Here's how you can manage inventory obsolescence and reduce write-offs.

Reorder Point - A trigger point to initiate purchase process A stock level that indicates need to purchase further fresh stock - is called Reorder Point. Basically when the Inventory Level reaches the Reorder point, a new PO should be placed to restock the material for further consumption. Reorder point is an important factor that affects the MRP.Well, it's an alarm that helps to place new PO. In the ERP system, when the stock level for any material reaches its Reorder point, an alert is issued to the Material Controller to raise a new PO asap. Without an accurate Reorder point, the purchase process may get delayed leading to production hamper by material shortage, or vice versa.

Many a time, we take big bets on seasonal inventory. Say for instance, liquid concentrates for the summer. We take huge quantities of stock, assuming healthy demand. But if the consumer preference has shifted to something else, then we'll be left with a pile of stock whose sell thru rate would drastically drop post the summers - leaving you with a lot of unsold inventory. Hence it's important to phase out buying in such a way that the risk is minimal. Keep observing trends and competition activity such that you can also match / replicate the market offerings.

To manage inventory obsolescence effectively and reduce write-offs, consider implementing these strategies: 1. Monitor inventory regularly. 2. Forecast demand accurately. 3. Implement dynamic pricing. 4. Negotiate flexible terms with suppliers. 5. Rotate products efficiently. 6. Diversify product offerings. 7. Utilize liquidation channels. 8. Use inventory optimization tools.

1. Sales Data Analysis: Regularly analyze sales data to identify trends in customer preferences and buying patterns. Spotting declines in demand for specific products can be an early warning sign of potential obsolescence. 2. Market Research: Stay informed about industry trends, emerging technologies, and potential disruptions that could impact customer demand for your products. 3. Customer Feedback: Actively solicit customer feedback through surveys, focus groups, or social media monitoring. Understanding customer preferences helps you adjust your inventory accordingly.

Historical data is just one of the levers in predicting future demand and even this might not be foolproof. The market dynamics, competition, availability, consumer preferences - all of these factors could throw the inventory planning accurate offtrack as they are dynamic and can't be replicated from yesteryear. Hence historical sales data must only be accepted as a guidance and not as a bullet proof method of future sales. Keep the planning nimble and agile and account for multiple corrections along the way.

Fazer uma análise pontual de vendas do período anterior e observar o momento econômico atual para ajustar a compra, evitando rupturas ou excesso de estoque.

1. Schedule reviews: Establish a regular schedule for reviewing your inventory levels, particularly for slow-moving items or products nearing their end-of-life cycle. 2. ABC Analysis: Classify your inventory using the ABC analysis method. This prioritizes focus on high-value (A) items that are most susceptible to obsolescence while allowing for less frequent reviews of low-value (C) items. 3. Identify at-Risk Products: Proactively identify products at risk of obsolescence based on declining sales trends, approaching expiry dates, or changes in customer preferences.

Sistema de gerenciamento de estoque já fazem o controle de estoque e validade, porém nada impede que sejam feitos inventários esporádicos para corrigir falhas operacionais.

1. Negotiate Lead Times: Negotiate flexible lead times with suppliers to minimize the risk of getting stuck with excess inventory if demand forecasts change unexpectedly. 2. Just-in-Time (JIT) Inventory Management: For predictable demand items, consider implementing a JIT inventory management system to reduce storage costs and minimize the risk of obsolescence. 3. Order Optimization: Optimize your ordering quantities based on accurate forecasts and historical sales data to avoid overstocking on slow-moving items.

It's important to realize the complex pricing of materials and goods. Purchasing an end of life quantity might seem irrelevant, but if it's a product that requires a much longer lead time than what you're manufacturing or selling, the peace of mind that comes along with a quick turnaround is a competitive edge that you can leverage in contacts

Sistema de gerenciamento de compras cumprem essa tarefa do pedido automático, porém devemos atentar para os produtos com validade curta e fazer distribuição para as lojas evitando que vença nos depósitos.

Pricing is one of the most important tools to avoid inventory obsolescence. The cost of unsold inventory is higher than the cost of discounted inventory. Hence businesses take the call of liquidating slow moving stock at deep discounts such that it reduces their inventory carrying costs, frees up space to store/buy something else and helps the cash flow running. Consumers might often wonder how someone could offer such deep discounts on such products. It's mostly a case of slow moving inventory which is eating away their business and hence the retailer has decided to get rid of the same. Pricing has to be dynamic and in parity with competition.

Baixa de preços gradativa afim de não perder a margem de venda, comprar de acordo com a demanda, implementar promoção com outros produtos, expor os produtos com mais agressividade.

Implementing an inventory management system with real-time tracking, automated reordering, and data analytics can identify sales patterns and reduce obsolete inventory. Conducting periodic physical inventory counts and comparing them to recorded levels can identify discrepancies and take proactive steps to reduce obsolete inventory. Implementing accurate inventory forecasting, demand forecasting, and product categorization can improve inventory accuracy and help avoid obsolete inventory. Businesses can sell or donate obsolete inventory at discounted prices or return them to suppliers for refunds. Implementing measures as reviewing and updating inventory policies, enhancing inventory visibility can help prevent future inventory problems

To manage inventory obsolescence and minimize write-offs, adopt proactive strategies such as regular inventory audits to identify slow-moving items. Implement just-in-time inventory management to reduce excess stock. Utilize forecasting tools to anticipate demand fluctuations accurately. Offer promotions or discounts to sell off aging inventory. Establish clear communication channels with suppliers to adjust orders based on market trends. Consider donating obsolete items for tax benefits or recycling to minimize losses. Regularly review product lifecycles and adjust procurement accordingly. By staying agile and proactive, you can mitigate inventory obsolescence and minimize write-offs, preserving profitability and efficiency.

Following is the bare minimum steps you can take to effectively manage inventory obsolescence, reduce write-offs, and optimize your inventory management processes. - Regularly review inventory to identify slow moving items - Implement FIFO and EOQ to optimize inventory management. - Monitor product life cycles to plan for obsolescence and use clearance strategies to remove obsolete inventory. - Improve forecasting and demand planning to reduce overstocking. - Consider product refurbishment or repurposing to extend product life. - Adopt a JIT inventory system to minimize inventory levels.

Depending on the category of business, your terms of supply become the most important lever to manage inventory obsolescence and write offs. If you are operating on an Outright model, then the entire risk passes on to you as a buyer / inventory manager. But if you are operating on a Sale or Return model or Stock Correction model, then the liability of the inventory is split between the supplier as well as the buyer. This way, you could redeem some of the inventory from being unsold and replace it with fast moving inventory, thereby keeping the cycle moving.

In managing inventory and reducing write-offs, I've implemented a strategy that integrates several key practices: Accurate Forecasting & ABC/XYZ Analysis: Utilizes detailed analysis to categorize inventory, focusing resources efficiently. Product Lifecycle Management: Regular lifecycle reviews anticipate demand changes, adjusting inventory strategy accordingly. Pre-S&OP Review Sessions: Aged inventory is reviewed with sales and leadership before S&OP meetings to identify proactive management opportunities.

I would increase inventory turns or accept the possibility of stock outs in order to minimize the risk of obsolescence. Maintain open communication links with the company managers that influence the life and times of the inventoried items. JIT is effective but so is outsourcing some inventory items to a third party. Be flexible and resourceful in utilizing the various tools to maintain profitability- do not be afraid to utilize uncommon pairings of the tools.