For any business there is a fine balance between survival and success in the first 5 years of existence. The cost of holding, storing and managing inventory is difficult to overlook or ignore especially if some of the inventory doesn’t perform as well as anticipated. Write-downs, write-offs, non-liquid capital, storage costs and Inventory services costs can and will be an issue for any business at some point.
The cost of holding, storing and managing inventory is difficult to overlook or ignore especially if some of the inventory doesn’t perform as well as anticipated. Write-downs, write-offs, non-liquid capital, storage costs and Inventory services costs can and will be an issue for any business at some point.
While inventory costs are different for every business type and model, the purchase of inventory and its subsequent handling are one of the biggest expenditures a small business makes. Carrying inventory has a ripple effect on almost every aspect of a business. Businesses can choose liquidation to eliminate the inventory costs but this comes at a significant loss for the business.
“The good news is that when a write-down happens when stock has not sold and its market price has fallen below what it was purchased for, it doesn’t mean that the item itself is worthless; it is no longer valued at its original purchased price.
“Thankfully Active offers a number of ways to recover the lost value. We offer our clients the opportunity to eliminate their ongoing costs and in many cases recover the value of excess stock” commented Cameron Swan, Managing Director at Active International Australia.
Restoring value to excess stock and expand distribution – here is how we help clients find new clearance distribution channels, whether international or local, for their excess stock.
A large FMCG client had stock parcel and they needed a solution to minimised the loss to the business and an alternate distribution channel to restore value.
The excess stock was sold through Active’s local remarketing network while keeping in line with the client’s remarketing restrictions. This solution delivered the strong results helping the client to avoid taking a loss for the excess stock and reach their target price.
“With a global footprint across 14 countries, we are able to offer remarketing opportunities within Australia and overseas. Our strong portfolio of partners and remarketing channels makes our offering second to none.
“Recently a large pharmaceutical company was faced with a large excess inventory of vitamins they needed clearing. The challenge was the number of restrictions which were in place such as restricting the product from being be sold within Australia to avoid cannibalising current market in stores. We were able to offer remarketing opportunities for the excess stock to be sold in China providing the client with the full target value of their product. The stock was shipped straight from their warehouse to the end buyer in China freeing up space in their warehouse to make way for the new vitamins. The problem was solved in one single transaction delivering the client a real result to their challenge” Mr Swan explained.