Excess or overstock inventory is a common problem in manufacturing
It is estimated that up to 15% of all inventory is never used. The result for the company is;
- loss of warehouse space
- unused materials contributing to waste
- a write-off or loss in the companies books
Most businesses buy inventory based on trends and history. Trends fluctuate which in turn may cause history to not always be the best point of measurement. Another issue is the cost of raw materials that can (and normally do) fluctuate throughout the year.
Because of this manufacturers are now trying to make their purchases based on their short term needs. This practice has its own set of problems. A company may purchase a larger than needed quantity to benefit from a dip in raw material pricing. A quantity may be decided upon based on a “best price” attached to a minimum quantity. Both of these scenarios can often lead to a surplus stock situation.
Get rid of your obsolete and excess inventory !
There are a few options on how you can get rid of your excess inventory. The obvious is to just dispose of it according to the waste management laws and write off the inventory in your books. The cost of doing this is greater than the actual $$ amount in the books. Think of all the resources involved in storing this inventory for an extended period of time. Think of the cost to the environment with yet another contribution to a companies carbon footprint.
A better solution is to sell the excess inventory to another manufacturer. But how are manufacturers going to do this? They do not have the time nor the resources to find a buyer.
Now there is the perfect solution
With BizBiz Stock companies post their excess inventory on the marketplace. Other manufacturers/businesses use the Marketplace to find the inventory they need. This solution gives companies the opportunity to actually gain revenue on inventory that would have most probably ended up as a write-off. A gain in revenue, reduction of waste and space opened up.
BizBiz Stock is the industrial Marketplace where you buy and sell surplus inventory.
At the same time the company that makes the purchase is no longer subject to minimums and in most cases can purchase the inventory at a better price. In many cases, the two companies are not that far from each other once again saving the on the carbon footprint.
There needs to be a solution or manufacturing businesses will continue to waste time, money and resources storing the surplus inventory. With the pressure of tight margins, the need to optimize warehouse space and productivity a solution is more important than ever.