Tuesday, 7 May 2013

Communication is Key to Avoiding Excess Inventory

In a recent article discussing excess inventory within the electrical sector, Bridget McCrea speaks to several industry experts and explains ways in which excess inventory can be kept to a minimum.

Her findings explain how having surplus inventory is something that companies really need to keep an eye on, as this can increase overheads and idle stock costs companies money. One of the easiest ways to manage surplus inventory is to ward it off all together. By ensuring solid communication with customers and vendors and with well-honed inventory procurement processes. Talk to customers about their procurement plans for the coming year, this can help with your own inventory strategy and avoid overstock.

Another tip is to pick up on key buyer trends, for example, if a new type of product is proving popular within the industry. This will ensure that you're not stocking up on 'older' versions of products.

Even though you may try your hardest to avoid excess stock, sometimes it is unavoidable. If the inventory is taking up physical space and/or tying up money that could be used to invest elsewhere, you need to find a way of getting rid of it quickly so the space and money can be put to better use. Besides the cost of capital, it is estimated that the cost of holding obsolete inventory can run as high as 3% per month

Selling the goods is a wise option, markets that you don't typically serve or other distributors and online buyers are all good selling targets.

The electrical sector is not dissimilar to the electronics industry and here at Trading Specialists we specialise in solving excess, obsolete, EOL and slow moving electronic components inventory problems.

We have various selling options available and your stock will be relocated to our purpose built warehouse, for which we cover the transport costs. One option could include the ability for you to retain full title over the stock until it is sold, meaning you can use any unsold goods at any time.

If you would like to send us your excess stock lists for a quick assessment and response, then please email us or visit our website for more information

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