Ways to get rid of excess stock - WorldOfChemicals

Liquidating Non-Moving Chemical Inventory

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

At present times, chemical companies are seeking new ways to liquidate their excess inventory. Inventory comprising of chemicals and equipment are considered as a fixed cost or a sunk cost, which cannot be recovered after investment. Like shares of a company, that has been bought. They have no real monetary worth until they are sold and reverted to cash. How the value of chemical inventory depreciates with time.


Role of Liquidation in the Chemical Industry


Liquidation of excess chemicals stock and used equipment by chemical companies may seem to be less lucrative. However, it is a more prudent approach to liquidate the surplus stock rather than keeping it redundant at the warehouse. Many chemical distributors are emotionally connected with their chemical inventory and anticipate potential buyers to walk in and buy their dead chemical inventory. The odds of occurrence are very less and cannot be depended upon, as with time the inventory's value would plummet further.

How to liquidate excess stock?

The objective of inventory liquidation is to get rid of surplus stock at the best possible rate or least expense. Liquidation of surplus stock can be accomplished through the following methods:

 

1. Inventory Balancing

Chemical companies with multiple branches can save money and resources by transferring their dead stock to another branch location, where it is needed. This is feasible when the cost of transportation is minimal and only a small fraction of the inventory's value. This practice is known as inventory balancing and is being increasingly adopted by chemical manufacturers and distributors. Chemical manufacturers and distributors with multiple branches are efficiently and effectively balancing their inventory between different warehouses multiple times a year. 

 

2. Price Reduction 

Chemical companies can speed up the process of clearing their excess stock and used equipment by bringing their prices down, like the strategy implemented by department stores.

 

3. Incentivize Sales Personnel 

When salespeople are motivated and provided with proper incentives, they tend to perform better and deliver the best sales results. This subtle approach is instrumental in accelerating the clearance of excess stock. 

 

4. Advertise

Advertise the excess chemical stock and used equipment to other suppliers. Surplus stock can be liquidated through placing ads in chemical industry publications such as magazines and newsletters, where excess chemicals and used equipment can be listed. 

Online chemical portals that specialize in stock clearance, allow you to sell chemicals and equipment from your excess inventory at a reasonable cost close to the actual cost. At www.worldofchemicals.com, you can buy and sell excess stock, manage sales and purchase, make your brand visible and create a new customer base.


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