To effectively eliminate surplus inventory, industrial distributors should appoint a "surplus czar" to coordinate the surplus management process. The czar must work with both sales and purchasing departments to eliminate obsolete, de-listed and slow moving inventory items. Here's how:
Full Answer
Why do companies have surplus stock on their websites?
This allows the company to showcase and sell millions of products on their website without physically stocking the merchandise. We hope this post helped you see that you don’t have to sweat the surplus stock.
How do you liquidate a store with a surplus?
If you’re looking at a surplus of merchandise in your store, there are several steps you can take to liquidate them: 1. Refresh, re-merchandise, or remarket When an item isn’t selling, the problem may not necessarily be the product itself.
How to get rid of non-saleable stocks?
Any stock that hasn’t been transported for a period such as 200+ days or products with low turn rate as compared to the quantity at hand are best liquified to help the company minimize the loss and thus, also get rid of non-saleable stocks. This is an essential part of all retail businesses.
What to do with excess stock in your store?
If remarketing or remerchandising doesn’t work, consider lowering prices for of excess stock. Kat Rosati, Brand Manager at Apparel Booster, advises retailers to discount prices at certain increments. “Start off with something small, say 30% and then continue to discount,” she says.
What do farmers do with dead livestock?
Proper disposal of carcasses is important to prevent transmission of livestock disease and to protect air and water quality. Typical methods for the disposal of animal mortalities have included rendering, burial, incineration, and composting; each with its own challenges.
How do you get rid of animal carcass?
Three common effective methods of carcass disposal are: incineration, burying, and rendering. Incineration is the preferred method to use when the carcass is diseased; however, it can also be the most expensive. An acceptable alternative is to bury the carcass.
How can we reduce animal agriculture?
5 Ways You Can Help Farm AnimalsEat Less Meat, Dairy, and Eggs. About 9 billion land animals are slaughtered for food in the United States each year. ... Shop for Higher-Welfare Food. ... Never Eat These Foods. ... Fight the Growth of Factory Farms. ... Spread the Word–And More!
What is the most efficient livestock?
The 8 Most Profitable Farm AnimalsChickens – Most Profitable Farm Animal for Small Homesteaders. ... Goats – Most Profitable Animal to Breed. ... Bees – Most Profitable Farm Animal for Hobby Farmers. ... Quail. ... Rabbits. ... Cattle – Most Profitable Livestock for Those with Plenty of Acreage. ... Pigs. ... Sheep.
How do you dispose of a large animal carcass?
of Carcasses Disposal to licenced landfill is the preferred option in most instances especially where there are large mortalities or where onsite issues (e.g. size, soil type, water table etc.) prevent environmentally safe burial.
How are dead cow disposed of?
Incineration works well with carcasses up to about 40 pounds. The burning of carcasses in an incinerator may be especially desirable in outbreaks of some contagious diseases, although it may still produce air pollution (smoke and odor).
How can we stop livestock farming?
Protect Farmed Animals For National Farm Animals Day: 4 Ways to Reduce Factory Farming CrueltyKeep farmed animals safe from natural disasters. ... Pledge to raise pigs right. ... Create change for chickens. ... Eat less meat.
How can we mitigate the impact of livestock farming on the environment?
These include reducing water use (e.g. through more efficient irrigation methods and animal cooling systems), reducing depletion or harm to water supplies (e.g. through increased water-use efficiency and improved waste management and feed-crop fertilization practices) and greater replenishment of water resources ...
Can we feed world without meat?
Food production is about a tenth of the world's approximate global GDP of $88 trillion1 and a recent study found that if everyone alive ate meat at the rate of the average American consumer, we would need to use 138 percent of the habitable area of the planet for agriculture alone2. It's just physically impossible.
What is the cheapest farm animal to own?
Chickens are generally a low-cost farm animal; the feed is cheap, and they love to eat all of your scraps.
What is the most profitable thing to farm?
20 Most Profitable Small Farm IdeasTree Nursery. A tree nursery can be a great investment when done right. ... Fish Farming. ... Dual Crop Farming. ... Dairy Farming. ... Herb Gardening. ... Bee Farming. ... Aquaponics. ... Microgreens Farming.More items...•
What is the lowest maintenance farm animal?
The chicken topped the list for the most low maintenance farm animal. Chickens don't need much land, food, or clean-up, and in turn, just a couple of chickens can provide you with a constant supply of meat and eggs.
How to get rid of stock?
Here are some solutions to get rid of extra products in your stock: 1 Develop a contribution to profit analysis for all the inventory products as a part of your periodic merchandising study or in monthly or, if possible, weekly reports. Analyze your product sales, keep track of it and develop candidates for liquidation (the slow sellers). 2 A liquidation strategy should first be executable with your website or other selling media. You may as well use your brand’s online platform to clear the stocks at a lower price as compared to stores.
