Using WMS to Manage Old Stock
It is common for businesses to accumulate older stock for various reasons. Inaccurate inventory management, poor demand forecasting, and market trend shifts are often to blame for slow-selling items that linger on warehouse shelves.
Old products have the potential to become obsolete or expire over time while unnecessarily increasing your storage costs. Thankfully, warehouse management software (WMS) can help reduce inventory waste for brands.
Here are some tips for managing aging stock for online businesses using WMS.
Benefits of WMS Aging Stock Management
The primary benefit of utilizing a warehouse management system is minimizing waste and reducing storage costs. For instance, this would be particularly important for businesses selling perishable goods, as a WMS can track and prioritize aging stock before spoilage occurs.
By managing aging inventory with a WMS, you can identify older or slow-moving items and decide how best to clear them out, such as offering discounts. This reduces unnecessary storage costs and frees up space for more productive and less costly use.
Stock Rotation for Businesses Using 3PLs
Stock rotation is a strategy where older inventory is prioritized for use or shipment before newer stock. A WMS supports stock rotation by providing real-time data on your inventory. This helps 3PL users identify aging stock and prioritize it for picking and shipping.
WMS stock rotation for 3PL users may involve automated tracking, location management features, reporting about near-expiring items, and alerts when immediate action is required.
WMS data about stock rotation can also help you determine which items may need a sales boost or seasonal promotion to make room for new products coming in soon. Beyond rotation, a WMS helps you optimize warehouse space by identifying better storage configurations and placing inventory along accessible travel paths.
FIFO Inventory for eCommerce
One useful inventory management method is First-In, First-Out (FIFO), which focuses on pushing old inventory items out first. This method is advantageous in industries that sell products with expiration dates or specific date restrictions.
A WMS can help you stick to established FIFO goals by tracking older stock and moving it out first. FIFO inventory for eCommerce is also helpful for monitoring sales, determining profit margins, and calculating the costs of goods sold. More so, a WMS will help you assess your inventory value, minimize inventory write-offs, and monitor product performance.
Choosing the Best WMS Inventory Turnover Solutions
If cutting costs and keeping products fresh are top priorities for your business, WMS is a practical solution. Not only can WMS help reduce inventory waste for brands, but it can also help you prepare for future growth and improve operational procedures in your warehouse.
Aging stock is a common issue for many brands, even with the best planning and forecasting models in place. But with WMS inventory turnover solutions, you can take control of your older products and turn them into profit.
We are here to make connections if you’re looking for a warehouse storage or third-party logistics company to help you take full advantage of WMS offerings. Our handpicked providers are experts at managing aging stock for online businesses and making the most of every piece of available inventory.
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