Make time for excess inventory management
22 Jan 2019
Technology is everywhere, from our pockets, to our fridges to our cars. We live in a connected world where more and more items are becoming “smart”. The rate that this is happening is meaning that demand is outstripping supply and lead times are sometimes not measured in days or weeks, but months, quarters and calendar years. In no other area is this more apparent than the current demand for MLCC capacitors coming from the advancement of the automotive industry’s push towards electric cars.
Manufacturers are finding it harder to forecast component requirements and as a result, original equipment manufacturers are facing excess inventory issues. These parts drop value each day as more impressive parts replace them. During production runs, having a reserve of parts ready to go is prudent, but what about when projects end? This step-by-step guide illustrates how cleaning out surplus stock generates extra space and money.
Know your stock
To manage stock effectively, you need to know what it is. Ensure an inventory listing system is in place and regularly updated to keep track of stock. Note the date parts were bought in and when they were last required. A well-managed stock list should soon highlight excess stock.
Once an excess list has been compiled, assess its best potential. If there’s no future requirement internally for production or repairs, that stock is taking up space, so it’s time to sell. An outright excess buy is probably best for those who need an immediate return. Those with patience could achieve a higher return by using our specialist consignment program. With component shortages at an all-time high, it may be possible to get close to the original cost paid or in some cases, more. Discuss the ideal type of return for overstock and set return targets.
As a company 100% focused on excess stock, we have a network dedicated to getting maximum returns. We will market your stock to the right people and bring in the highest return possible. Once an offer has come back you are happy with, agree the deal and confirm with an invoice. This excess is now no longer an expense, but money back on the balance sheet.
Ship it out
The last stage is to ship the excess inventory. CCL will pay and organise freight so you don't need to. Simply package the parts like any other order and supply weights and dimensions.
Reap the benefits
There are many benefits to selling overstock. It clears space in the warehouse, puts money in your pocket and supports forecasting.
Take time to consider how often you find a list can be compiled. Yearly? Quarterly?Make clearing your unused inventory a regular practice. Now that you have the extra funds and space, invest in future projects and you will soon see how managing your excess stock properly will help grow you business in the long run.