Have a stockpile of obsolete inventory?
It is sometimes the case that companies end up with a stockpile of obsolete materials or with finished goods inventory that they can no longer sell. Not only does this inventory tie up working capital, but it can be taking up space that could be used for some other productive use.
The only apparent solutions may be to sell it for pennies on the dollar, give it away or pay for its disposal.
This may be the case because these materials are not needed to make the products that you sell now due to the fact that the products you were making with these materials may not be salable.
There is another way to look at the problem. What products could you make with these materials? Could you buy additional supplies of these materials at low cost? Could you profitable fabricate and sell these products? What synergies would selling these products gain for your company? Would they be sold to the same customers, or could they be sold through your existing distribution channels or could they be made with the same equipment and labor as your existing products? How much investment would be needed to begin making and selling these products? What are the long term prospects for these new products?
Apollo can help you through a strategic review of your options and assist you with building a business case to take action.
This assistance may include helping your company to (click on any for more information):
- Develop an Effective Business Strategy
- Speed the development of new products or services
- Enter new markets
- Perform a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis