Monday, December 2, 2013

Thinking about the cost of slow moving inventory

If your business stocks spare parts to provide long-term customer support, have you ever thought about how much that excess inventory is costing you?

On the surface, it might not seem like much, but let’s break it down. Say your excess inventory is worth $1,000,000. You don’t want to throw that investment away, but it costs money to sit there. There’s the real estate of the space, the wasted man-hours handling it, and the absence of profit from better-selling parts that could be there. No matter how it breaks down, when you add it all up, that cost runs up to 35% of that inventory’s value every year. How long have you been writing this number off? If it’s more than three years, you’re paying more than your inventory is actually worth, but you know that the day you scrap it is the day a customer is going to need it.

What if you could get rid of this cost and get this excess and slow moving inventory off your books but still have access to it? What if you could re-allocate these resources for more profitable inventory? What would that do for your organization?

Find out with GPS Inventory Solutions, a profitable solution for unprofitable inventory. What’s GPS Inventory Solutions? It’s how more and more companies are getting rid of their excess inventory. When you scrap slow moving inventory, it’s gone forever, but when you deposit your inventory into the GPS Inventory Bank, you eliminate the expense of ownership while preserving the availability of each part. Through our program that’s customized to your company’s needs, we assume ownership of your inventory. As the owner, we’ll transport that inventory to our high density, long-term storage facilities, keeping the parts until they’re no longer in demand.

But, say they do come back in demand. We’ll provide immediate parts availability, shipping to you or your customers as requested, even on weekends and holidays. While we take care of your excess and slow-moving parts, you’ll free up space and working capital for more profitable inventory and other corporate initiatives. What’s more, we protect your brand and your market. In fact, we don’t sell out of your authorized distribution network. That’s why so many companies rely on us to balance customer demand with the need to control costs and improve profits.

The inventory is off your books, yet you still have access to it, and that storage cost eating into your profits? Gone. It’s a win-win situation, so why wouldn’t you want to do this? For your profitable solution to unprofitable inventory, turn to GPS Inventory Solutions.

How much longer can you afford to let your excess inventory eat into your bottom line? Contact us today for a complete analysis to discover how much your business can save.