A company plans for a great sales quarter, or even year! Maybe they have a hot new product capitalizing on the latest trends, or maybe they’re bringing back an old bestseller. They’re expecting record numbers. And then…a global pandemic hits.
Sound familiar? Thanks 2020!
Amidst the fallout of COVID-19, an unpredictable market and blown forecasts have been detrimental to businesses seeking to maintain level profits. But when a warehouse is filling with slow and obsolete moving inventory or SLOB, it can be hard to see how to deal with growing supply and seemingly shrinking demand.
However, there are many options for how to handle SLOB. A trusted logistics partner like DRS Product Returns can offer progressive solutions on dealing with COVID-19 related inventory imbalances. With these, products can get set on the path of least resistance to moving once again.
Liquidation
Liquidation is generally the first thought when trying to contend with SLOB. And with good reason! Though sale prices are usually lowered, it can still boost profits, and it clears out warehouses.
Though liquidation can seem simple, partnering with an experienced logistics company can help make the process a breeze. Building relationships with and verify the trustworthiness of different distributors takes dedicated time and effort; a logistics company already has a network of trusted distribution partners.
At DRS Product Returns, we vet our partners carefully to ensure quality distribution and the maximizing of profits for our clients. Our network reaches nationwide, and we have years of delivering industry-leading recoveries to our clients.
Repackaging, Rework, or Refurbishing
Turning to liquidation to handle SLOB is a great option, but it’s not the only one. Sometimes, a slight variation is all that’s needed to assist in moving inventory. Offering different packaging, a slight alteration to the product or a small touch-up can take inventory from warehouse floors to store shelves to consumers’ hands.
DRS Product Returns has extensive resources and experience in product rework. We customize every process to serve each client’s needs, no matter how niche. Thanks to our unique reverse logistics system, we have the experience to provide analyses of what reworks may be needed as well as the resources to get those reworks done.
Repurposing
Companies are learning more and more that a strong green initiative can help their internal company culture as well as their marketability. Repurposing SLOB is a smart way to serve an eco-friendly mission while dealing with excess inventory.
Green initiatives shouldn’t just consist of environmental streamlining of the manufacturing processes (though that’s great too!). Looking at how products can be repurposed so as to stay out of the waste stream for longer is a great step to take.
Logistics services like DRS Product Returns offer great tools for how to repurpose SLOB. We undertake an extensive repurposing assessment on our client’s product lines, looking for ways companies can extend the lifespan of products. The hope of successful repurposing of SLOB is twofold; one, to shift the company’s inventory and two, to help the Earth and improve a company’s eco-friendly mission.
Donation of Items
Donation may seem counterintuitive when thinking about SLOB, but it can be extremely beneficial, both for companies and their communities. Proper donation to approved 501©(3) nonprofits provides deductions and credits come tax season, and it helps in building strong community and nationwide relationships.
At DRS Product Returns, we have an extensive network of legitimate charities and nonprofits that we have spent years building relationships with. We help our clients determine what kind(s) of organizations might benefit most from their donations, and then we assist in arranging successful donations that lessen inventory and build company morale.
Scrapping and Disposal of Items
Sometimes disposal is the only option when it comes to SLOB. However, there are ways to go about it that are more effective than others. While it may seem like simply getting rid of inventory is the only thing there is, a variety of opportunities are present in scrapping and disposal of items.
A logistics service knows the ins and outs of the different ways to minimize disposal costs. DRS Product Returns offers advice on how to reduce the weight of items disposed through an effective scrapping process. Providing this alternative makes it easier to balance profits and losses, even when products are ultimately getting disposed.
As the world continues to change and adjust during and after the COVID-19 pandemic, we have to accept that the prediction of markets, sales, and production will be uncertain. Determining the best options for contending with slow and obsolete moving inventory can help companies stay afloat during this uncertain time. Building a successful partnership with a logistics service like DRS Product Returns can help take some of the pressure of SLOB off and allow greater focus on what really matters: maximizing the life cycle of your product.