What is Excess Inventory?
Excess inventory is a term used in inventory management as a product that has not yet been sold and that has exceeded the predicted demand for the product by the customer.
It usually represents a miscalculation or mismanagement of product demand due to factors such as over-buying, products becoming obsolete, the economy and several other unseen factors.
No matter the size, scale or scope of your business, excess inventory is a problem that we all have to deal with at some point or another. Even after months of hard work and planning, inefficiencies can appear in the supply chain, especially if consumer or manufacturer demand fluctuates ever so slightly.
What are the problems associated with excess inventory?
Excess stock or merchandise can lead to a variety of problems, some of them include:
- Reduced Profits
- Storage problems
- Warehouse inefficiencies
- Additional storage costs
What is Inventory Turnover?What does it tell you?
According to Investopedia, inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. Calculating a company’s inventory turnover can help in making better decisions about the business and how inventory is managed during the season.
The calculation helps you measure how fast a company sells inventory and can help analyts compare it to industry averages which can give you a clear picture of where you stand when compared to your competitors. Using the information you can tighten your inventory management to reduce excess stock and create a sustainable flow within the business.
What can you do with Excess stock?
There is a lot you could do with excess stock, you could scrap it, sell it at a discount or you could sell it to specialist buyers, who will not only buy all you excess stock at once but also pay to transport them out of your warehouse.
Cyclops Excess are able to look over your stock and consult with you to provide a tailor made solution to manage your stock. We want to maximise your financial return with the variety of services that we offer.
Whether you’re looking to move your inventory with one transaction, or develop a long term relationship with a business partner who fully understand your needs, look no further than Cyclops Excess.
Should you choose to establish a partnership with us, you will be working with a company with experience of handling excess stock from small manufacturers to some of the largest international distributors.