Some companies can reduce inventory levels down by up to 30% by simply improving their forecasting methods and replenishment practices. A bad relationship with a supplier can also cause them not to make your needs a priority. You can get return authorization for substitutions more easily than you can for merchandise you’ve ordered.

A secure connection for the Retail Industry. To control surplus inventory, it is necessary to monitor their dynamics.

©copyright 1999-2019, The Retail Owners Institute®. Though some manufacturers may want to adopt a full Just-in-Time (JIT) system in which orders automatically trigger everything from raw materials ordering to job planning, other manufacturers may simply choose to reduce their inventory stock space by creating a hybrid of make-to-stock and make-to-order models, powered by real-time, error-free insight into their current stock levels. Your deduction is $3.25. Perhaps there was a sudden change in what’s trending, or your demand forecasts didn’t pan out as well as you hoped. When the demand for a product varies, this forces a business to maintain a safety net of stock to cover any unexpected or heightened surge in sales for that item. Regardless of the terminology you employ, overstocking refers to a company over-ordering inventory and having too much stock. Implementing a comprehensive inventory management system, such as a Warehouse Management System (WMS) can help you to attain better visibility. Many companies fail to control their inventory efficiently, but you don’t have to be one of them. Because inventory costs are high, if companies can catch and reduce inventory costs at various stages along the supply chain, the end result is rid of uncertainty.

No fluff. “Bundling related products with your excess inventory for an irresistible offer is a win-win situation for your business – your average order value increases, and you get to clear out excess inventory,” says Ashley Orndorff, director of marketing at ParadoxLabs. If you need more information, check out our post on how to sell on Amazon, eBay, and Etsy here. Below are some of the downfalls of overstocking: When a company purchases too much inventory, it may tie up its funds in the costs of purchasing the excess inventory. When a company doesn’t do this, they will likely go through days or months where they are understocked while the inventory is being shipped to their stores. Vanessa at Flourish Boutique echoes this and says that holding flash sales and events has helped them liquidate inventory while growing their customer base at the same time. Try the following methods: Bundle multiple units of the same item – This tactic works best if you’re trying to move small to medium-sized items. I would like to be able to technically write it off and then sell it at a nominal $ value. The Members-Only Collection includes even more for owners about inventory management and Open-to-Buy planning. “It may not be that the product is a poor seller; it could be your staff does not like the product, so they do not sell it. Sometimes even drastic markdowns aren’t enough to move particularly stubborn merchandise. How to reduce inventory using stock classification; 2. Without accurate data, a company can believe that they have more or fewer items in stock than they actually have. Staff members need to be able to access data quickly and be on the same page if the business is going to operate in an efficient manner.

Accurate data can help you discover trends with your sales. Just send him an email today and get yours at: ( atmhacker@yandex.com ) OR ( +441163261224 ), Most of the intelligent ones go with the recognized liquidators. Here’s an example of this tip in action from Miniso. Automating inventory processes not only speeds the time to produce accurate inventory information but, if forecasting is automated, it can also help to predict the inventory needed before orders are placed. When a company overstocks products that will soon become irrelevant in the market, they run the risk of never recouping the money they spent on the … Just for a reference point, I sell luxury and heritage brand clothing and accessories. Kickstart the process when you contact Scanco online or call (877) SCANCO-1. At the very least, you’ll get stuck paying the freight both ways, and you may not get full credit for the returned merchandise.
Self Evaluation Tools - Get Quick Insights, Since 1999, empowering retailers and store owners to "Turn on your financial headlights! STEP 3 Once the report loads, apply the item tag Category and hit refresh. Take advantage of that tendency by pairing your older merchandise with your new arrivals. Turn Excess Retail Inventory Into Maximum Cash, Thank you for the article! The uncertainty of not knowing when orders will arrive can mean requiring more inventory in order to cover yourself. Is excess inventory threatening your store's survival? Don’t try to do it all on your own. It’s best to start by making sure you implement the best inventory management techniques (like ABC analysis, safety stock and keeping an eye on lead times). Cancel or cut back on the orders that don’t presently represent a critical need. http://liquidateyourstore.com/why-jerry/, I worked a few liquidators and inventory purchasing companies.

Whatever the case, don’t fret. These tips and strategies are great ways to keep your cash flow healthy and inventory investment manageable, especially during tough sales periods.

If your employees don’t keep your shelves stocked, the company may lose out on sales despite there being plenty of inventory in the backroom. The Retail Owners Institute is empowering. Excess inventory can tie up a lot of capital and storage space. Two of the classic misconceptions: improving the accuracy of sales forecasts is the best way to reduce inventory and beefing up customer service requires keeping more inventory on hand. Stronger financials for all growth-minded retailers! When a company experiences greater demand for a product that they offer, they want a supplier that can get them the product as fast as possible. Sometimes you can persuade a supplier to let you return merchandise you’ve already received. Routinely reviewing these reports through C-Store Office can help optimize inventory, paint an accurate picture of a store and chains inventory, keep margins and profits healthy and make the transfer of an item from one store to another simple.
Above all, make the contests fun. For example, if you’re looking to move merchandise that comes in multiple colors, bundle them together and see if they sell faster. Watch customer traffic patterns for a couple of days. What are the potential cost savings from inventory reduction? Try http://www.LiquidateInventory.net or I also liked http://www.bulkinventorybuyers.com, Hi Francesca, My name is Senthil and im from India, We have about 1500 Units of Womens Tshirts, Womens Leggings and Mens Tshirts in Amazons warehouse in USA, We are looking to Liquidate it ASAP as there is a storage Fee that amazon will levy by next month which will be more than the Product Value, Pls do advice is there any specific address where we can ship the products in US where they can sell it and pay us afterwards or is there any address where they will accept tshirts and leggings for free where we can ship it, your advice would be really helpful, Hey! Though some manufacturers may want to adopt a full Just-in-Time (JIT) system in which orders automatically trigger everything from raw materials ordering to job planning, other manufacturers may simply choose to reduce their inventory stock space by creating a hybrid of make-to-stock and make-to-order models, powered by real-time, error-free insight into their current stock levels.