ALPHARETTA, Ga., May 06, 2025 — Deposco, a leading provider of end-to-end supply chain software solutions, today released exclusive data showing a dramatic 228% increase in Days of Inventory on Hand (DIOH) between February and April 2025, as companies race to stockpile goods ahead of the Trump administration’s sweeping tariffs set to take effect later this month.
The comprehensive analysis, based on actual WMS system transaction data rather than forecasts, provides a unique window into how businesses are responding to trade policy changes across multiple industry sectors.
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“This significant inventory build-up represents a strategic pivot by companies attempting to mitigate the impact of impending tariffs,” said Reid Bishop, Senior Director of Data Science at Deposco. “What’s particularly notable is the speed and scale of this adjustment. We saw weeks of inventory go up 60% with the pandemic and it has shot up well past 200% with companies front running tariffs.”
Key findings from tariff response analysis
- Warehousing Capacity Crunch: Brands and consumer packaged goods companies are rapidly filling available warehousing space to beat supply chain tariff deadlines, creating a nationwide capacity challenge.
- Profitability Paradox: Logistics providers face reduced revenue potential as warehouse space fills with static inventory rather than flowing through for fulfillment, where margins are highest.
- Industry-Specific Impacts: The statistics reveal significant variations in inventory strategy by sector, with consumer electronics, apparel, and home goods seeing the most aggressive stockpiling behaviors.
- Inventory Carrying Cost Explosion: Detailed analysis shows how storage costs, insurance, and financing expenses are dramatically increasing as a percentage of product value across nearly all categories.
Real transactions, not forecasts
Insights from Deposco’s Supply Chain Intelligence solutions represent actual commerce transactions, which make up approximately 1.2% of all U.S. Holiday Season ecommerce volume. This substantial market visibility provides statistically significant insights into broader supply chain behaviors.
During Black Friday and Cyber Monday 2024, the Deposco platform demonstrated exceptional growth compared to industry benchmarks, showing a 29% year-over-year increase in Gross Merchandise Value (GMV) compared to Adobe Analytics’ reported 7% growth. Order volume increased 26% compared to the previous year, underscoring Deposco’s growing importance in the ecommerce order fulfillment ecosystem.
The coming inventory whiplash
Deposco’s analysis suggests the current inventory surge represents only the first phase of a two-part market reaction to trade tariffs. The initial pre-buying surge is likely to be followed by a period of margin compression as carrying costs eat into profits, potentially forcing businesses to discount heavily to move excess inventory later in 2025.
“Companies are making a calculated bet that the added carrying costs of additional inventory will be offset by avoiding the tariffs,” added Bishop. “Our platform data shows that businesses with sophisticated AI and data-driven supply chain tools are better positioned to right-size inventory levels appropriately while maintaining service levels.”
Read our related report: “AI in Supply Chain: How Leaders Are Driving Breakthrough ROI”
About Deposco
Deposco’s supply chain software maps out your success, accelerates execution, and navigates your growth journey, driving unparalleled efficiency and cost savings. Our AI-powered platform delivers actionable insights across the entire supply chain—from supply chain planning to execution—adapting like a GPS to keep you on the optimal path. With the industry’s most extensive collection of pre-built integrations for rapid implementation, we help over 4,000 of the world’s fastest-growing retailers, 3PLs, DTC businesses, and brands navigate over 165 million consumer orders globally.
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