Overstocking occurs when a business holds more inventory than is needed to meet current or projected demand. While it may seem like a safeguard against stockouts, overstocking increases carrying costs, ties up working capital, and elevates the risk of obsolescence or spoilage.Inventory optimization tools help prevent overstocking by leveraging real-time demand data, historical trends, and predictive analytics. Maintaining the right balance between availability and efficiency is key to reducing waste and maximizing inventory return on investment.
