It doesn’t matter what kind of business one does, excess inventory is common to all types of business and the companies have to find ways of controlling it because it tends to take a lot of storing space, tie up a lot of capital and also use a lot of money paying up the warehouse or the storage space. There are ways the company may use to deal with this problem and this article will take you through seven ways that will help reduce excess inventory.
Hiring The Right Managers
Having the right people who can make the right management decision on your team is key in any organization, this is because they will ensure they get the preference of the customer and make buying decisions based on what the customers need and want. this way they will get fast moving items and no excess to store.
Use Stoke Management Software
In today’s business, it is very important to embrace the new technology, this will go a long way in making your work easy and also help you be able to manage your stock purchases, this way you will get to understand your customer better and be able to stock the fast moving items.
Keeping records all through
Studying the customer’s trend for a long time will enable you to have an idea of your customer’s consumption patterns and this will help you stock the right items that will move and reduce the long periods of storage
Have Smart Ordering Systems
It is very important to have good supplier base, suppliers that can deliver items in short notice, this way you can be able to make orders on rolling basis you will only make an order when the items are running low to a point of getting finished, it is a very risky method but it can work successfully if you have good management.
Bundle up slow Moving Goods
When you start noticing the slow-moving items have started to accumulate it is good to come up with a plan on how to reduce it this is because if you don’t do so you will have excess inventory, you can bundle up these slow-moving items with the first moving once and it will help clear the dead stock.
Discount those items
Giving discounts on those items that are slow moving is another way to keep them moving, you can start by giving 20% to 30 % off, who doesn’t love discounts this will encourage the customers to buy, you can start off by having a sales event which will bring new customers on board and also encourage old once to shop.
Refresh, re-Merchandise or remarket.
Sometimes when the items are not selling its not necessarily that the product has a problem, it may be how you have positioned it, it’s good to sometime reposition or move the particular item into a different area in the store and to start marketing it a fresh changing the price tags and the way of display can make the customers see it in a different angle and make the product look new.
We all know that inventory can tie up a lot of capital and use up space in the warehouse, but this article has given you some of the ways you can use to try to control and also avoid having excess inventory some of the ways like, discounting slow-moving items, remarketing, bundling them up with moving items, having the right people to work for you, keeping good records and knowing when to order can help you reduce dead stock and help you to save on costs and also to avoid excess inventory.