An inventory is basically a list, usually used in tracking details of something. For instance, many businesses have an inventory of items that remain in their property and have not yet been sold, list of general merchandise products or a list of items of a shipment they ordered. The purpose of the inventory is not only to keep records, but in the modern era, the inventory has become a list of items you hold as assets to the company or business.
An excess inventory is a list of items that are not required to support the development and distribution needs of the company. Excess inventory descriptions include stock above zero, over a described safety stock stage, or described length of time supply.
Excess inventory is also known as “dead inventory” or “obsolete inventory”. Having too much of inventory should act as a warning sign for companies, since this means they have no track over the production of their materials, or their products are not selling well. Usually, excess inventory is the result of any of the following:
1. Purchasing above what is necessary;
2. Plummeting down of the demand rate, thus decrease in sales; and
3. Improper management
There can also be other causes than these. One good solution for excess inventory is to find general merchandise liquidators. The business can sell the excess inventory items to the merchandise liquidators, and help bring the inventory list back to balance.
The advantage of transacting with general merchandise liquidators is not only will you eliminate the excess inventory items on your list, but you will be able to sell them through these companies, so you get extra cash for excess items, instead of keeping them.
Most companies have extra inventory because of quota of sales that has not been met for a certain number of days. For instance, if the company was selling one hundred items for 30 days, and only sold 75, the excess would be added to the inventory list for the next thirty days. The company may opt to keep these and continue selling them as back-up stock, but in case they are targeting a certain value, they can choose to sell these to general merchandise liquidators. The general merchandise liquidators would then re-sell them, usually as a wholesale package to other businesses or individuals. The general merchandise liquidators can also ask for bidding online for the items.
If the company has not previously had a record of surplus inventory, they may not know how to look for good general merchandise liquidators. They can usually ask their suppliers for recommendation of general merchandise liquidators.
General merchandise liquidators can also be found online. The company may also ask the finance department of the government for a list of accredited and recommended liquidators to ensure that they would not be scammed.
The company may also opt to keep the excess inventory items, and keep selling them until they run out of supplies, and stop purchasing until the operation is back on its level.