In a company that operates in distribution, one of the most heartfelt issues is warehouse management. The two main issues that insiders may encounter are stock-out and excess stock. Opposite issues, but both very serious, which require, therefore, an excellent internal logistics organization or entrusting the task to professionals in the sector.
- The stock-out has as a consequence a virtual cost related to the lack of revenue of the goods requested by customers but not available in stock.
- The excess stock causes theaccumulation of useless items that take up space in the warehouse, as well as being a current expense, already borne by the company, which will not lead to profit, but losses due to unsold.
Stock-out (stock breakage) can be effectively prevented by using several safe and reliable suppliers, who will ensure you a complete supply when you need it, not leaving you without the goods requested by the customers (binding the final customer to collect the parts, when possible) and maybe keep it on hold to a supplier-partner who will store it only for us (and we can verify it!). And maybe he will invoice it to us only when “we ask for it”?! It seems impossible but a serious partner, for example, gives to his customers this kind of service!
Before thinking about the method to be applied in case of accumulation of stock or excess stock that best suits your way of doing business, it is good to ask yourself some questions. For example, do I want to monetize quickly losing something in profit or do I prefer to monetize more but taking a long time knowing that time is money too?
- In the first case, the sale takes place for blocks of items with an average gain of 10% to 20% compared to the cost.
- In the second case, one item is sold at a time with a higher average gain (50/60%).
The profit percentages are purely indicative and vary according to the market. To avoid an accumulation of stocks, it is necessary to first look for the buyer through globally visible web platforms and, not taken for granted, through a partner who works with these platforms daily (thus avoiding surprises of hypothetical “unethical” buyers).
Surplus in stock? How to operate
The use of both methods (block sale of items and single sale) is an advantage over competitors. In case companies have excess stock problems, it is important to have a good partner who makes visible online the excess products that would remain unsold. Through global web-based platforms that specialize in electronic commerce, the partner of choice helps companies find the best buyers and significantly reduces the cost of managing their customers’ excess inventory.
An organized and precise distribution service
In addition to solving the problem of excess warehouses at their customers, serious and reliable partners also manage their warehouses in the best possible way.
So here are the steps that you should follow:
- search for the component desired by the customer through specialized platforms. While searching make the reading of the goods as if the warehouse was your own;
- simulate how long it could take to retrieve the items requested and how much the product could cost, including the shipping costs;
- in case of customer approval, proceed with the order;
- in the case of electronic products, the component warranty tests are a plus and therefore not discounted!
We at Electronic Partner are specialized in the independent distribution of electronic components, operating according to these logics and looking for the best conditions globally. We work with new merchandise, guaranteed by the parent companies or we search for 100% original rare or obsolete components, in brokerage mode using consolidated sources that guarantee us up to 1-year warranty and delivery from 5 to 7 days. Are you looking for a distributor or do you want to manage your excess stock? Contact us!