Overstock and overproduction
Overstock arises when more stock is available than can be sold through the normal sales plan. Causes may include revised forecasts, minimum production quantities, cancelled orders, falling demand or overly broad purchasing or production plans.
Even new, current and fully resale-ready products can tie up capital and warehouse space unnecessarily when stored for a long time. Stock & Trade therefore assesses both temporary surpluses and larger lots from structural overproduction.
We consider the product group, quantities, stock value, age, packaging, location and any resale conditions, among other factors. Where direct purchase is feasible, we make clear arrangements concerning price, payment, transfer, onward sale and any collection and transport of the goods purchased.
Current products can also become overstock when quantities and sales no longer match.