Turning Obsolescence Into Cash
Posted on 29th October 2018 at 14:58
Holding obsolete products in stock for those "Just in Case" moments is not new. We have all heard of the "Hope is not a strategy" phrase and holding onto stock in the hope that it will one day be needed again fits into this well.
Obsolescence has been defined as a process whereby goods or services no longer meet the needs of the current user. And there are a number of ways in which a product comes to be obsolete. Changes in production methods can cause technical obsolescence; Technological advancements can result in planned or style obsolescence (who remembers mini disc players?).
But all obsolete stock has one thing in common - it ties up cash. The best way to release the cash is to sell it and get the highest price possible for it. Second hand sites like Ebay may well provide an opportunity to do this, or even approaching your customer base directly who have previously taken these items. Another way is to look to recycle them - cardboard boxes can be bailed and there are companies that will buy it from you.
Pro Outsourcing Ltd can help you analyse your stock to identify your slow moving or obsolete stock and discuss with you options on how to release the cash that is tied up.
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