.png)
Non-Stock Inventory refers to products or items that are not regularly kept on hand in a warehouse or retail location but are instead ordered only when needed or in response to specific customer demand.
Non-Stock Inventory typically includes items that are less frequently sold or have unpredictable demand. These items are not part of the core inventory that is readily available for sale or distribution. Businesses often manage non-stock inventory by placing orders only when a customer request is made, making it an essential part of lean inventory management strategies.
Non-Stock Inventory works by being ordered on-demand, based on specific customer orders or sales projections. It eliminates the need to store products that are infrequently sold, which can save valuable warehouse space and reduce holding costs.
By relying on suppliers to deliver non-stock items as needed, businesses can maintain a leaner inventory system, which helps to optimize operational costs and improve cash flow. This method of inventory management is particularly beneficial for businesses with a wide range of products, allowing them to offer diverse selections without overinvesting in stock that may not sell quickly.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Non-Stock Inventory plays a key role in reducing storage costs, as businesses don’t need to keep excess stock on hand. By maintaining non-stock items, companies avoid overstocking, minimize waste, and improve cash flow. It helps businesses only acquire products when absolutely necessary, ensuring they don’t tie up unnecessary capital in inventory.
For example, in 3PL logistics, non-stock inventory management allows businesses to focus warehouse space on high-demand products. When a specific customer order is received, the non-stock inventory can be sourced quickly, ensuring that it arrives just in time for fulfillment without overburdening the warehouse or logistics team.
