Obsolete inventory presents a big problem for a lot of businesses. There are many different incidents whereby surplus stock arises, these range from bad management decisions, to the natural circumstances which occur from dealing in the retail industry, to sometimes simply being unlucky. When you experience excess inventory it is important that you seek methods in order to maximize your recovery value as much as possible so that the impact of the loss is minimized.
One of the major problem areas for companies when it comes to dealing with their surplus stock is product returns. It is important to offer an effective and generous returns policy nowadays. This is as a result of the competitive nature of the retail world coupled with the boom in online shopping. Individuals want to be safe in the knowledge that they can buy a product on the internet which they can easily send it back if they don’t like it. Nevertheless, this returns processing procedure presents a big problem for companies. This is because the returned merchandise is often considered surplus by the time it has been received, or is simply unable to be sold via the usual route.
There are of course several other reasons as to why you may suffer at the hands of excess inventory. When goods reach their end of product life cycle companies are often left with a selection of discontinued merchandise which they need to shift. This can be because the product is out of style or out of season, for instance summer clothing or Christmas decorations. Moreover, another example of discontinued merchandise includes when a new version of the current product is released onto the market, this is something which happens frequently with video games.
Aside from this, there are liquidations inventory. This is when a business is closing down, and thus they need to get rid of all of their stock, as advised by their bankruptcy attorney. Cash flow from excess inventory is often desperately needed in order to pay off debts. Thus, the need to maximize your recovery value takes on an even greater importance. In this instance it is very much recommended to seek the aid of an inventory recovery business. An inventory recovery business will be able to ensure that you retain as much monetary value as possible from your excess stock. They are highly beneficial because they have access to a wealth of resources, insight knowledge, and firsthand experience. They will be able to tell you the best way to offload your stock in order to gain maximum recovery. After all, different products need different recovery strategies.
Of course, an inventory recovery business is not simply suited to those facing liquidation. These companies are beneficial to any business which faces obsolete inventory. The methods they offer vary substantially, from setting up an online auction for your goods, to offering you a B2B online market place, to providing kitting services over the traditional pick and pack methods, to offering products to be sold by the container load, and so on and so forth. The reason why an inventory recovery business is often considered more efficient in comparison to tackling your surplus stock alone is because they can offer you all of these methods combined in order to deal with different types of products you have been left with. For example, it may be more beneficial to sell your merchandise returns via an online auction. However, selling discontinued merchandise may be more effective via assembling the product with other goods and selling as a kit. Most companies do not have the resources to implement several different methods themselves and thus they cannot effectively maximize cash flow from excess inventory.
Unfortunately, in the retail world excess inventory is a frequent occurrence, nevertheless seeking a quality inventory recovery business is the best way to ensure that you maximize your recovery value and thus soften the blow.
