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SMBs Trapped in Supply Chain Squeeze as Inventory Woes Mount

Small and mid-sized shippers are operating under relentless pressure as they battle mounting inventory challenges and fractured supply chains, according to a new benchmark report. SMBs are turning over stock four times annually, deploying aggressive clearance tactics including sales promotions, liquidation, and inter-warehouse transfers. Seventy-seven percent rely on promotional sales, while 39% have resorted to liquidation. Half of firms now employ at least two of these strategies, up from 38% two years ago. Despite these efforts, dead stock has become a critical problem. Twenty-four percent of SMBs now carry inventory that cannot be sold, double the 12% figure from 2024. The situation worsens as supply chains grow more complex. Multi-region sourcing among SMBs jumped to 55% from 45%, straining planning capabilities. Nearly a quarter simultaneously struggle with inadequate fill rates and sluggish stock turns.