Supply chain projects 2018: Shred your obsolete stock
As we embark upon the new year, no doubt many of us are carrying a few extra pounds. The same holds true for businesses: there is always scope to trim down the excess inventory.
Holding high levels of obsolete stock is bad for business. However, removing these items from your operation is often easier said than done. Given that you have made a financial investment in these products, accepting that these items no longer offer any value can be a hard pill to swallow. So what can you do to “painlessly” remove obsolete stock from your operations while still keeping the potential financial impact to a minimum?
Eliminating waste takes great courage!
Based on the experience of the inventory analysts at Slimstock, of all the items in your warehouse, typically, 10% will never be sold. Given that these items are unlikely to bring in any revenue, why are you holding onto them?
Although writing off stock will come at the cost of your margins which won’t amuse the finance director or the board, it is totally necessary. After all, when you consider that you have already lost your original investment in these items, continuing to stock these products will only cost you more money!
Refine your assortment
To help you refine your assortment in 2018, we have outlined 4 simple steps to help you eliminate the obsolete stock which is holding your business back. Through following these tips, you will be able to minimise inventory costs and free up working capital: both of which will no doubt be music to the financial director’s ears!
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