What does it mean when a retailer is overstocking?
Supply more than demand could reflect that a retailer is overstocking, and hence, indicate a significant downfall of profit while a high rate suggests keeping more inventory in stock.
Why is inventory liquidation important?
Inventory liquidation is one of the best ways to consider as it would help to minimize the loss due to excess inventory.
What happens to inventory once a year?
Once a year has passed, your physical inventory declines in value and keeps on declining. Rather than clinging on to these items expecting that someday you will sell them, and adding on to the loss percentage, it is always best to find ways to clear your stock.
What happens when you list inventory at clearance prices?
When you list your inventory products at clearance prices, you can clear the stock as well as earn a decent profit. This is a great way to remove redundant products from the shelves without affecting the business and making a good cut to the profits which shall reflect on the positive side of balance sheets.
Why do new packaged products attract more shoppers?
These new packaged products attract more shoppers due to more cost-effectiveness, and therefore, they are tempted to invest their money in it.
Are you a Vend user?
Deciding which products to include is key when planning a sale in your retail store. Vend has a number of reports to help you determine which products to discount and promote. Learn more by watching the Vend U’s video course on running sales.
About Francesca Nicasio
Francesca Nicasio is Vend's Retail Expert and Content Strategist. She writes about trends, tips, and other cool things that enable retailers to increase sales, serve customers better, and be more awesome overall. She's also the author of Retail Survival of the Fittest, a free eBook to help retailers future-proof their stores.
Why is there surplus inventory?
Some likely causes for surplus inventory include a loss of a customer or supplier, a new competitor, the end of a season or product lifecycle, or an internal consolidation or branch closure. Distributors need to prioritize their surplus inventory by shelf life, aging, investment value and turnover.
How much was overstock in 2002?
It's estimated that product overstock and surplus inventory will total $445 billion by 2002. The magnitude of the problem warrants immediate and dedicated attention. In a soft, yet highly competitive economy, industrial distributors must find ways to avoid, identify and sell surplus inventory. Avoid it.
What are stocking policies?
Stocking policies should include "no returns after" and "no returns before" deadlines. Create incentives to encourage customers to accept a total quantity of special items. Implement customer end-of-life and final sales agreements, which require customers to purchase all on-hand quantities at a set time.
Can distributors tuck away surplus inventory?
As much as distributors may like to tuck away the problem as easily as they can tuck away the surplus inventory in the dusty, back corner of their warehouse, they can't . The bottom line is that surplus inventory is one of the largest costs that today's industrial distributor faces.
What happens if you have excess inventory?
If you have excess inventory for such products, you’ll either have to sell them at a fraction of the purchase cost or discard them altogether, resulting in loss of money or wastage. However, reducing overstock inventory can help you avoid such situations.
What is bulk buying?
Buying in bulk is a common practice among manufacturers, retailers, and distributors. You get wholesale merchandise at discounted prices and stock enough to meet demand for a long time, but you also increase the chances of overstock. Let’s understand this with an example.
How does inventory carry costs affect the price of a product?
In simple words, lower your maintenance and insurance costs, higher your ability to sell items at competitive prices.
How many stages are there in the inventory lifecycle?
The lifecycle of every inventory item can be divided into four stages, as can be seen in the chart below: When products enter the decline stage, they can be tagged as old or obsolete inventory. You’ll find it difficult to sell these items, and excess stock will start piling up.
Is offering discounts good for warehouse?
Offering discounts (e.g., a clearance sale for closeout merchandise) is a good way of offloading old inventory, but you may face short-term losses. However, on the bright side, your warehouse will have more space for products with higher demand. Here’s how you can identify obsolete inventory:
Can you overstock in February?
However, if you’d purchased product A in smaller batches of 20,000 units per month, there would be no overstock in February. Also, you could have used the tied-up capital to purchase more units of product B, which would have led to higher profits for your business.
Is clearing overstock good for business?
Clearing overstock will benefit your business, but overdoing it can lead to out-of-stock products and, as a result, poor customer experience. Thus, take a planned approach to calculate how much stock to give up. Here are three simple ways to do that.
How To Get Rid of Excess Inventory: Tips and Considerations
For many businesses, determining how much of their product to stock is one of the first and most difficult challenges to address.
What Is Excess Inventory?
Excess inventory, also known as overstock, is exactly what it sounds like — extra product. Excess inventory usually refers to inventory that is selling slowly and/or exceeds projected demand, which results in a poor return on the business’s investment in the product. Many factors can result in excess inventory, including:
Effects of Excess Inventory
Excess inventory can have many negative effects on a business, ranging from direct impacts on profit to more subtle complications for business operations.
How to Reduce Overstock Inventory
While avoiding overstock is ideal, it is not always possible. When a business does have to deal with excess inventory, there are several avenues they can take to deal with it.
