If the items in the chain are not in time, it can lead to production stalling or delays, which can increase inventory levels. Delays in delivery, transportation issues, or shortages of materials can all lead to chain delays. Lack of requirements coordination and **:

If there is a lack of effective communication and coordination between the business and the sales team, marketing team, etc., it can lead to excessive inventory. Demand** and sales plans should be in close collaboration with various departments to ensure proper production and procurement. Seasonal demand fluctuations:

Sales of certain products can be affected by seasonal fluctuations, which can result in excessive inventory if the business does not respond to these fluctuations reasonably** and efficiently. For example, when demand for certain seasonal products drops during the off-season, inventory can be overstocked if it is not adjusted accordingly. Sales Channel Issues:

If there is a problem with a company's sales channel, such as a sales channel that expands too quickly or a sales partner does not have enough sales capacity, it can lead to an overstocked inventory. Sales channel issues can affect the speed at which products can be sold at reunions, resulting in inventory accumulation. Purchases** and bulk purchases:

Businesses may make bulk purchases in order to enjoy purchases** or to make more profitable purchases**, resulting in high inventories. If businesses are unable to sell these bulk purchases of materials or products in a timely manner, inventory levels will increase.

Not necessarily. Reducing inventory leads to an increase in profits, and there are conditions. Namely:

The company's inventory exceeds the inventory of maintaining normal production and operation, and the amount of safety stock is too much. If the company has too much inventory, it will increase the cost of warehouse management (personnel salary, warehouse occupation, capital occupation, etc.), and will increase the possibility of inventory theft, damage, and deterioration, so it is not good for the enterprise. However, if the inventory is too low and affects production, the downtime cost is even more immeasurable.

For example, there must be a certain amount of inventory of emergency rescue drugs in hospitals. Whether the increase in inventory can obtain the result of increasing profits can be determined after calculation based on the company's past situation and current sales and production status.

Many probabilistic risks are difficult to avoid.

Businesses hold inventory for the following reasons:1. Meet the needs of customers who change with time and season.

2. Solve the problems of errors, shortages and out-of-stocks.

3. It helps to balance production activities, stabilize employment and improve labor relations.

4. Maintain the continuity of operation to ensure that the entire system will not be interrupted when a failure occurs.

5. It is convenient for the production of different products on the same production equipment.

6. Provide an economical batch and volume discount material acquisition and sorting method.

7. Provide a kind of hedging against future and delivery uncertainties, such as strikes, escalations and inflation.

Practice has proved that inventory is not innate, it is gradually formed. So, how exactly did it come to be? This article points out that with the development of the enterprise's business, the management level has not kept up, specifically there are several types of direct reasons.

1.Inventory is generated because of inaccuracy.

This is a problem that most enterprises have, for example, we recently helped a high-end brand of smart locks sort out the process, and found that their inventory level is relatively high, the main reason is that the sales are not accurate, resulting in the PMC department to prepare the library beam to accompany the storage can not be consumed quickly, the inventory level is getting higher and higher, but the company controls the cost, so the two departments will often miscommunicate. This situation will be encountered in many assembly enterprises, do you also have it?

2.Inventory is created by scheduling too early than demand.

What do you mean? It's that the customer needs to ship the goods in three days, but we've made it now, and that's the inventory generated by premature production. Needless to say, almost all businesses have this problem, why?

Because we are worried that there will be abnormalities in the process, such as process equipment failure, mountain beam quality problems, insufficient personnel and other abnormal situations, we will produce them in advance to avoid the inventory generated by passivity during delivery.

3.Inventory is generated by slag transportation due to mass production.

This is easy to understand, because many companies do not implement a single piece flow, but use mass production, so there will be a large number of semi-finished products in the process. For example, according to mass production, 100 pieces for a batch, then they are likely to have 100 pieces of semi-finished products in stock in each process of the process, and at the same time, the inventory of raw materials will also increase, obviously the process is not lean.

4.Inventory is generated due to different working hours.

This is caused by the imbalance of process capacity, for example, heat treatment is three shifts (considering that the line cannot be stopped), and the assembly operation is only one shift, so there will inevitably be a large number of semi-finished products squeezed before assembly, resulting in inventory waste.

Benefits of Business Inventory:

1. Maintain the stability of sales products.

Sales** enterprises (MTS method, see the main production plan section) must maintain a certain amount of inventory for the final sales products, and its purpose is to cope with the sales changes in the market. In this way, the enterprise does not know in advance what the market really needs, but only produces the market demand, so it is necessary to produce a certain amount of inventory.

2. Maintain the stability of production.

The enterprise arranges the production plan according to the sales order and the sales ** (refer to the production part of the master plan), formulates the purchase plan, and issues the purchase order. Since the purchased items require a certain lead time, this lead time is based on statistical data or under the premise of stable production of ** merchants, but there are certain risks.

3. Balance enterprise logistics.

Inventory plays an important balancing role in the logistics of purchasing materials, production materials, work-in-progress and sales items. The purchased materials will be coordinated according to the inventory capacity (capital occupation, etc.), and the receipt and warehousing of incoming materials will be coordinated.

Disadvantages of Enterprise Inventory:

1. Occupy a large amount of enterprise capital.

2. It increases the product cost and management cost of the enterprise. The increase in the cost of inventory materials directly increases the cost of products, and the increase in related inventory equipment and management personnel also increases the management cost of the enterprise.

3. It covers up many management problems of the enterprise, such as poor planning, unfavorable procurement, unbalanced production, unstable product quality and poor market sales. To use a more figurative metaphor, it is as if the high sea level hides the reefs under the sea, but if the sea recedes, these reefs are exposed, which is easy to cause a reef accident.