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RESIDUAL STOCK MANAGEMENT
There is probably not a single FMCG company on the market that does not have problems with residual stock. Several factors can lead to residual stock, and some of them are beyond the producer's control.
- variance between sales forecast and actual sales
- product packaging relaunch
- unsold tailor-made promotion goods
- new marketing/pricing strategy
- success of competitors
- implementation of new production technologies
- canceled export orders
- new or changed law
- product discontinuation
- unexpected results of physical inventory
and of course many more.
No matter how they arise, all these situations require an effective solution that is available only from SYPEX. We are able to deal with goods with only few days left before expiry, or even expired!
Every day we deal with returned, opened or damaged goods. However, the largest share of our business is with goods approaching their BBD (best before date).
The unprofessional management of residual stock is costly and can seriously damage a brand reputation that has been built up over several years.
Thanks to our years of experiance with open air market traders accross the whole country, we can guarantee that the goods sold to us will never appear in retail. Our total volume is several hundreds tons a year, 100% of which is sold outside traditional retail shops.
This distribution channel (open air markets) is quite unique in terms of both target group and the currrent coverage strategies of most producers.
Trying to put off the decision about residual stock makes the eventual solution even more expensive, with a significant impact on cashflow and consequent losses.
The destruction of goods is an extreme solution and in fact represents capitulation. Regardless of financial loss and the additional costs for scrap this can have a negative impact on the target group should this kind of information become public.
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