How to Handle the Threat Excess Stock Can Have on Your Bottom-Line

by | Jul 31, 2017 | Computers

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Inventory management uses the term excess stock in regards to stock surplus, overstock, excess inventory, and excessive stock. The term may change, but it still means that overstock is a threat to your business’ bottom-line. A lot of time overstock is due to poor management when it comes to demand forecasting as well as replenishment. This is due to the lack of properly tracking life-cycle stages of products. That’s why it’s important to reach out to excess inventory buyers that can assist you in dealing with your overstock in a lucrative manner.

You Should Be Concerned with Cost Considerations

An excessive stock level comes with various cost considerations that your business should be concerned and aware of. The first being the obvious loss of revenue that is associated with retaining a high level of inventory for products that are not in demand in today’s market. Essentially this means that you’ve tied up your company dollars in capital that’s directly linked to the purchase of merchandise as well as the costs associated with storing it, otherwise known as carrying costs. Those types of costs can add up fast and including factors such as rent, equipment costs, utilities, insurance, labor cost and any interests that may accrue.

Get Help with Your Declining Stage of Product Life Cycles

Just because you are dealing with the declining stage of a product life cycle it does not mean that those products don’t have any demand. It’s just starting to phase out, and the life cycle may not have been monitored in the best manner to catch the phase out. When you utilize material disposition services it can help to managed your excess costs and any financial loss. Turn to excessive inventory specialists to assist you with overstock solutions that can help eliminate unnecessary costs.

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