These days, zombies are all the rage from hit movies and TV series to popular toys and video games. And while it’s all good entertainment for sci-fi fans, it’s not so great for distribution companies that have dead stock lingering around, haunting your warehouse.
What is dead stock you ask?
It's all the unsold inventory that's obsolete, costing you money, and taking up valuable warehouse space that could be used, instead, to stock more of the products your customers actually want. In this article, we’ll share 5 ways to clear dead stock (zombie inventory) from your warehouse and free up space for inventory that’s alive, kicking, and making you money.
#1 Discount Dead Stock to Scary-Low Prices
If you have a bunch of inventory that you suspect is dead or dying, it’s time to move it out the door with creative discounts and promotions. Things like buy one get one (BOGO) or using a bundle strategy that combines older stock with some of your newer hot sellers can be an effective way of chasing away that zombie inventory.
Even if you clear old inventory at cost or slightly below, you’re avoiding a long drawn out drain on cash flow and added cost of storing all that dead stock that’s just taking up space in your warehouse.
Tip: a good inventory management system should alert you to inventory that’s either not moving well or nearing its expiration date.
#2 (Trick or) Treat Your Sales Staff to Incentives
Your sales staff probably likes the low-hanging fruit and prefers to sell the stuff that’s hot and almost selling itself. But calling attention to zombie inventory that isn’t moving out the door as fast as you’d like and incentivizing your sales staff to pitch in and help out is a great way to move dead stock.
Obviously paying a little extra commission is always a great motivator for your sales people to pay attention to inventory that has become a little pale and sluggish. But if you’re interested in some alternatives to just handing out cash, check out these 20 Creative Contest Ideas Guaranteed to Motivate Your Sales Team.
#3 Offer Dead Stock to the Grim Reaper (Liquidator)
Still having trouble moving that old stock even when it’s deeply-discounted or heavily incentivized? It may be time to call in the liquidator (aka Grim Reaper). An inventory liquidator can free up some space and rid your warehouse of the walking dead. Some will even remove your zombie inventory in bulk and sell it on your behalf in exchange for a piece of the proceeds.
See Also: What is Psychic Stock
#4 Sacrifice The Dead to Charity
If other options prove to be a “dead end”, it may be time to just unload that stock to your favorite charity that can almost certainly bring it back to life with an audience that can benefit. Inventory that’s obsolete to you may be a welcomed gift to others. Not only are you contributing to a worthy cause, your business may also qualify for a nice tax deduction if you contribute to charities that are listed as 501(c)(3) organizations (be sure to check with your licensed tax advisor).
#5 Breathe Some AIR Into Your Warehouse
Sure, oxygen is always good. But we’re actually talking about Advanced Inventory Replenishment (AIR). AIR is an add-on component for Microsoft Dynamics GP that provides all the tools and analysis you need to stock enough inventory to fill and ship customer orders quickly, but not purchase so much that you’ve got capital tied up in the warehouse and inventory that’s at risk for loss or obsolescence.
Because after all, the best way to avoid having zombie inventory and dead stock haunt your warehouse is to avoid letting it die in the first place!
AIR: Take a 5-Minute Video Tour
Take a look at this 5-minute video and learn how AIR for Dynamics GP can help you manage and clear zombie stock from your warehouse.
See Also: How to Prevent Inventory Fraud
