Back to Business Inventory

For a business to become successful, it should have a good inventory. What is an inventory? It is basically a list that is used to track something. For example, manufacturers have an inventory of products which are still in the warehouse and have not been sold. The list can also include items which have been ordered already from other companies. This list is not just used for documentation purposes but more importantly, it reflects the assets that a business has. This inventory needs to be monitored regularly because a lot of problems may arise when this is not properly managed.

One of the problems that most companies experience is an excess inventory. This may seem like a small issue but it is not. This is a big deal because excess products are not necessarily transformed into profit. Rather, they do not contribute to the development of the business because they cannot be sold to the consumers anymore. These products are usually out of their selling period already. When this happens, the inventory is already termed as ‘dead’ or ‘obsolete’. Having too much of your items should be a sign that the inventory is not being monitored correctly.

A possible reason why obsolete inventory happens is when a company purchases above what is necessary. Wrong forecasting is one of the main root causes that can be addressed immediately. Also, when there is a decrease in sales, excess products will also be stuck in the warehouse. Of course, there are also management issues that can contribute to a dead inventory. As you can see, the problem is multi-factorial. It stems not only from a single cause but from multiple reasons which are related to each other. You do not want this to happen because you might not recover from it.

Fortunately, there is a solution to the problem. What you can do is to sell inventory. To whom should you sell your items? Merchandise liquidators exist to that businesses will have someone who can buy their excess inventory. This is a huge blessing to companies who have excess inventory because not only will they be able to eliminate their unsold products but also, they will actually earn from it. Instead of keeping them in the warehouse, something good will come out of the problem. It is a good idea to transact directly with merchandise liquidators and make a good deal with them.

These merchandise liquidators will also sell the products to other businesses or individuals. It is like a chain that will be beneficial for everyone who is involved. If you do not know of any liquidator, you can easily search the internet. Also, you may ask your suppliers if they know one. Eventually, you will be able to restore the normal operations of your company. Although it might take time, what’s important is that you do not have to deal with the effects of an obsolete inventory. Going back to business will not be a problem. 

Excess Inventory Formula