What can we do to Obsolete Inventories that tie down funds in the stores and warehouses?.
I manage a district operational stores for my organisation and we have a lot of materials that has remained 'non-moving' for many years. New inventions have made these materials obsolete to our operations and they take up so much space, attract dust along with cobwebs.
How can we do to these materials because our operational funds are tied down.
First thing to do is ensure that there isn't a constant stream of materials constantly becoming obsolete, or at least minimise that flow. For the materials that are already obsolete, much will depend on what they actually are. In most events, having a record of what the items are, their condition and some measure of initial price/cost to inform depreciation and current value, will be invaluable. You can look to offer them to others in your organisation, sell them through an agent to other similar organisations or, if all else fails, dispose of them. Obsolete items lock up capital, cost in storage and personnel (and occasionally insurance) and should be minimised.
I think you need to work on inventory control techniques, so that you don’t have to store them for a long time.