Why “3 for 2” isn’t always a good deal

When good deals become bad decisions: How to avoid excess inventory

Excess inventory rarely stems from bad intentions; it usually starts with an offer that seems too good to pass up. In this article, we unpack why “3 for 2” offers can become costly mistakes and how you can use better decision-making to avoid excess inventory without missing out on valid offers.

Let’s set the scene:

You need one carton of milk, which is all your fridge has space for, but when you get to the store, there’s a “3 for 2” promotion, so it makes sense to buy three. Right?

Back home, there’s no room in the fridge. You drink more milk than usual to avoid the milk going off, but you can’t use three cartons’ worth – you don’t have enough cookies. (That’s a different story.) You throw the excess milk away and realise it was a waste of money. Who said you shouldn’t cry over spilt milk?

This might be a simple example, but it mirrors a common business trap: letting price dictate purchases instead of real need and demand.

When price drives purchases: The road to excess inventory

It’s surprisingly easy to fall into the same pattern at work. Instead of squeezing a couple of extra milk cartons into your fridge, you could struggle to get thousands of slow-moving, low-demand units into your warehouse because of an offer.

For inventory-carrying businesses, the consequences of a “good deal” can be significant and cost more in the long run:

• Excess inventory builds up. Slow-moving stock ties up capital that could be invested in other priorities.
• Storage space fills with low-priority items, squeezing out high-demand goods.
• Risk of obsolescence increases as demand doesn’t match supply, especially if demand shifts.
• Handling costs rise — internally and with suppliers.

All from chasing a discount.

The solution? Better decision-making to avoid excess inventory

Bulk discounts aren’t always bad. You just need to ensure you take advantage of the right campaigns and supplier offers. To avoid excess inventory, decisions must be based on data, not gut feeling or short-term temptation.

The key to smart purchasing means understanding:

• Current demand and forecasted sales
• Minimum order quantity (MOQ) requirements and container optimisation opportunities
• Inventory turnover
• Inventory levels, stockholding capacity, and costs.

Analysing historical sales, seasonal trends, market movements, and customer behaviour provides a clearer picture of what will actually sell and when. This helps meet supplier MOQs without ordering more than needed to reach the threshold.

Engaging the right tools to manage your inventory and provide accurate demand forecasts and comprehensive insights allows you to tell the difference between a smart deal and a shelf-filler. You get a good deal and meet supplier requirements without overstocking.

Meet MOQ requirements without overstocking, thanks to Order Fill-Up

When meeting MOQ requirements or filling shipping containers, adding any items to the order is easy, even if you don’t need them.

Filling shipping containers with the wrong products leads to excess stock, while shipping half-empty containers is costly space. You need to maximise container capacity, ensuring every item inside has upcoming demand to protect your margins.

EazyStock’s order fill-up functionality makes the process data-driven and simple. EazyStock recommends which items to add based on replenishment needs, demand forecasts, seasonality, and planned campaigns. It also suggests complementary items from the same supplier, so you stay efficient and compliant.

This means you can:

• Reduce freight cost per unit and container tariffs.
• Lower your carbon footprint with fewer shipments.
• Meet MOQ targets while avoiding adding excess stock.

Strong supplier relationships = smarter deals

A solid supplier relationship gives you more than just better pricing. It leads to better access to information, more flexibility, and collaboration opportunities, which is critical when managing MOQs, long lead times, or unexpected disruptions.

Working towards shared goals makes finding win-win solutions easier. You could see volume discounts that make sense, improved payment terms, or more agile delivery options.

Balancing a good deal with the right inventory levels

Balancing demand with inventory cost is a daily challenge for supply chain professionals. That becomes more challenging during high inflation, rising interest rates, and increasing fuel, energy, and materials costs.

However, with the right strategy, it’s not impossible.

Inventory optimisation maintains high service levels by stocking the right products, not just more products. It is a smarter way to reduce inventory costs without sacrificing service levels or placing unnecessary orders.

By optimising MOQ handling, demand forecasting, and order fill-up, you can reduce excess inventory, streamline purchasing, and improve inventory performance without compromising service or flexibility.

EazyStock helps businesses move away from gut-feel purchases and short-term promotions toward data-driven decisions. Through automated demand forecasting, smart replenishment, and optimised orders, you’ll gain control over:

• Which items need replenishing
• When to place an order
• How much to buy — and the impact of buying more

It’s not about saying “no” to every offer; it’s about understanding if it adds value or more unneeded, excess stock to your warehouse. You can then decide if it’s a good deal or if you’re pouring more milk down the drain.

Want to see how much you could save with smarter purchasing? Get in touch – we’d be happy to show you how EazyStock works in practice.