How to Fix Common Inventory Problems – Old Stock | Expiring Stock – old stock | expiring stock | inventory problems
How to Fix Common Inventory Problems – Old Stock | Expiring Stock
Let’s look at a couple of situations that frequently happen in your operations. Old products: your company has too many old products on the shelf, whether you’re not using them, not sending them out, or you’ve completely forgotten about them, don’t know about them at all, or you have already forgotten maybe they are going to expired very very soon.
What should you do to fix all these problems, you’ll need to have 2 things here. First, have a list of Stock Aging, so this stock aging you should be able to tell how long a product has been lying in your warehouse based on the information. You can analyze the items in your store based on this information and then liquidate them.
From the stock aging, you can do the following step on how to liquidate them:
1. Make those things available as a discount item. alright sell it as a discount item
2. Package all these items in a bundle to resell
3. Give away as a freebie or an incentive for promotion
4. Make a sale announcement at your warehouse.
5. Return to your supplier for a refund or credit if you have the option or agreement with your supplier
Besides this aging report, if your companies are dealing stock which they have expiration date expiration items, get the report to give you those items going to expire very very soon on the shelf. So what can you do now, business may donate all this stock to charity. not only this also will dispose of all of the items going to expire in your warehouse but it can also be eligible for a tax deduction to your profit and loss account for the cost of those products, and increase the brand name and reputation of your company.
You can simply identify what old stock, obsolete purchases sitting on the shelf, and what action to take by using all these reports and steps. Understand that this could affect the increase in inventory write-offs to your P&L account; just because you don’t see it doesn’t mean it won’t happen. This occurs as a result of the accumulation of long stock sitting in your warehouse overtimes, as well as poor inventory management.
So, once you’ve identified and cleared all these issues, you’ll be more vigilant the following time to prevent all this excess purchasing. The next time you create an aging or expiration report, you should have a lot more to control of your inventory.