A key element of effective inventory management is knowing when and how to make exceptions to stocking rules, according to Jon Schreibfeder, president of Effective Inventory Management Inc. in The Difference Between ‘Stock’ & ‘Stuff’. But distributors need to be very careful when making those exceptions to make sure they aren't undermining the purpose of those rules.

One example of an exception that makes sense for most distributors is for products that are not profitable but are needed to sell other demonstrated profitable products. Schreibfeder says distributors need to maintain a balance. “Is the other product profitable enough to carry that dog along with it?” he says.

Seasonal items are also a logical exception to stocking rules around frequency of activity, but he says distributors should be careful not to overbuy. “Make sure that whatever quantity you buy is not going to exceed your projected needs through the rest or remainder of the popular season,” Schreibfeder says.