Holding excess stock provides zero benefits for your warehouse.
According to Manufacturing Business Technology, 15% of all goods are either returned or never sold in the first place, and a considerable portion of these products almost always end up back in the warehouse they came from. If you consider the average warehouse space, having 15% of excess stock will rapidly lead to limited free space which will quickly take effect on warehouse efficiency.
Here at Bray Solutions, we have a few tricks up our sleeve to ensure you are managing excess stock as productively as possible. In our previous blog, ‘How to make the most of excess inventory’ we discussed creative ways to get rid of overstock. In this blog, we share the practical ways to avoid holding too much in your warehouse.
Make the first move – remove overage.
Getting rid of excess stock is the crucial step to take before you can do anything else. Clear out the unwanted products to make space to streamline your warehouse. Like we mentioned in our previous blog, try selling on third-party sites such as eBay. Perhaps selling them at a lower price will encourage customers to purchase them on the third party site where it’s cheaper compared to your store. As long as products sell! Once this step is complete, the most challenging task is over.
Track and adjust
After the hard part is over, you should start to consider collecting data on the space you are left with after clearing. This is an important next step as it will ensure you prevent the issue of excess stock for good. Real-time data will give you the ability to improve your pick and pack, then ship process that impresses your consumers.
Make an assessment
After you understand what your immediate priorities are, you can plan for a full streamline. This includes anything from re-organising shelves and equipment to re-thinking warehouse procedures and technology.
An inventory can become easily overstocked when imprecise restock processes take place, often, quite easily, due to human error. Even an adequately trained workforce will have an off day. Thankfully, with today’s advancing warehouse technology you can put software in place to prevent mistakes from happening as often:
- Barcode verification – Barcode Verification is a process that checks the readability of your barcodes and improves order accuracy.
- Voice-activated picking software – increases pick speed.
- Real-time warehouse/asset tracking – ensures accountability for all workers and products at all times.
Invest in your business intelligence instead of inventory
Rather than overstock the warehouse, invest in warehouse technology. A good inventory management system can solve your problems, offering extensive control and insight over inventory. Use the power to your advantage and gain a better idea of inventory levels for risk-free replenishment.
Keeping track of trends
Stocking your warehouse without an idea of what is trending is poor practice. Blindly filling up a warehouse with inventory is a risk warehouses can’t afford to take. Do your research and make a note of what usually sells well. It is just as easy to run out of a favourite item as getting stuck with outdated stock.
The customer comes first
Customers come first, but inventory is vital to win them over. Pricing, shipping, quality, and more all come into consideration when impressing potential and future clients. Impress them with technology to estimate when they need replenishment products so you can stock your warehouse accordingly.
Eliminating excess stock can seem like an impossible challenge, especially if you are using out of date technology. Bray Solutions can take away the stress of handling warehouse worries so you can focus on selling your products and making your business a success.
Contact Bray Solutions to talk about your warehousing, fulfilment and retail logistic needs on +44 (0)1780 784875
“We would be happy to recommend Bray to other companies seeking a logistics partner in the UK .”
“phil&teds have been using Bray Solutions since January 2014 for 3PL [ third-party logistics ] services for the UK. Bray has provided us with a tailor-made logistics service that is responsive to changes in order demand. A service that uses the most cost-effective distribution options. Bray are a vital partner in working through the complexity of delivering products to large UK organisations such as Amazon, John Lewis and Mothercare to help grow our business.
We would be happy to recommend Bray to other companies seeking a logistics partner in the UK .”Neil Hammond