Inventory is an essential part of any business dealing with physical goods. The proper management of inventory is crucial for any business enterprise as it helps in curbing losses along with increasing the profits for the company. Excess or surplus inventory is a common problem faced by businesses all around the globe. But what are the major causes that lead to surplus stock in the warehouse?


From inadequate forecasting to poor purchasing decisions, there are many factors that contribute to the excess inventory in a company’s warehouse. There are different types of inventory that a business deals in throughout a single season which are based on the stages of production. These are some of the common types of inventory that a business possesses:


  • Warehouse efficiency :

    If you have an in-house production unit, then you might be well aware of the raw materials of your product. There are different kinds of raw materials that go into the making of a single product.

  • Finished Goods :

    The final product that a company deals in is known as the finished good for the business. Some businesses trade their products instead of manufacturing them. The raw material for one business could also be the finished product of another company.

  • Fragile products:

    Some of the inventory comes under the fragile category. Such fragile products need special care and attention from the storage stage to the dispatching stage. Special warehouse spaces are needed to be maintained to store these products till they reach the customer from the warehouse. This is an important part of inventory management.

  • In-transit goods:

    These are the dispatched goods that have left the warehouse but have not yet been delivered to their final customers. These are also valued by the company as long as they have not reached the premises of the customers and accepted by them.


These are the major types of inventory that a business has to deal with in a single cycle. Inventory management helps a company in maintaining these stocks and aids in eliminating surplus or excess inventory. Let us look at some of the strategies and secrets that could be fruitful for a business in inventory management.

Real-Time Analytics

Technology has opened many doors for businesses around the globe. Inventory management has been made more efficient through real-time analytics tools. These digital tools can be used by companies to maintain centralized data in relation to all kinds of inventories in the warehouse. These analytics can help in reducing the excess inventory in the business.

Monitor Suppliers

The technology could be very helpful but the human factor should also be managed to ensure better inventory management in the business. Suppliers play a crucial role in the supply chain and thus, as a business owner, it is important to keep an open eye while dealing with the suppliers. Essential key metrics should be used by the business to determine the credibility of the suppliers.

FIFO and LIFO:

There are various methods for better inventory management. FIFO (First In, First Out) and LIFO (Last In, First Out) are two basic tactics to manage inventory. You can use these methods according to the products in your warehouse.

Demand Forecasting

Many businesses fail to produce or procure inventory in accordance with the demand. This is why a huge stock of surplus inventory is left at their disposal. Demand forecasting is an essential step for better supply chain management and inventory management. It helps in eliminating excess inventory.

Inventory management is crucial for business. Excess inventory can be decreased by following such tactics or you can rely on B2B excess inventory liquidation companies like excess2sell. Excess2sell helps in selling off all kinds of excess inventories at a profitable price. The platform offers the service of liquidating excess inventory at a profit.