Reduce excess inventory


You always seem to have too much inventory of items that don’t sell. Excess inventory is a major problem:

  • You have to warehouse it
  • You have to insure it
  • It’s value depreciates over time
  • It gets stolen
  • You count the same items every stocktake
  • A huge amount of working capital is tied up in dead inventory
  • You may be forced to write it off

All costing you money!

Tying up cash by buying too much of the items that don’t sell results in not enough cash available to buy the items that do sell, resulting in both excess stock and stock outs. What if you could get the best possible recommended order quantities factoring in any supplier ordering constraints, placing optimal orders and minimising the chance of future excess.

Once placed, an order is rarely reviewed before it arrives into stock. If demand has dropped off, you may end up with significant excess that could have been avoided. What if you could get early warning when market conditions change, enabling you to delay the order, cancel the order, split the order into multiple deliveries or reduce the order quantity.

So how does Sage Inventory Advisor do it?

The only way to keep on top of things is with focus:

  • the dashboard KPI track your stock value, excess and potential excess so you can monitor how you are improving
  • the exception lists highlight the worst offenders, enabling you to focus on items that are having a big impact on your business

Dashboard Stock Holding

  • Track your Stock value against your Model inventory
  • Easily find items with excess inventory
  • Review items that are selling less than the forecast before they end up with excess

Dashboard Excess Stock

  • Track the value of Excess inventory in your warehouse
  • Drill-down into the worst offenders and take action
  • Free up cash as excess inventory reduces

Surplus orders

  • Get early warning of items that may result in excess
  • Delay orders, cancel orders, split an order into multiple deliveries or reduce order quantities to prevent future excess
  • Take multiple actions for the best inventory outcome

Don’t let large ordering constraints force you to order too much

  • Order recommendations take into account supplier imposed Minimum Order Quantities (MOQ)
  • Ideal order recommendations show you the real requirement, highlighting how much additional inventory the MOQ is forcing you to buy
  • This allows you to negotiate a better deal with your supplier or change to a different supplier who has smaller constraints
  • If you can’t change suppliers or negotiate a reduced constraint, Sage Inventory Advisor will increase your ordering cycle based on the MOQ and reduce the Safety Stock needed for the item, minimising the impact of the constraint

How can I be smarter when filling a whole container?

  • When filling containers, let Sage Inventory Advisor suggest important items that are coming up for order next
  • For the best inventory outcome, pick the fast movers or important items as these items will sell quickly even if we have excess when the container arrives
  • Add to the order based on Value, Units, Volume or Weight
One of our key reasons to implement Sage Inventory Advisor was to reduce excess stock. The $500k+ that’s now in our bank account rather than on our warehouse shelves is evidence enough we have achieved that!
See the full case study.
Tim McCredie, Barrett Distributors

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