How to Properly Manage Excess Inventory With Inventory Management Solutions
Manage excess inventory with an inventory management process.
Having the right inventory management solutions in place helps you track your inventory in real-time, and hence streamline the process. If properly managed, your business will minimize excess inventory costs and maximize profits. A sound inventory management system offers several benefits, including:
Making it easy to forecast demand
Reducing cost and improving cash flow hence improving your overall business performance
Allowing inventory tracking across multiple locations
Making it possible to do inventory analysis from any device
Preventing excess stock and raw materials
By understanding the challenges that lead to excess and obsolete inventory, you’ll be able to implement solutions to handle the problem. Some common inventory management problems include:
Poor customer service- in addition to offering quality products and at a fair price, you also need to answer customer queries on demand. If you don’t have full inventory information, you’ll have a hard time answering questions on product availability or filling orders.
Overselling- failure to have total visibility of your supply chain and reliable access to shared data can mess your demand patterns. One such problem is discovering that you’re out of stock and, therefore, can’t meet the needs of your customers. This problem mostly occurs due to miscommunication, inferior inventory tracking methods, and lack of useful analytics.
Strategies to Deal with Excess Inventory
Putting an effective inventory management system in place helps you remain competitive by eliminating any risk of losing business to your rivals. With such a system in place, you’re able to handle excess inventory, meet the needs of your customers, improve staff performance, and increase your sales. Here are excess inventory solutions to implement:
Assign Someone the Responsibility of Overseeing the Inventory
Having someone responsible and accountable for your inventory improves your overall inventory performance. Among other things, the person in charge should deal with:
Identifying slow-moving products
With the help of your stock controller, you’re able to identify and address issues as they arise, hence streamlining your warehouse.
Practice Quality Control
As part of optimizing your warehouse, ask your employees to examine the quality of your products, and confirm that they are all performing as they should. During the stock audit process, create a checklist of the damaged goods and confirm that the products are correctly labeled. If you learn that you have old stock, you can get rid of it by:
Asking re sellers in your area to sell it
Seek advice from fellow manufacturers about how they handle excess inventory
Hire a professional consultant to help you figure out how to deal with the old stock
Managing old inventory frees up space in your warehouse and makes it easy to collect information on how to use the free space. You can eliminate the problem of old stock for good by tracking your product inventory in real-time.
Trade with Industry Partners
Although you want to remain competitive in the industry, there comes a time when it’s wise to partner with your competitors to move surplus inventory. Such a case occurs when your rival needs an item you have in your warehouse. In return, they may have something that you need, in which case partnering benefits both of you.
Determine the Cause of Excess Inventory
Scrutinize your supply chain process to determine why you ended up with excess stock. Are you experiencing production bottlenecks? Are you dealing with an unreliable supplier? Do you have a weak inventory management system that makes you order goods in excess? The answers to these questions will help you get to the root cause of your problems and hence, implement the feasible excess inventory solutions.
It’s Time to Cut Your Excess Inventory Losses
Do you have excess and obsolete electronic components inventory but don’t know how to get rid of it? At Broadline Components, we offer surplus inventory management solutions to help you cut losses and increase your revenue through our cost down program.
As part of our commitment to quality, we have put in place quality policy that aims at protecting your supply chain and ensuring its continuous improvement. Contact us today and experience the Broadline difference.