Category Archives: Good Inventory Management

Addressing a Critical Issue of Industry by helping generate Value for Non-Moving Inventory for any organization

The Ezytrader platform provides a market place for the Industry to source a lot of value added products with immediate deliveries and at the same time allows the user to sell its non-moving inventory.

Ezytrader has already been able to generate a very good response from the industry with a lot of big and small companies having become members, and also having listed their long list of inventories on the website. Our clients/members have already started getting a lot more enquiries for their products by using the Ezytrader platform and buyers are able to find ready-stock material from companies that they had never once considered as suppliers.
Essentially Ezytrader has added a host of new non-conventional, non-tapped suppliers and clients for the industry, which is always eager to add more suppliers/clients to get good value.

To take the Platform forward, a lot of value-added-services are being introduced in the next few months which include
– material verification/authentication services
– Multi-level Filtering for Ease of Product Search
– Support Services for Selling/Buying of Products
– Online Auctions for Clients Products

Ezytrader has also launched its Android App recently to help facilitate the users experience directly from their phone. The app tries to cover the same aspects as the website but in a crisp manner that ensures toggling between various products and sections is still a user-friendly and easy experience.

Ezytrader hopes to add a completely new market place which did not exist in the conventional purchase system. And in doing this, we hope to generate a lot of value for the Buyer as well as the Seller.

It is an ideal platform for not just a Purchase Manager but even for the Finance Manager of an organization who is constantly trying to generate good value for his/her inventory. You cant always win both of those with the same initiative, and Ezytrader seems to manage that difficult task quite well.
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The Challenge of Turning Dead Inventory into Cash and Everything Else

If you’re looking at a build up of dead inventory, and feel a little overwhelmed by the enormity of it, here are a few ideas to help you get started turning it into cash.

Lot of companies struggle with dead inventory. Almost everywhere slowly, gradually, almost perceptively over time, the percentage of dead inventory grows. And as it is growing, the problem is thought to be modest, because the rate of growth appeared to be modest, so modest measures are taken to deal with it. Finally, when the sheer amount of inventory involved became inescapable, and the realization comes that the measures to deal with it aren’t close to being sufficient, the whole thing starts to feel overwhelming. So if you’re looking at a build up of dead inventory, and feel a little overwhelmed by the enormity of it, here are a few ideas to help you get started turning it into cash.

1. Sell It on www.ezytrader.in Start with the uploading the most desirable inventory, the most marketable, and the easiest to sell and turn into cash quickly & slowly put up all of it. You can also check for people looking to buy such items from leads on the website. We also help you by getting in touch with prospective companies or buyers in need of similar items.

2. Price it to move. Dead inventory is dead because it is not moving. It does little good to take the time and effort to segment it if you are not going to price it to move. Forget what you paid for it, and are carrying it your books for. It’s not relevant! Let me repeat this, because it’s an easy point to get hung up on: forget what you paid for it, it’s not relevant; that was then, this is now! What is relevant now is the price your buyers will pay for it, now! And like most everything else your buyers will tell you very quickly whether you have it priced right or not. When you are confronted with a build up of dead inventory, it’s critical to make a clear headed but realistic assessment of what it’s going to take to move it through.

 

3. Patience and Persistence : You didn’t get into this situation overnight, and you’re not going to get out of it overnight (Unless, of course, getting ten paise on the rupee from a liquidator makes sense to you, which it may in extreme cases). Build ups of dead inventory are frequently accompanied by a cash flow crunch, so the instinct to search for a quick fix can be strong. The solution rests with a persistent, sustained effort designed to deliver consistent incremental results. The first and most important step is establishing reasonable, attainable expectations for what can be accomplished in any given period of time.

4. Stop the bleeding. There are many possible causes for the continual buildup of dead inventory. If you can identify the cause and fix it, do so. If you haven’t been able to, however (which is likely or you would have fixed it when dead inventory was a much smaller problem), it’s critical to recognize that fact clearly and soberly, and seek out the professional expertise that can help you stop the bleeding.

5. Can you return it? You never know until you ask. And if you ask firmly, and structure your request as a win/win proposition, most vendors will be reluctant to respond with a flat out “No”. What do you have that your vendor might find valuable in return for their help? Your next purchase order perhaps. A test order on that new item or program your vendor has been after you to try. Maybe an increased share of your business. Open the dialogue, show your vendor the inventory you’re sitting on, they might have outlets that they can sell it to. Make clear that your request is a one-time thing, not a new standard operating procedure.

Dead inventory represents cash that is likely needed for other critical business purposes, such as paying vendors, reducing debt, fleshing out assortments or stock levels. The time to get started is now!!!

Take it Ezy!!

“I am looking to sell off my excess inventory and scrap, my inventory includes machinery and engineering goods, I need to find the right kind of buyers who would be interested in buying my products, but I do not know where to find them, nor do I have the time and energy to go looking for them. I am in need of a platform or marketplace where I could sell off my inventory with minimum hassle”

If you think you can identify with the problems of the person above, then www.ezytrader.in is the place to be for you, we help you get the best deals for your so called, ‘unused’ products. At Ezytrader, we work on the philosophy that something which is no longer important to you, can be the most important thing on someone else’s checklist, taking this idea forward, ezytrader serves as a platform for sellers to sell and buyers to buy. We believe that excess inventory and leftovers can be a very important asset for any trader and we help you leverage on this. We at ezytrader, help sellers to earn profitable returns on items that would have been otherwise discarded. At the same time buyers can get these products on a platform that is easily accessible at reasonable rates.

