Excess inventory can be a huge time and money sink for companies. Unfortunately, it is also an issue that is more or less unavoidable. In this interview, we speak with David Farmer of Fortna to discuss inventory solutions and how logistics professionals can make the most out of unmovable stock that is taking up valuable space.
Why is excess inventory such a problem?
Most businesses understand that holding excess inventory is a problem, but just how much can it cost you? Storage costs, insurance, spoilage, taxes and obsolescence all add up quickly. Excess inventory cost estimates from around the industry range from 25%-32%.
Amazon and immediacy
The global superpower that is Amazon is imposing its will on the shipping and logistics industry. David Farmer dives into the havoc that the “I Want It Now” culture is wreaking on small and medium-sized businesses – and how they are dealing with it.
Lessons from a major merger
When O’Reilly Auto parts made the largest acquisition in company history, they hired Farmer’s company, Fortna to streamline and optimize their new, much larger, distribution network. This came with a number of challenges, all with the added pressure of a two-year window.