Date Added: Jan 2011
The overcrowded distribution center is as common today as it was 25 years ago. Sales increase and more space is required. Promotional campaigns are tried and fail. Slow or non-moving products begin to cut into productive space. These need to be sold at discount, or donated to groups that will provide a tax deduction. There will be an accounting hit as value of inventory is reduced, but the loss can be justified by considering the real cost of storing and moving obsolete stock. Additionally, profit opportunities may have been postponed for lack of space, actually reducing return on investment.