What are inventory issues, talk mostly about the bad aspect like excess inventory and wastage. (Do not spend time introducing the company only speak on the issue)
- High SKU count and variability in demand
The organization often holds excess inventory stemming from poor demand and supply predictions. - Having too much stock reduces Sephora’s available cash flow and profits, which increases the financial burden. Holding excess inventory will decrease
Sephora’s flexibility in addressing changes in the market. - Excess inventory results in increased resource and energy waste, negatively impacting the environment.
- Additionally, holding excess inventory leads to significant costs stemming from missed sales when customers do not find the products they need and
storage costs.