Instead of letting dead stock take up valuable warehouse space and sit on the balance sheet, sell it on mjvaluemart, a multi-vendor e-marketplace for unused MRO Spares. What to do with obsolete stock? Sell it on mjvaluemart As the value goes down, the costs of stocking dead inventory will outweigh its value. However, if there’s a change in technology and the inventory has run out of its usefulness it is best to sell them before its value further goes down. In some cases, having extra inventory, even at the risk of overstocking, makes sense. Decide whether to sell or hold on to inventory : Weigh in all the pros and cons of holding on to excess inventory.During the lean period, cut back on the stock. Cut back on the stock during the lean season: It’s important to know how much stock you will need in a given period.For this, you need to develop an effective strategy for maintaining and tracking stock levels in real time. Buy strategically : The best possible way to avoid excess stock that ages out of usefulness is to buy the right quantities of products.Here are some steps that you can take to avoid dead stock: Unless you sell dead inventory, you’ll lose the initial acquisition costs, including freight, duties and insurance. Ordering standard inventory for a lean season runs the risk of ending some of the MRO inventory ending up as dead stock.Īdopt a strategic approach towards buying and selling inventory: Dead inventory is a significant liability for businesses. Inaccurate demand forecast: It’s important to look at sales history to estimate reorder quantities.In such a scenario, items are most likely to expire or become technologically redundant. Ordering too much inventory at once may mean you’ll have more industrial spares than you need. Overstocking: When ordering stock, it is important to look at sales data and inventory turnover rate.Here are some common causes that can lead to dead stock: Getting an insight into these underlying causes can help you address the problem in the procurement phase. Understand the underlying causes behind dead stock: There are many underlying causes that contribute to dead stock.
MRO INVENTORY MEANING HOW TO
If you are constantly struggling with dead stock and can’t figure out how to avoid it, here’s a useful read for you: Having a smart inventory management system in place is important to regularly eliminate dead stock and make way for active inventory. When warehouses or storage rooms are cluttered with dead stock, employees find it difficult to find parts and products they need, wasting time and energy. Dead stock is bad for your business not just because it takes up valuable space but also acts as a bad investment.
Dead stock refers to any unsold items that are lying in the warehouse or storage rooms for a long time.
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