The Ultimate Tips for Managing Surplus Inventory

According to research, improving your inventory records can easily increase sales by 4% to 8%. That’s a huge number, and it’s one of the many reasons you should keep track of your surplus inventory.

The thing is, surplus inventory can be a real pain to manage. For many businesses, it’s simply an unavoidable byproduct. Maybe you sell products with a limited shelf life, or maybe your manufacturing process results in a few extra units every now and then.

Whatever the case may be, surplus inventory can quickly become a money pit if you’re not careful. That’s why it’s important to have an inventory management strategy in place to deal with it.

Here are a few tips to help you manage surplus inventory:

Assess Your Current Process

Assessing your current process means taking a close look at how extra inventory is generated in your business.

Do you have a lot of returns? Do you produce more than you sell? Once you understand where your surplus inventory comes from, you can start to put processes in place to prevent it from happening.

For example, if you have a lot of returns, you might want to put a return policy in place. Or, if you produce more than you sell, you might want to adjust your manufacturing process.

Get Organized

A good inventory management system will help you stay on top of what you have in stock, where it’s located, and how much it’s costing you.

There are a number of ways to get organized, but one of the simplest is to create an inventory spreadsheet. This can be as simple or complex as you need it to be, but at a minimum, it should include the following information:

• Product name
• Product SKU or ID number
• Quantity on hand
• Location
• Date acquired
• Acquisition cost

Once you have this basic information, you can begin tracking and managing inventory more effectively.

If you want to get a little more sophisticated, include things like expiration dates, reorder levels, and minimum quantities. This will help you keep track of items that need to be used up quickly and ensure you never run out of the products your customers need.

You could also establish dedicated surplus inventory storage. This could be a specific room, shelf, or bin in your warehouse. Having a dedicated surplus space will help you keep track of what you have and make it easier to sell or donate items when they’re no longer needed.

Unload Any Surplus Inventory

If managing inventory is not an option, the next best thing is to unload it before it goes bad and leaves you at a loss.

There are several exceptional strategies that will help you sell all that inventory clogging your warehouse. Some of them include:

Offering Persuasive Incentives to Your Customers

The key to surplus inventory management is to get rid of it without taking a loss. And one of the best ways to do that is by offering incentives to your customers.

For example, you could offer a discount on future purchases, a free gift with purchase, or even a contest. The goal is to make the surplus inventory so irresistible that your customers can’t help but buy it.

Sell in Bulk to Resellers

Resellers will be happy to buy your surplus inventory at a discounted price, provided they can resell it for a profit.

This is a great option if you have products with long shelf life or if you sell items that are popular among resellers. To find potential buyers, try searching online for companies that specialize in surplus inventory management.

Bundling Items

Customers love getting a good deal, so bundling items is an effective way to move extra inventory quickly.

For example, if you have a surplus of two products that are often purchased together, you could offer them at a discounted rate when bought as a set. This is a great way to increase sales of both products while getting rid of the inventory.

Marketing Excess Inventory

You can also market your surplus inventory to specific customers who are more likely to be interested in it. Advertise your discounts and ensure potential customers are aware of the deals you’re offering.

You can do this through social media, email marketing, or even just by putting up signs in your store. The more people who know about the discounts, the more likely you are to sell the products.

Donate to Charity

Finally, donating to charity is a great way to get rid of it and also help out a good cause. Just make sure that you keep track of what you’re donating so you can take the appropriate tax deductions.

Invest in Technology

Technology can be an inventory game-changer. It’s important to have an integrated system that gives you real-time data about what’s happening in your warehouse.

For example, if you use Salesforce for your CRM, there are a number of apps that connect to it and provide inventory management capabilities. This type of integration can automate many tasks and give you better visibility into your inventory levels.

Other tech solutions to consider include:

• Radio frequency identification (RFID) tags
• Automated storage and retrieval systems (AS/RS)
• Warehouse management systems (WMS)

Each of these solutions can help you improve the accuracy of your inventory counts, which is crucial for surplus inventory management. Also, consider getting one of the best inventory apps that’ll give you access to your inventory on the go.

Manage Surplus Inventory Like a Pro

By following these tips, you can manage your surplus inventory more effectively and avoid some of the common pitfalls. Surplus inventory can be a valuable asset, but only if managed properly.

Keep track of inventory levels, rotate stock frequently, and don’t be afraid to sell surplus items at a discount. With a little effort, you can keep your inventory under control and make the most of it.

Did you find this article helpful? If you did, check back soon for more great tips and tricks.