Excess inventory is a term used to define a surplus of stock that is left sitting in a company’s warehouse.
This problem could occur due to poor forecasting, a complete shift in the manufacturing process, or via a particular component or part becoming outdated or obsolescent. Some root causes of excess can be guarded against but some can’t and as such, it is likely to be a problem that every business will face at some point.
No matter how the issue arises, an excess inventory can pose a significant threat to a businesses’ operating margin. First of all, there is the obvious loss of revenue with associated with a product or part sat on a warehouse shelf. Then there is the additional cost of maintaining and storing the excess, and the initial expenditure linked to the original purchases.
Combined, this makes for bad reading when marked down on a company’s balance sheets.
However, there is a way to recoup some of your lost finances.
There are a number of companies out there who specialise in pouring over excess stock lists and working out a cost-effective way to manage your redundant assets. With over twenty-years’ experience in this field, Cyclops Excess is one of the biggest and most reputable firms that deals with excess inventory on a day-to-day basis.
Monetising leftover stock is our core business. The services that we provide are currently used by companies of all sizes based in Asia Pacific, North America and European markets.
Cyclops Excess is part of the Cyclops Group and due to this relationship we have the contacts and ability to promote your excess to a wide variety of brokers, dealers, OEMs and CEMs around the world, maximising the probability of turning your resource draining stock into a positive asset.
From there, we’ll do the rest of the work: We will analyse each line by checking it against current market price, previous purchase history and forecasted demand.
Once we agree on a plan of action – generally either consignment or immediate payment – the stock will then be transferred from your warehouse to ours and our sales team will get to work.
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