Dealer Operations
How to Prevent the "Aftermath" of Overstocking After the Holidays?
Overstocking is a double-edged sword; if you don't consider the distributor's perspective, it can cut you. Conversely, if you effectively manage the aftermath, it can help you carve a path in the market. Overstocking, also known as channel stuffing, involves pushing inventory far beyond normal sales into the market and various channel levels, especially primary commercial channels, typically at year-end or special periods. From a company's perspective, overstocking can boost sales, but it carries risks if not managed properly.
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