Below are some practices that the best companies use to ensure that they keep their inventory at optimal levels: Obsolete inventory is one of the most frustrating problems for a company to deal with. If you don’t regularly communicate with your supplier or have a good relationship with them, your company opens itself up to risks. Whatever the case, don’t fret. Contact us online or call us at (877) SCANCO-1 to schedule your free warehouse software consultation. by Patricia M. Johnson, CMC and Richard F. Outcalt, CMC. If it makes sense for your store, consider grouping certain products together and selling them for a slightly lower price than if bought separately. The total cost of this inventory can be as high as 25% when considering the cost of the storage, shrinkage, damage and the time value of money.

Meet customer demands and prioritize safety with QwickServe, a retail curbside pickup solution from Petrosoft. “When possible, return the merchandise to your vendor in exchange for credit or new merchandise,” adds Judy. Bundle complementary products – Does the surplus stock complement any other items in your store?
We’re happy to help. Having too much inventory is pretty high up on the list of no-nos for retailers.

What are the potential cost savings from inventory reduction? STEP 5 Review the Snacks category Overstock Items report for the amount on hand over the next two and four weeks. Top five inventory reduction methods 1. If you have a great relationship with them, you should definitely explore this option. This term covers a whole host of issues, many of which stem from a lack of inventory management software. Here are less drastic ways to get your inventory under control again.


This technique is relatively simple to implement. If you find yourself long on inventory and short on profits—whether from overbuying, expanding lines too quickly, or overestimating sales, don’t panic. You sure can change the original dollar value in a CSV spreadsheet. #3 - Step Up Replenishment Intervals. All merchandise, particularly seasonal goods, will hit peak value just before hitting peak sales. According to her, if you’re dealing with slow-moving inventory, it’s a good idea to double or triple-expose your merchandise. Is excess inventory threatening your store's survival? Excess inventory can tie up a lot of capital and storage space. One method that has worked great for me is listing my excess inventory on Liquidation.com.

Plus, “if done right, you are gaining new customers to help regular sales into the future,” she adds.

You also want to be able to predict when there will be greater demand for the items and products that you offer.

Use a combination of the following 10 strategies to help you bring your inventory back to a more manageable level. ©copyright 1999-2019, The Retail Owners Institute. Above all, make the contests fun. It’s not just about taxes, though. A WMS can assist by limiting inventory movement and improving record accuracy, helping to reduce lead times, lower the need for safety stock, and ensure low stock is replenished. For products such as food or healthcare products, products past their expiration date may need to have the assets written down as the products can no longer be sold. Finding ways to free up capital is crucial, as your ability to generate profit will be hindered by the amount of money you have to buy inventory.

Some of these uncertainties can be created by a company or supplier’s poor quality, or in the form of late delivery times, unstable production schedules, or fluctuations and poor forecasts in customer demand. I have just purchased a business that has Vend and as much as the above ideas would be great I have in excess of a 1000 pairs of running shoes and clothing/swimwear that is over 3 years old. You need to keep an eye on how products are moving so you can make the right purchasing and marketing decisions. See ahead, compare choices.

This won’t work in today’s landscape of tight margins and increased warehouse efficiency. Ensuring that staff members know how to use inventory management software programs is key, as the tools can help them analyze past trends and create a plan for the future. Here’s our step-by-step guide on editing products using CSVs: http://ow.ly/WCsab. One main feature of bad communication is not having anything written down between a company and a supplier. STEP 4 Navigate down to the Overstocks chart and select the Snacks bar, which will open the Overstock Items report for that category. Mobile solutions to help manage your retail operations and simplify food service orders. A supplier who doesn’t feel particularly obligated to you may not put in the extra effort to rush a shipment so you can keep up with extra demand. With that information, a company will know how much inventory they should order to meet the demands of their customers. Manufacturers and distributors often choose to liquidate their excess stock through third-party auctions or discount sellers, but this isn’t a long-term, sustainable solution because it cuts into your margins and it takes time to effectively negotiate with resellers.

Consider doing something similar in your store. They noticed that their low-margin items (such as tea accessories) were moving faster than their high-margin ones (house-made teas) so they opted to group them together at a slightly lower price. Transfer Instead of Purchase: When an overstock SKU in one location needs to be purchased to replenish inventory in another location, transfers are a smart way to reduce inventory, provided that the additional warehousing and transportation expenses are not so high that the reduction in holding cost does not exceed the cost to transfer. This handy tip is from retail expert Christine Guillot. As a company, you’ll want to look for inventory management software that is easy to use, can integrate seamlessly into other programs and devices and will provide detailed cost analyses. Now, if these merchandising tactics won’t work, you may need to consider slashing your prices. Kickstart the process when you contact Scanco online or call (877) SCANCO-1. Obviously, the quicker your merchandise hits the floor, the quicker it will move.

Self Evaluation Tools - Get Quick Insights, Since 1999, empowering retailers and store owners to "Turn on your financial headlights! Manage overstocked, understocked and out-of-stock inventory by leveraging forecasting tools.

That was the hardest part of this whole process. https://uploads.disquscdn.com/images/83afbc58ca38a591fdce7b3cf441ee767a0f1239b018890c642f4361df214e17.png. If the markup is considerably higher, deductions are limited to twice cost. The fact is, both assumptions can lead to inventory gluts or shortages. Do note that each marketplace has its own rules and fees, so take note of the fine print before signing up. Without accurate data, a company can believe that they have more or fewer items in stock than they actually have. Even with great data helping keep your shelves stocked, you’ll need staff who can properly sell the products.

This isn’t the time to introduce a new product line. The cost of utilities, maintenance, and warehouse space can go up significantly if a company routinely overstocks.


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