Inventory or stock management and warehouse management tend to be two very distinct roles. Warehouse managers advise their inventory colleagues on levels of safety stock and the specific movements and characteristics of particular stock items. The processes include choice, purchase and replenishment of stock, the identification of fast-, medium-, slow-, non-moving and obsolete stock, ABC classification. When the lead time is in line with the customer’s requirement the manager can dispatch the goods directly from the supplier to the end customer.
When the manager finds out the obsolete and non moving stock, he should:
- Sell the item at a highly discounted rate, or take help from companies who specialize in selling overstocks and obsolete items.
- Assess whether it is cost effective to break the item down into its constituent parts.
- Dispose of the product as cheaply as possible. It is not cost effective but will release space to store other faster-moving product.