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Overstocking's Pros and Downsides

Overstocking's Pros and Downsides

For your production practice to run effectively, you'll need the right type and quantity of goods. Overstocking is a common practice to ensure that you have enough inventory and don't run out of critical material supplies. While this may appear to be a decent decision at first glance, if you investigate more, you will discover that it is not.

Here are some of the reasons for this:

Thousands of dollars can be lost by overstocking

Of course, you'll have to spend tens of thousands of dollars on material supplies. However, overstocking supplies can result in large amounts of waste, which can be quite costly. Unless you have a very excellent inventory system, it's likely that you won't detect or keep track of the shelf-lives of all your dated materials.

Overstocking can take up a lot of room in your warehouse

Another problem of overstocking is that it takes up a lot of space in your warehouse or stock room. A crowded environment can cause you tension, which can hinder your performance. 

It can also change the look and feel of your warehouse by obstructing adequate air circulation and blocking light, making it appear and feel uninviting and less conducive to working.

Overstocking can lead to a mess

When you stock too much inventory, one of the worst things that may happen is that your material supplies go out of date. When it comes to inventory, a warehouse may or may not use a code bar system. 

If you don't keep track of your inventory in a methodical and structured manner, you'll get lost in the shuffle. Not only can clutter cause you a headache, but it will also make it difficult for you to find or locate the resources you require for particular material processes.

Advantages of Overstocking

However, there are certain advantages to overstocking. Purchasing material supplies in bulk might help you save money and receive better offers. 

It may also enable you to save a few dollars on shipping. Having enough inventory ensures that you have enough supplies to keep your manufacturing running smoothly and efficiently.

It also reduces the need for and frequency of purchasing and receiving supplies, resulting in fewer interruptions to your routine workflow. This frees you up to focus on your day-to-day operations.

The need of proper inventory management and control is sometimes ignored. Many dentists only address inventory control issues when they begin to significantly deplete cash flow. 

You must assign someone from your team to take control of the inventory and to regularly monitor your stock in order to use all of the materials in your stock room without difficulties. 

It's also critical to have a strategy for inventory control and management that is systematic, efficient, and successful.

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