16 February 2023

9 Tips to Avoid Inactive Inventory

16 February 2023

What is the current situation in your warehouse today? Do you have control over all the information about the products that enter, exit, and make up your stock? Do you know if there are goods that arrived a long time ago and whose exit is not yet planned? One thing is certain: if, based on the analysis of previous demand, you discover that there are products in your warehouse, the news couldn’t be different: you’re losing money! 

In general, inventory represents the majority of business investments. Given its importance for logistical, strategic, and financial management, inventory can be associated with the backbone that keeps a company functioning and performing. Following this line of thought, it is crucial to understand that, in practice, inactive inventory causes many damages to businesses and can become a significant enemy for companies aiming for success.

Therefore, it is essential to be aware of whether you have been right or wrong in managing stored products and their turnover. It is important to remember that stationery items, in addition to not generating economic returns for the company, occupy space in the warehouse and also risk being damaged, lost, or deteriorated over time. Some of the most common problems observed when an item remains in the warehouse for too long are:

  • Low liquidity: Liquidity is directly connected to the permanence of a product in your stock, that is, the time a particular product occupies on your warehouse shelf. Therefore, highly demanded items are consequently products with high liquidity and are ideal for ensuring a moving stock.
  • Storage and maintenance expenses: It is normal for companies to plan expenses for storing products in the warehouse, after all, having a warehouse requires specific investments, such as space, employees, equipment, among others. However, when a product exceeds the expected time, remaining in the warehouse, it can consume energy, time, and additional amounts in maintenance and storage costs.
  • Depreciation and loss of products: If additional expenses for custody and maintenance are foreseen in the previous item, when this practice is not carried out, the loss and even depreciation of the product may occur.
  • Loss of opportunities: Being competitive in the market and making increasingly significant strides toward the success of your company is directly connected to the opportunities that arise in the market, after all, a good entrepreneur and manager is capable of identifying good growth possibilities in the most diverse occasions.

Now you understand the main consequences of a stagnant stock. But perhaps you are wondering: after all, how can I move my inventory? It is time to learn how to eliminate this problem once and for all, effectively and very practically, by following the tips we will present to you. Take a look:

9 Practical and Effective Tips to Avoid Inactive Inventory

  1. Know your inventory: The success of a company depends on the efficiency of its planning, and the warehouse is no different!
  2. Plan actions for the flow of stored items: Once the inventory analysis is done and the products available in the warehouse are monitored, it’s time to create an efficient action plan.
  3. Understand market seasonality: What is the start and end of sales for each product in your stock today? Answering this question with firmness and awareness will be a determining factor in avoiding inactive inventory.
  4. Conduct promotions and stock clearance: Recognizing the seasonal periods that affect the products in your warehouse makes it easier to organize and plan promotional actions, as well as stock clearance in a given period.
  5. Have a capable team: The efficiency of inventory management can be observed when operational, logistical, and strategic functions are required and divided into teams.
  6. Analyze your consumer profile: Understanding what the consumer is looking for and market preferences are fundamental factors in avoiding inactive inventory.
  7. Negotiate with your suppliers: Before placing large orders, check with your suppliers if they allow exchanges or returns in case of low product output.
  8. Invest in new sales channels: The digitization of the market has brought new opportunities not only to retailers but also to industries and distributors.
  9. Automate inventory management with WMS: Finally, invest in an inventory management system capable of controlling all activities within your warehouse.

9 Tips to Avoid Inactive Inventory Deagor WMS per ecommerce può aiutarti!


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