Dealing with Excess Inventory Management

Published: 11th November 2010
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Be it any company in the world, there needs to be the proper planning involved for the goods that are being manufactured and the raw materials that are being stored. If there is no proper planning involved in the manufacturing process then there is every chance that there are excess goods that are being produced and that would need to be stored in the inventory. So, there will be many situations when the company would need to look into the excess inventory that is present due to the extra manufactured goods or the excess raw materials. Here you can look about the Excess inventory management types and some ways by which they can be managed fruitfully.

Primarily there are 2 types of Excess inventory management. One is the situation where in you would need to manage the goods that are being produced in excess by the production department. This situation is common in most of the companies where there is the bulk manufacturing process. The next situation is one where there is the excess inventory management of the raw material. For both these situations I am sure the following methods will apply.

The Excess inventory management in the case of the excess goods can be approached for new customers and dealers. There are many dealers who might be in the need of those goods but they are unknown to you. Probably by advertising through the media for the Excess inventory present you will be able to manage and see those goods. The next thing that can be done is to stop the production of those goods which are adding to the inventory. One can say that the inventory department would need to find out the limit which is considered as the threshold for inventory and advise the production department to stop the production when this limit is reached. When it comes to the Excess inventory management of the raw material, then what can be done is, to use the raw material for the manufacture of the other goods which use the same raw material. Also there can be the tender for the raw material which can be release for where in many manufacturing units will come in with the quotations for the same. Thus the excess inventory on the raw material side can be managed effectively.
The general step to avoid the Excess inventory is to plan properly before the purchase or the production of any material which will never lead to the excess inventory.



Alfred Oliver writes content about semiconductor distributor , Excess inventory management and Hard to find electronic components . For more info visit at : http://www.converge.com/

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