Solutions To Forget Dealing With Obsolete Inventory With Automated Inventory Management System

The one thing worse beyond having no inventory is having an obsolete inventory. Meaning you have too much of stuff that is not in demand anymore or directly not selling. Getting rid of obsolete inventory goods is tough. You need space for new goods, and so many times, this may force you to sell it off at a loss or write it off as an expense. But there are other ways of how you can get rid of it like:

Donate for tax deductions: Surplus inventory can be donated to charity to get some tax deductions. If you happen to be an S corporation, sole proprietorship, partnership, LLC you qualify for an upright cost deduction

Remarket items: Reposition your item by creating a new display or introducing flash sale. You can even market it through various social media platforms.

Discounted sale: This is a simple and straightforward way of selling goods. The beneficial factor is that you can reach to newer audience segment.

Combo offer: This is also called product bundling wherein you combine two or three products and sell them at a discounted rate.

What is the Root Cause of This Obsolete Inventory?

The reason for obsolete inventory is due to the lack of planning, unorganized purchases, not got demand forecast analysis, improper inventory management software, or no streamlined inventory management system. It is also a warning that your business may not be performing well and requires replenishing the strategy or implementing newer techniques to enhance sales, especially in e-commerce business.

Tips to Avoid Obsolete Inventory

No one would ever want to deal with another load of obsolete inventory again. So, here are a few tips for averting this obsolete crisis from the beginning.

Forecast on demand: It is always better to know what you are going to deal with. The numbers on the items expected, how much stock is required, can be accurately pointed out in the forecast analysis. By knowing the sales trends of previous years, the products that show a proven track record, and competitor analysis, you can formulate an action plan accordingly.

Know when to place a reorder: Predicting the right time to order more inventory is very important. You cannot be without sufficient inventory when there is a demand. In addition to knowing when you must also know how much stock is required.

Real-time inventory levels tracking: A cloud-based inventory management system can give you the rough details of your inventory levels as it lets you see how much inventory is in possession at all times. From that, you can understand if you have excess stock and increase your sales or if you’re running low on specific products and have to reorder.

Inventory management software plays a crucial role in tracking inventory activities, but they often fail to identify what stock to carry and the volume that is required to cope with customer demand. So, you need to ensure that your software is fully optimized to give you the information on demand forecasting, stock data, and reordering.

We can help you with a custom inventory management solutions using advanced algorithms to automate the process. With eSellerHub’s inventory management, all SKUs can be trailed along with their product life cycle, giving you enough time to take the appropriate action. Call us to know more: +1 408 600 0534.