• Mark Ani 22/03/2018 12:47PM

    In Inventory Management

    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.

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  • Answers (2)

  • Len Pannett

    27/03/2018 11:29PM

    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.

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    Mark Ani This is helpful Len. Thank you

    28/03/2018 08:27PM

    Benson Banda To echo Len's sentiments, the problem statement is the obsolete material you have laying in the warehouse. You can consider either selling back to the supplier of course at the reduced rates but these are better managed if initially the close are enshrined in the contracts. More also to avoid any obsolesces in future have a system in place that will monitor available stock against raised purchase requisitions, this will definitely reduce on excess stocking of inventory.

    04/04/2018 03:27PM

    Mark Ani Thanks Ben, I appreciate your input.

    10/04/2018 01:57PM

  • Charu Sharma

    27/03/2018 06:28AM

    Hi MARK,
    I think you need to work on inventory control techniques, so that you don’t have to store them for a long time.

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    Mark Ani Thanks Charu.

    27/03/2018 08:52AM

    Mark Ani Please can you recommend some inventory control techniques to me.

    27/03/2018 08:54AM

    Charu Sharma Sure, well to avoid spoilage and dead stock you need to make accurate demand forecasting and then you can you use techniques like cycle counts. To know more about the same, I would suggest you to go through these tips : http://holisollogistics.com/increase-warehouse-operational-efficiency-in-7-steps/
    Hope this would help you.

    28/03/2018 05:40AM

    Mark Ani Thanks Charm . This is useful. My question is actually regarding materials that already obsolete.

    28/03/2018 08:22PM

    Mark Ani Thanks Charm . This is useful. My question is actually regarding materials that already obsolete.

    28/03/2018 08:22PM

    Charu Sharma Mark , I don’t know what kind of inventory you have stored there but If possible you can think about to either convert them into new product or recycling them or liquidate them.

    30/03/2018 07:50AM

    Mark Ani Thanks Charu. I appreciate your help.

    03/04/2018 09:48AM

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