Save Your Margins Through Inventory Optimization

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Inventory management is a crucial part of any brand’s operations, as it can make or break their profitability and sustainability. When a brand has too much inventory, it can weaken their margins. But when inventory is optimized, so are profits – making inventory management critical to a brand’s success. 

The consequences of carrying too much inventory can be severe. It can lead to increased storage costs, limited cash flow, and decreased profitability. Excess inventory can also lead to decreased customer satisfaction, as customers may be less likely to purchase products that have been sitting on shelves for too long. Brands that are carrying too much inventory need to take steps to reduce their inventory levels to improve their financial health and sustainability. By implementing measures such as improving their supply chain and reducing the number of products they produce, brands can optimize their inventory levels and improve their profitability.

Popular brands like Nike, UGG, Under Armour, Crocs, and Skechers have all battled excess inventory problems over the past few years. After the inventory shortages during the pandemic, the market became flush with inventory once the supply caught back up. This led to shoes sitting on shelves, heavy discounting, and eroding margins. Ultimately, the excess inventory was hurting the brands and their retailers, and forced brands to reconsider their approach to managing inventory. To combat this dilemma, these brands adopted new game plans like improving supply chain management and reducing the number of products they produce. These strategies have allowed them to stay profitable and overcome the financial challenge that excess inventory presents.

Competition is at an all time high, and brands need to adopt the latest technologies and strategies to stay competitive in their industry. One such strategy is utilizing a software solution like Fitted. Fitted helps brands that are over-inventoried by helping them sell more of their product to the right retailers at full price. Rather than having to explore off-price solutions to navigate an inventory overload, Fitted allows brands to see their nationwide inventory availability and demand for their products. This real-time data is fully actionable and helps brands sell more full-price products to their best retailers.

Inventory management is a critical aspect of any brand’s operations. Brands that struggle with excess inventory face significant challenges that can lead to increased storage costs, decreased cash flow, and less profitability. However, brands can perfect their inventory levels and improve their financial health, by improving their supply chain, reducing the number of products they produce, or utilizing software solutions to maintain margins.



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