2012-10-01 18:42:35 - ITS Logistics offers solution ideas when dealing with leftover inventory at the end of the season.
When the end of a season rolls around, think outside of the box. Time and energy invested in selling last season’s stock is a waste of valuable resources, so come up with creative ways to get it out of your hands, and off your shelves.
No one wants to have leftovers at the end of the season, but it’s a reality. Unwanted inventory wastes cash by taking space from moneymakers, and distracting your focus from the newest in-season items. Not to mention the opportunity costs of redirecting your invested capital, taxes and insurance, as well as the labor to maintain the inventory, amounts to a sizable expense. ITS Logistics’ expert Kasia Wenker shares some tips on how to make a
smooth transition into a new season:
•Move to international markets – If it’s not a popular item in your national market, it might be elsewhere. Shifting the target market allows you the chance to sell a product that might not have reached its full potential within its intended demographic. Countries on the other side of the globe, where the weather is opposite, are the perfect focus for an old seasonal product. A third party logistics (3PL) company can help you make that transition easily, and without much investment. If you utilize a 3PL to place the inventory overseas, you eliminate the need to staff an additional market.
•Donate – Make sure you’re realistic - don’t sit on product that you can’t sell. Leverage it in another way. Donations can boost a company’s reputation, and provide good PR opportunities. Find a way to make the donation tax deductible, so you turn a loss into a way to offset your income.
•Recycle – Go green. Break down the product and use the pieces for another item, or recycle it for the good of the planet.
•Destroy – If none of the above recommendations apply, destroy the product. It will be more costly if it is taking up valuable warehouse space, than if it disappears permanently.
Wondering how you figure out which is the best solution for you? A 3PL like ITS Logistics (www.thesportsrunner.com) can help, especially in the seasonal world of sporting goods. Partnering with experts in the field will allow you gain easy access to metrics such as inventory age, inventory performance, and inventory stored per weeks of demand. If you realize you are sitting on 50 weeks of inventory, the decisions start to seem more obvious. The 3PL can then handle the reverse logistics – processing the inventory, and arranging to recycle, destroy or donate the product for you—which eliminates the hassle.
ITS Logistics: www.thesportsrunner.com
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Based in Reno, NV, ITS Logistics is a warehousing, distribution and fulfillment company that helps companies distribute goods nationally and globally with superior performance. Please visit www.thesportsrunner.com
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