Are you familiar with the term "overrun" in print production and packaging? It refers to the extra products or goods produced beyond what is requested by the client. Overrun can be both a blessing and a curse, depending on how it is managed. In this post, we will explore Overrun and its importance in Print Production, Packaging, Inventory Management, Logistics, and Affiliate Marketing.
Overrun is described as the extra products or goods produced beyond what was ordered by a client. In most cases, it occurs due to the manufacturer's mistake or the client's revised order without notifying the manufacturer.
Overrun happens mainly because manufacturers need to be efficient while running their machines. Producing small quantities can be costly both in terms of time and resources. They often anticipate high demand from clients or are operating on assumptions that may not always be accurate hence resulting in overproduction.
The main risk of overrun is that it can create a surplus of inventory that wasn't planned for, which can result in additional expenses for storage and handling. When left unmanaged, overruns can lead to obsolescence which affects brand consistency - this can lead to brand devaluation. At times when overrun levels are high enough they impact machinery with preventable wear & tear.
One benefit of overrun is that it ensures backup stock for unexpected or sudden changes in demands such as unanticipated events like pandemics or cyber breaches that could prevent orders from being fulfilled promptly. Additionally as inventory cost tends to reduce volume increases (economies of scale) due to better costs which help pass savings onto consumers providing pricing incentives.
Handling overrun effectively requires a few steps:
Proactive machine maintenance aimed at reducing production downtimes when excessive 'overruns' occur also benefits productivity planning further down the line.
By working with affiliate marketers who have access to untapped target markets outside any given supply chain, manufacturers can proactively manage overruns via a strategic sales approach characterized by target customer identification consisting of buying volumes/ recurring demand schedules.
In conclusion, managing overrun is essential for both manufacturers' bottom-line and maintaining brand consistency. Besides planning production times accurately communicating with clients along their changing needs alongside adopting proactive measures such as proactive maintenance - affiliate marketing provides one way manufacturers proactively manage surplus inventory through resale means via reselling coordination efforts reaching untapped market segments & minimizing stock obsolescence risks.
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