ADS Solutions Wholesale Distribution Software Blog

Creative Marketing Liquidates Slow Moving Inventory

Every distributor has been bogged down with slow-moving merchandise at one time or another. Remember when you purchased 10,000 pieces of that part you liked because of the special manufacturer’s deal you got, only to find the parts gathered dust in your warehouse for the next 3 years? Don’t worry: there are innovative ways to liquidate slow moving inventory, and if you need some guidance, your wholesale inventory management software can help you identify the items which move the slowest yet have the highest carrying costs.To begin with, break down your inventory according to typical ABC Inventory Stratification methodologies, or use another framework discussed in our inventory reduction article, which provides step-by-step advice about determining which items to target. 

Then, let go of your guilt, and recognize that you took a calculated risk which didn’t work and now the job at hand is to move these goods. Just follow these 4 liquidation tips to move your slow-moving merchandise out of your closets and into the hands of your customers:

  1. Give your customers a deal on the products you want to move. Depending on your margins, you can give your customers a percentage off, create a buy-one (case) get-one deal, or present added savings if they buy in higher quantities than their previous order. Price reduction is the best motivator for customers, so try to entice them with a sale. Even if your margins are slim on some of these products, it may be worth your while to discount them to clear room on your shelves for higher-margin, more popular items. Keep your warehouse staff informed so they are prepared to pack and ship those targeted items.
  2. Next to a great price, today’s customer can be tempted with breaks on shipping. For a limited time, take a page out of your retailer’s book and try getting creative with your shipping policies.For example, if you already offer two-day shipping, you could give them free next-day shipping on select items. Be certain to clarify that the shipping deal you decide upon as an exclusive offer is available only with the specific products you are targeting. As long as you clearly specify which items receive free shipping, there’s no reason why you have to offer it on other items. Alert your shipping staff about the shipping deal so they know what to expect. There’s nothing that will frustrate a customer more than being charged for something they were told they would get for free.
  3. Pair the ‘snails’ with some of your faster moving products. But before you decide which items to pair, think about how your retailer will be able to market and eventually sell these bundled items. If you have an idea, take the thinking our of their decision and suggest it to them. Your customers love ideas! Create a “hook” and be mindful to make the combination relevant. If you have an abundance of cheese graters, for instance, you could couple them with the cheese plates that are hot sellers. Your packing department will need a heads-up that these two items are being promoted together, so they can prepare the necessary packaging beforehand.
  4. If all else fails, sell your ‘sleepers’ via an online liquidation site. You can even create your company’s own liquidation site, either as a subdomain under your distribution company’s URL or a new one you create just for your liquidation items.

With just a little creative sales and marketing, you will be able to clear your shelves of those pesky, slower-moving items, and free-up cash you need for other, more important things in your business. For 3 decades, ADS Solutions has been the information technology backbone for growing wholesale distributors, providing powerful wholesale inventory management software, medical purchasing inventory software, irrigation supply software, restaurant equipment supply software, janitorial, paper & chemical supply ordering software, and accounting software for wholesale distribution.

New Small Business Distribution Software Brings Efficiency to Sales

Salespeople in the distribution industry used to be chained to their desks for long hours of tedious manual labor to create, sort, collate, organize, and file the stacks and stacks of paperwork that was necessitated with every order and by every aspect of business. Thankfully, today’s new, innovative small business distribtution software has eased that strain.

The efficiency of wholesale distribution software frees your employees from these antiquated process, allowing more of their time to be spent on actually marketing your products and connecting with your customers–both activities that will increase of return on investment and protect your customer base. But freedom from paperwork and improved customer relations are only two of the many benefits of small business inventory software. Read on to explore these others!

  1. Technology can be much more accurate than the human hand.  Of course the benefit of technology runs depends on the accuracy as your employees, but unlike the paper and pen methodology, once information is entered into the system, it needn’t be transcribed or translated again. The fact that orders are only entered once into small business inventory software decreases the opportunity for error.
  2. Add-on items are easily connected to all items ordered by your customers. As your sales staff is entering their orders, a prompt appears to remind them of added of related items that would enhance or support their purchase. There is benefit to the customer, who saves time by not having to place an additional order for necessary but not always obvious components or parts, and benefit to your sales staff and your bottom line, because it becomes very easy for your sales staff to sell more. Profits rise with as sales increase.
  3. The order fulfillment process becomes much quicker and more efficient because all documentation is digitally produced so any employee can easily find and alter an invoice as needed. In the case of a customer wanting to add onto an existing order, any of your sales staff can accommodate his follow-up request. Special notes regarding each customer can be noted in the system, so when one of your sales staff leaves your company, the history or knowledge-base of each individual customer remains with you in your small business inventory software system.
  4. The amount of time and cash require to ship an order is frequently reduced because most distribution software for small business is capable of finding the lowest rates possible before finalizing the contract.
  5. The convenience experienced by your company from using small business inventory software is also transferred to your customers. The more efficient and business-like your processes, the more likely your customers are to return.
  6. Distribution software for small business centralizes information and prevents alterations by random employees in your company. It ensures that no details will slip through the cracks.
  7. Customers will be able to quickly and accurately access the information that they need.  Open lines of communication with your client will demonstrate your company’s professionalism in operations. Improved customer service will help small distributors retain an advantage over large giants like newcomer Amazon Supply. The personalized service you give your customers is priceless. 
  8. Finally, nothing can help your small distribution business grow better than putting your products on the Web. Modern e-commerce software can make any small business look like a champ.

Today’s small business distribution software offers great advantages to small, growing distributors.  Please contact us today to discover the efficiency that small business inventory software can bring to your distribution business.