Chapter 8
How Technology Enabled Resolution of Supply Demand Mismatches
Imagine a scenario in which you just launched a new product, but your competitor announces an even better technology and goes to market aggressively. Well, you may be holding millions of dollars of inventory that loses value with every breath. A common benchmark in the industry is an 8% price erosion per month. Hence, if a company process deals with obsolescence once every 6 months, it will lose close to 50% of its inventory value. It is clear that a well-thought-out strategy for inventory disposition is vitally important. In this chapter, we will discuss FreeFlow—a company that provides a service to dispose of unwanted inventory effectively. ...
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