Stagnant Inventory Spider Web Inventory Management Software

While costume-clad humans are busy scaring the living this Halloween, several businesses will likely be facing a different kind of lurker: stagnant inventory.  Warehouse space is valuable and every single inch matters. Whether inventory is kept in the back or remote storage, it should always be kept in motion and cobweb-free. 

Selling old or extra inventory can seem like a big hassle but stagnant inventory has a tendency to hold back operations and strangle cash flow so read on to resurrect revenues from dusty old inventory.

Top 5 Tips to Eliminate Stagnant Inventory

1. Streamline your operational processes.

Prevention is key. Make sure business operations are optimized, allowing for a constant flow of inventory. The longer a product sits on the back shelf, the more likely it will be forgotten by everyone but the spiders.

Constantly keep things moving on the store floor and off the shelves of the warehouse. The best way to do this? Keep track of how long an item has been in inventory and set a sell-by date. Then actively work to get past due items sold or put them to other good uses.

2. Offer a discounts or bundle.

If your warehouse is being haunted by inventory past its sell-by date, start thinking about creative ways to discount those items. Buy-one, get-one FREE offers are one example of a discounting strategy that moves a higher volume of items.

If products are not selling very well individually, try bundling slow sellers with faster sellers at a reduced price. This approach is considered a "win-win-win" because it moves product, establishes value for customers and minimizes loss of profit margins.

3. Leverage products as incentives.

Encourage customers to "tell a friend" about your company in exchange for a free item of stagnant inventory. It's a great way to source word-of-mouth marketing while leveraging items that are just collecting cobwebs. It may not bring in cash for the item, but it will build awareness and loyalty while clearing out space for new, better-selling stock.

4. Sell inventory to a liquidator.

Need that shelf space back pronto? Unable to clear remaining unsold items? Try connecting with an inventory liquidator. Liquidators will buy items in bulk and sell them on your behalf at a discount for a small piece of the proceeds.

There are many business-to-business marketplaces that help sell products to other businesses online.  Just make sure you clearly understand the value of your inventory and what you're willing to sell it for.

5. Donate for a tax deduction.

After all other channels have been exhausted or if just looking for a quick-fix, donating inventory is another option. The great part? An incorporated business can earn above-cost, federal income tax deductions on items donated.

Bonus points if you can source a charity that vibes well with your brand. Its possible you may be able to work out a partnership that can also drive some valuable marketing and public relations for your business and the charity. Before employing this strategy, be sure to research what businesses can and cannot write-off.

 

We hope that helps calm some warehouse fright!

HAPPY HALLOWEEN 
from Klear Systems!

For more information on Inventory Management, 
Please contact us today!

 

Kimberly Tucker

Written by Kimberly Tucker