Chapter 4

Inventory Management Challenges

One of the challenges in today’s times is understanding your customer’s needs and making well-informed decisions by tracking and managing your inventory. Several problems arise while managing inventory, and here are some of the commonly found challenges in inventory management.




Our guide not only sets out to explain these challenges but also provides practical solutions to overcome the inventory management challenges. Knowing them will help you to understand how to avoid them in your business.



1.  Inventory Shrinkage


Inventory shrinkage is a phenomenon where there is less inventory available due to unforeseen circumstances such as theft, damaged products, or expired products.


This is one of the biggest problems that a supply chain manager has to deal with and since this kind of shortage in inventory is caused by unknown factors. However, inventory shrinkage can be avoided by following a few simple steps discussed in the article.


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2.  Deadstock


If you’ve been into a retail business, you must have faced the issue of having a pile of inventory that never gets sold. This unsold inventory lying with you for a longer period of time without any near future chances of getting sold is called headstock.


Deadstock is a burning problem for not just small businesses but also big giants like H&M. Thankfully, there are ways to get rid of such stock and they are discussed in our essential guide here.


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3.  Out-of-stock inventory


One of the worst nightmares for any retailer is being out of stock of a particular inventory especially when it is in great demand. Being out of stock at the time when the product is in great demand means loss of revenue earning for the company and also decreasing the credibility of your company.


We have spilled some beans in our guide here on how to avoid getting your inventory out of stock.


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Chapter 3
Inventory Management Processes
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Chapter 5
Inventory Management Best Practices