EXCESS INVENTORY, HOW TO DEAL WITH IT?

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EXCESS INVENTORY, WHETHER IT IS A,B,OR C CATEGORIZED PRODUCT SEEMS TO TIE UP MUCH OF OPERATING CAPITAL. WHAT ARE SOME STRATEGIES TO DEAL WITH IT?

-- GILBERTO (AMERESKIES@AOL.COM), February 01, 2001

Answers

Since excess inventory is the result of prior decisions, planning, forecasting, purchasing, marketing, selling etc., the damage has been done. Main strategy is to (1) determine how and why this happend in the first place and (2) correct it. You may want to look at forecasting, sales and purchasing to start.

-- (mjlsps@msn.com), February 07, 2001.

Since excess inventory is the result of prior decisions, planning, forecasting, purchasing, marketing, selling etc., the damage has been done. Main strategy is to (1) determine how and why this happend in the first place and (2) correct it. You may want to look at forecasting, sales and purchasing depts. to start.

-- Michael Lewis (mjlsps@msn.com), February 07, 2001.

Hire an Industrial Engineer. They deal with all issues of efficiency and cost savings and are the most appropriate person to deal with production planning and forecasting, etc. IE's are the people that scientifically manage the enterprise. You know all those buzz words you hear all the time: JIT, Re-engineering, Demand Flow, Optimization, Lean Manufacturing, etc., these are all topics that an IE deals with.

-- Vivienne (v0203@hotmail.com), February 08, 2001.

There are companies that specialize in selling excess inventory. You'll probably get paid dime on the dollar, and taking the loss may be viable solution. I agree with the other comments about getting to the source of the problem so it doesn't keep repeating -- and that's a much bigger issue, involving how people are sharing info in your company.

I ran across a company in San Jose, CA years ago, called Asset Recovery, Bill H. was president. He may not be your solution, but he might connect you with one. I don't even know if they are still around, but a websearch should tell you.

Good luck. Camille

President, Work In Progress Coaching ~Unleash your potential~ office: (831) 685-1480

-- camille a. smith (camillesmith@sbcglobal.net), January 29, 2002.


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