When inventory liquidation is a bad idea

You have excess or slow moving inventory and you want to get rid of it. When does this make sense and when does it not make sense?

Some industrial, mechanical, or machine parts should not be discontinued or liquidated even if the sales of these products is slow. Any part that is vital in the functioning of a machine, needs to be available to customers if and when they need them. One part that is broken on a complex machine can make the machine unusable.

These critical parts need to be kept for possible use by customers or distributors since that is part of servicing the customers and machines that are sold. If you think it is costly to keep slow moving critical inventory, please compare that to doing a new manufacturing run for that part.

Besides being expensive and generating MORE slow moving inventory, don't forget time. Many critical machines cannot be down for long periods of time.

A better idea is to use a GPS inventory bank for critical parts... They store the parts for you and you can access them when you need them for a minimal fee. You don't pay for storage of inventory, you only pay if you need a critical part.

See the inventory bank info on this page for more info