What can be a consequence of poor inventory management in a fulfillment center?

The consequence of poor inventory management in a fulfillment center is primarily reflected in stockouts and excess inventory. When inventory levels are not accurately tracked or managed, it can lead to situations where items are either unavailable when customers want them (stockouts) or there is too much inventory that does not sell (excess inventory). Stockouts can result in lost sales opportunities, diminished customer satisfaction, and potential long-term damage to customer loyalty. On the other hand, excess inventory can tie up critical capital and resources, increase storage costs, and lead to waste if products become obsolete or expire.

Effective inventory management is crucial for maintaining optimal stock levels, ensuring that products are available when needed, and avoiding the pitfalls associated with overstocking or understocking. This highlights the crucial role of inventory management in the overall operational efficiency of a fulfillment center.