Wednesday, January 12, 2011

Liquidate All Slow-Moving Inventory?

You want to stock the products that your customers request most often in your warehouse(s). But what about products with sporadic sales, or no sales at all? A recent article (not by this author) suggested that you should discontinue and liquidate the stock of any product that is not sold or used on a regular basis. No exceptions. Clean them all out! Or so the author said.

But do you really want to do this? We don't think so. Most distributors and manufacturers should maintain a stock of some slow-moving products, and even products that have never been sold, in order to maintain a high level of customer service and enhance their corporate profitability. Why?
http://www.effectiveinventory.com/article43.html

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