The report reveals that while SMBs have reduced overall inventory levels by 9% year-over-year, nearly 80% continue to grapple with overstock issues due to inadequate forward planning. The report also highlights the challenges of long lead times and lead time variability, with 58% of SMBs citing long lead times as a significant challenge.
Shift Towards Domestic Suppliers and Financing Excess Stock
American SMBs are increasingly favoring domestic suppliers over offshore ones, with only 25% of U.S. respondents preferring offshore suppliers. The report also reveals that 54% of SMBs with more than 20% excess inventory rely on inventory financing, indicating that access to financing may influence an SMB’s willingness to carry excess stock.
AI Adoption: An Untapped Opportunity
Despite the hype around artificial intelligence (AI), only 23% of SMBs have invested in AI, with concerns about data integrity or security risks and inconsistent or inaccurate outputs acting as barriers to adoption. However, AI presents an untapped opportunity for SMBs to leverage AI-based insights for quicker thinking and more strategic action.
Netstock’s Inventory Management 2024 Benchmark Report offers critical insights on global trends, challenges, and paths to optimization for inventory management. With over 15 years of experience in supply and demand planning software, Netstock continues to empower SMBs worldwide to navigate the complexities of supply chain management and gain a competitive edge in an increasingly dynamic global market.
