6 Ways To Deal With Excess Inventory
Excess inventory is inevitable for any business. Be it for the reason of unpredicted supply chain disruptions or overly optimistic forecasting, excess inventory is a serious problem that can negatively affect business operations and profitability. One of the ways to keep inventory under control is to use custom inventory management software. But are there other ways to manage inventory overstock and solve the challenges related to it? In this blog, we will review some of them.
How to deal with excess inventory?
Return for refund or credit
Some suppliers may accept excess inventory back for a full refund or a credit. You might have to pay shipping and handling costs but most of the time this is the best option you can walk away with.
Putting a deal on items that have been stuck in your inventory for too long is another way to let go of your inventory. Even if the items are way out of trend, there may still be customers willing to pay a discounted price to buy them.
Finding a liquidator who can buy out your stock of excess items is another way to dispose of your inventory. You might have to let go of the items at a ridiculously low price. However, most of the time, this is better than not having space to stock your inventory with new products.
Depending on the types of products you sell, totally obsolete items can be sold for materials (like metal or cloth) they contain to scrap dealers.
Recycling works similar to scrapping and will apply to you if the items you have in excess are made of recyclable materials like metal, plastic or cloth. The City of Toronto and cities in the GTA area have their own recycling programs which allows residents to recycle a wide range of items.
Donating items is another way to dispose of excess inventory. Not only does it provide an avenue for removing excess inventory, but also a reduction in your taxable income.
When dealing with excess inventory, regardless of how you ended up disposing of it, it is important to track all transactions in the custom inventory management software so you can make more informed inventory re-stocking decisions.
For more tips on how to manage excess inventory, reach out to us at Vestra Inet. A leader in the custom software development market, we can build software that will help you run your inventory management operations efficiently and cost-effectively. Give us a call today.