Around 20 to 30 percent of a company’s inventory is deadstock inventory. Do you know what exactly it is and why should your business think about it? Deadstock inventory refers to the business’s products that cannot be sold and stored in your warehouse for a long time. If there is too much dead stock inventory, it can be harmful to the industrial suppliers in the USA; and that is where Bustle Board steps in. We help you clear off the old stock that occupies valuable warehouse space that could have been used to store some higher generating items. So, they should be disposed of quickly as it is not generating any revenue that results in unnecessary storage costs.
In order to help businesses, here are 5 ways to solve the problem.
- Sell with Bustle Board
At Bustle Board, we specialize in facilitating an e-marketplace where buyers and sellers of the dead stock meet. You can put up your entire old inventory of industrial and commercial goods, as long as it is unused and first-quality. We provide the best value products, allow sellers to create ads for products and bids, and allow sellers to view our inventory without the headache of registering first. You can expect a legal, ethical and professional reviewed marketplace for your old stock.
- Give discounts
To get rid of dead stock inventory, one of the best methods is to give substantial discounts to increase demands for the products. For instance, at Bustle Board, we offer customers unbelievable discounts that serve as an incentive to them. Make sure the discounts are large enough so the customers are incentivized to buy it. Your business may not generate profit with this strategy, but you can recover some production cost and increase the warehouse storage space.
- Donate to charity
Instead of throwing the dead stock inventory, you can also donate them to charity. The products would be put to better use in a charity than in the garbage. Depending on tax jurisdiction, you can get a tax write-off by donating to charity. Check with your tax advisors on what tax deductions will apply if you donate it for your area.
- Return products to suppliers
Negotiating with the suppliers to return the dead stock inventory can be an option sometimes. You might not be able to sell these products; the supplier may know customers who are willing to buy these products. However, they could be willing to take it back. Depending on the terms and conditions of the return policy, you need to pay a restocking fee to the suppliers. Usually, these fees are repacking costs to repack and return the items to them. The supplier rarely compensates your returns by cash. They will refund you in credits that you can use for the next purchase from them.
- Identify causes and take actions
Identify the root causes of dead stock inventory is an important step to fix it in the long term. The common root causes include product coming to an end to its product life cycle, the arrival of new competitors and changing customer trends. After you have identified the root cause, you can make changes to purchasing and sales strategies to prevent dead stock inventory.
- Tighten the purchasing process
You should streamline the purchasing process so you only order or manufacturers what it needs. You can start doing it by creating better communication protocols to make sure the warehouse and management team are on the same page. They should have the same information on the current stock levels and the expected production needs. It is a good practice to make sure there is a chain of command for senior management to approve orders to prevent redundant orders from occurring and ensuring accountability.
In order to prevent dead stock inventory, it is important to have proper strategies to improve your inventory management. If you have too many products that you have purchased impulsively and now regretting, Bustle Board will help you with the perfect solution. You will find a suitable party to take the problem off your hands.