Inventory management may make you anxious every time but it is a crucial part of any business that deals in physical goods. Managing the inventory efficiently in the warehouse and in the store can help you in increasing your profits. One of the biggest problems related to the stock in the business world is that of excess inventory.
Excess inventory can paralyze a business during peak business season. The leftover goods or overstock of certain products can affect the bottom line of a business. Excess inventory affects the business in the following ways
Restricts cash flow :
When a business has to deal with old products in the warehouse, it can’t think of investing money in new products. The cash flow is tied as the unsold excess inventory is restricting the cash flow. A business is disabled as it does not have a running cash flow because the old excess inventory is still in the warehouse.
Obsolete and expired products :
If you are dealing in technical goods or perishable products, then your business can face this problem due to overstocking. The technical goods in your warehouse can become obsolete with time. The perishable goods can expire pretty soon. Even the quality of all kinds of products can be compromised if they are kept in the warehouse for a very long time. This is a major reason why excess inventory needs to be managed properly in a business.
The problem of excess inventory is faced by every business every now and then. Liquidating and getting rid of the excess inventory is an important part of any business. It not only ensures a better cash flow or saves valuable storage space for new products, but it also helps a business in improving the bottom line or increasing the profits of the business. Here are some ways to ensure that the excess inventory in your warehouse gets liquidated on time.
Run Discounts
If you are dealing with an overstock of certain products, then you should try to run sales. From clearance sales to flash sales, putting a good discount on such products will help in the quick movement of these products from the warehouse. You can make bundle deals of these products by combining them with popular or fast-moving goods or you can simply offer these as incentives to customers if they have a lower price value. Discounts and sales help a lot in dealing with excess inventory.
Remarketing
You might come across certain products that have the potential and yet they are not selling. This could be a case of bad marketing. Consider remarketing these products in new ways by using digital marketing tools and you will see how quickly the excess inventory is liquidated.
Excess Inventory Management Companies
One of the ways to avoid decreasing your profits or making any expenses to sell the overstock is to rely on the services of excess inventory management companies. These companies offer a B2B solution for bulk sales of excess inventory. You can sell off the overstock without decreasing the profit margins.
Excess2sell is one of the best excess inventory liquidation companies in India. It provides a B2B solution for all kinds of industries to liquidate their excess inventory in a profitable way. Excess2sell provides a user-friendly platform to businesses for selling excess inventory with ease and thereby improving the bottom line of the business
