Accumulating products in the DC that have lost their luster increases per piece storage and handling cost while reducing order processing efficiency.
Buyers, marketing, and accounting executives are often not aware, or simply do not pay attention, to the increasing level of SKU buildup in the DC. Operations managers could do a better job of communicating this problem by suggesting eliminating some obviously dead SKUs. This would be especially beneficial if the company maintains a fixed picking positions (as many do) for all active items including slow movers.
Getting Rid Of the Product Morgue
Slow moving merchandise ends up costing more and more each day it remains in your DC. Someone needs to be assigned to attack the problem. Here are a few ideas that can help you move “stagnant” inventory out of your operation?
Liquidation.com – Here is an auction specifically designed to help retailers, wholesalers, liquidators, manufacturers and others move bulk items. The website boasts several categories of merchandise and just might be the solution you are looking for.