The nature of a product is that its popularity will most likely come to an end at some point. This happens when demand for a particular product decreases, which puts it at the final stage of its life cycle. When it reaches this stage, it could turn into a liability.
If this happens with a product at your supermarket and you don’t keep track of the demand level, it could end up piling up on your shelves and storeroom thanks to the low number of purchases. This obsolete product creates less space for new products that are more valuable for your business.
Many small and medium-sized businesses don’t have a quality inventory management system that can help them resolve the issue of obsolete stock.
Managing Obsolete Stock
Here are some inexpensive methods that you can use to avoid obsolete products from piling up in your inventory:
Liquidate the Excess
You might think that it’s possible to profit from obsolete stock in the future or that the product’s relevance may return. This is, unfortunately, not likely, as new products are coming out faster than ever before. These new products will almost always take the place of older ones, even if you develop a marketing scheme to try and sell obsolete stock.
It will benefit your supermarket to sell what you have left in obsolete stock before it takes up too much space.
Understand Stock Management
It’s a good idea to avoid excess stock in general if possible because the act of liquidating can create a small loss for your supermarket. By managing your inventory correctly from the very start and putting stock management policies into place, you can avoid overstocks as a product loses popularity.
Have an Arsenal of Strategies
Before obsolete stock can collect, put a marketing strategy in place. By having a strategy ready, you can avoid having to come up with something at the last minute and get ahead of your competition.
Use Inventory Management Software
Inventory management software is a convenient and efficient way to ensure that your inventory is taken care of. It digitises and automates the process and helps your supermarket stay on top of things when it comes to what you have in stock.
Many new POS systems come with excellent stock control programs which make it easy and even automate managing your stock. If you need help finding the best POS system for your supermarket get in touch with us.
Obsolete Stock at Your supermarket
By putting these tips into place, you can avoid obsolete stock at your supermarket and save yourself the headache of remedying the problem.
To learn more, contact IndiHub and let us know how we can help.