How to Reduce the Loss of Unsalable Inventory in Logistics?

Unsalable goods not only take up valuable storage space, especially large orders (such as commodities, industrial equipment, seasonal products, etc.), once unsalable, not only occupy storage costs, but also may cause huge losses due to transportation delays, cargo damage, and policy changes. The accumulation of unsalable goods eats away profits, the low turnover rate of logistics inventory drags down cash flow, and the risk of cargo damage in international transportation is even worse.

According to industry data, about 30% of the inventory in the global supply chain is eventually processed at a low price or scrapped due to unsalable goods, and the complexity of cross-border transportation further amplifies this risk. In order to help companies reduce inventory risks and improve capital utilization, this article will give you a detailed answer on how to reduce the loss of unsalable goods, and provide feasible solutions to help you optimize inventory management and improve operational efficiency.

What is unsalable goods?

Slow-moving goods refer to inventory goods that cannot be sold normally due to insufficient market demand, obsolete products, damage or other reasons. In international logistics and supply chain management, the handling of slow-moving goods is a complex but crucial issue. Slow-moving goods not only take up valuable storage space, but also increase inventory costs and may even lead to financial losses.

Common types of slow-moving goods

1. Out-of-season goods: such as winter warm-keeping products become slow-moving goods in summer.

2. Obsolete products: Inventory is not sold in time, such as old electronic products or fashion clothing.

3. Damaged goods: Goods that are damaged during transportation or storage, or some goods are deteriorated, damaged or outdated due to long-term storage and cannot be sold.

4. Insufficient market demand: The sales speed of goods is lower than expected, occupying warehouse resources, affecting the subsequent flow of goods, and the products do not meet the current market trends or consumer needs.

What is inventory warning?

The inventory warning system will alert the company when the inventory level is too high, the product is about to expire, or the sales speed decreases. These early warnings help companies make proactive decisions, such as discounting, reallocating inventory, or suspending new purchases, to prevent unsalable goods.

Ways to reduce the loss of unsalable goods

1. Accurate market demand forecasting

Accurately forecast market demand through data analysis and market research to avoid over-purchasing and overproduction. Use big data and artificial intelligence technology to analyze historical sales data and market trends and plan inventory in advance.

2. Optimize inventory management

Adopt advanced inventory management systems to monitor inventory levels in real time and adjust procurement and production plans in a timely manner. Introduce inventory early warning mechanisms to automatically remind when inventory levels are close to safety stock to avoid inventory backlogs.

3. Flexible supply chain strategy

Establish a flexible supply chain that can quickly respond to market changes and adjust product types and quantities in a timely manner. Establish close cooperative relationships with suppliers to achieve fast replenishment and flexible return mechanisms.

4. Effective promotion strategies

Quickly clear unsalable goods through limited-time discounts, bundling sales, clearance promotions, etc. Regularly evaluate unsalable inventory and formulate targeted promotion plans to attract consumers to buy.

5. Optimize transportation and storage conditions

Ensure that transportation and storage conditions meet the requirements of the goods and reduce the risk of damage and deterioration. Choose a professional logistics service provider to ensure that the temperature, humidity and other conditions during transportation meet the requirements.

6. Clean up inventory regularly

Clean up inventory regularly and classify unsalable products, such as donation, recycling or destruction. Establish an inventory cleaning mechanism, regularly evaluate the health of inventory, and deal with unsalable products in a timely manner.

How does Shopv logistics fulfillment service provider help inventory optimization?

As a professional large-volume order fulfillment service provider, Shopv provides the following solutions to help you effectively reduce the loss of unsalable products and optimize inventory management:

1. Accurate inventory management

Provide an advanced inventory management system to monitor inventory levels in real time and automatically adjust procurement and production plans. Set inventory warning thresholds and automatically remind when inventory is close to safety stock to avoid inventory backlogs.

2. Flexible supply chain support

Establish a close cooperative relationship with high-quality suppliers to achieve fast replenishment and flexible return mechanisms. Use big data and artificial intelligence technology to accurately predict market demand and avoid over-purchasing.

3. Professional logistics services

Choose a professional logistics service provider to ensure that the temperature, humidity and other conditions during transportation meet the requirements. Provide efficient warehousing solutions to ensure the safe storage of goods and reduce the risk of damage and deterioration.

4. Promotion and clearance support

Develop targeted promotion plans based on the inventory of slow-moving products to quickly clear the inventory. Provide inventory clearance services to classify slow-moving products for processing, such as donation, recycling or destruction.

5. First-in-first-out (FIFO) inventory system

The first-in-first-out (FIFO) principle ensures that old inventory is sold before new inventory, thereby minimizing the risk of expiration and obsolescence. Our fulfillment team ensures that the first-in-first-out (FIFO) principle is strictly implemented at the warehouse level during the order picking and packaging stage.

6. Use multi-channel fulfillment

Slow-moving in one market does not mean slow-moving in all markets. Shopv supports global multi-channel distribution, allowing you to enter overseas markets where there may still be inventory demand.

7. Optimize return management

If not handled properly, returns will quickly become slow-moving. Shopv provides solutions such as return processing, repackaging, replenishment and even remarketing.

Slow-moving products are a problem that every B2B company and e-commerce seller may face, but through accurate market demand forecasting, optimized inventory management, flexible supply chain strategies and effective promotional methods, slow-moving product losses can be significantly reduced and operational efficiency can be improved. As a professional bulk order fulfillment service provider, Shopv provides a full range of solutions to help you optimize inventory management, reduce slow-moving product losses, and ensure the continued growth of your business.

If your company wants to reduce inventory losses, improve capital utilization, or needs a professional solution, please feel free to contact Shopv. Let Shopv bulk order fulfillment service provider help you optimize inventory and improve logistics efficiency. Our professional team will provide you with full support to help you solve practical problems.