No transaction charges involved, only a simple 3 step process of register, login and upload for sellers, and click, post, earn for buyers is to be followed. To top this, we provide free of charge membership While Ezytrader only acts as a facilitator in the process, providing platform and product information, we do not compromise on safety and security for our registered customers, for this we follow the TACC rule.

That is, True, to all the other buyers and sellers. Accurate, provision of information.  Current, display of product listing and timely changes And Complete, adherence to rules and regulations.

Following this simple rule coupled with transparency of information between buyer and seller, this would be a one-stop solution for all your inventory related problems. So next time, if despite all the fore planning, you still come face to face with the issue of excess inventory, or are looking for a spare part, buying which from the market place could end up being an expensive affair, log on to ezytrader, we might just have the solution in place.

What makes EzyTrader the Next Big Thing in Inventory Management?  

One of the biggest things in the business industry that brings down a small business is lack of inventory management. This may seem surprising as there are many things that can bring down a business, and inventory management isn’t usually the first thing that is thought of. While keeping track of inventory may seem less significant than other parts of running a business, it is key to making your business run properly and to managing the money you have invested in the business. Several problems with supply management include ordering mishaps, surplus inventory, waste inventory etc. These can all sabotage your business with quickness.

A study conducted by a research company, Software Advice highlighted that 35% of Manufacturers want to modernize their inventory management. A total of 31% EPC Companies wish to automate and organize business processes and 14 %of Manufactures have outgrown their old inventory management system. In today’s age, Companies are looking at innovative platforms to buy and sell excess inventory.

And that’s where EzyTrader comes in.

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It provides a platform to buy or sell excess/surplus/unused stock and inventory automatically without any hassle. Thereby creating a marketplace that is effective and self-sustaining, providing a meeting ground for both the purchaser and the provider. The obvious question that arises is that, why would I choose EzyTrader? Let’s list down a few advantages:

For Sellers:

  • Helps reduce un-used inventory & Equipment
  • No transaction cost
  • Meet buyers directly
  • Get good value for your products

For Buyers:

  • Find material in small quantities which manufacturers regret to supply
  • Find material within minutes and save valuable sourcing time
  • Get access to lots of sellers
  • No transaction fee

It is a win-win situation for both the parties and as such a revolutionary concept that hasn’t been championed before. Moreover, it is backed by Oriental Manufacturers an already trusted name in the business.

Doesn’t this all shout, the next big thing in inventory control? You bet it does.

Go on, test it for yourself – www.ezytrader.in and don’t forget to follow us on Facebook, Twitter & Linkedin for continued updates.

 

A Deeper Look Into Stock & Control Inventory

Stock Control or Inventory Control shows how much stock you have at a time and how to keep track of it. Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain.

 

Everything you use to make your products, provide your services and to run your business is part of your stock.

There are four main types of stock:

  • Raw materials and components – ready to use in production
  • Work in progress – stocks of unfinished goods in production
  • Finished goods ready for sale
  • Consumables – for example, fuel and stationery

You can categorize stock further, according to its value. For example, you could put items into low, medium and high value categories. If your stock levels are limited by capital, this will help you to plan expenditure on new and replacement stock.

You may choose to concentrate resources on the areas of greatest value.

However, low-cost items can be crucial to your production process and should not be overlooked.

 

Deciding how much stock to keep depends on the size and nature of your business, and the type of stock involved. If you are short of space, you may be able to buy stock in bulk and then pay a fee to your supplier to store it, calling it off as and when needed.

 

Let’s look at the advantages and disadvantages of keeping little or no stock and negotiating with suppliers when you need it.

 

Advantages Disadvantages
Efficient and flexible – you only have what you need, when you need it Meeting stock needs can become complicated and expensive
Lower storage costs You might run out of stock if there’s a hitch in the system
You can keep up to date and develop new products without wasting stock You are dependent on the efficiency of your suppliers

 

This might suit your business if it’s in a fast-moving environment where products develop rapidly, the stock is expensive to buy and store, the items are perishable or replenishing stock is quick and easy.  Now let’s look at the advantages and disadvantages of keeping lots of stock

Advantages Disadvantages
Easy to manage Higher storage and insurance costs
Low management costs Certain goods might perish
You never run out Stock may become obsolete before it is used
Buying in bulk may be cheaper Your capital is tied up

 

This might suit your business if sales are difficult to predict, you can store plenty of stock cheaply, the components or materials you buy are unlikely to go through rapid developments or they take a long time to re-order.

Thus, http://www.ezytrader.in/ recommends few key questions you should ask yourself before making any stock related decisions:

  • How reliable is the supply and are alternative sources available?
  • Are the components produced or delivered in batches?
  • Can you predict demand?
  • Is the price steady?
  • Are there discounts if you buy in bulk?

Case Study: Importance of Gross Margin in Revenue for Inventory Management

Calculate Gross Margin Return On Inventory Investment  #rtechretailpro  #retail

Several companies think of growth but before that it is important to understand a term gross margin.

Investopedia defines gross margin as, “the number representing the proportion of each dollar of revenue that the company retains as gross profit after incurring the direct costs associated with producing the goods and services.”

For example, if a company’s gross margin for the most recent quarter were 35 percent, it would retain $0.35 from each dollar of revenue generated, to be used for paying off selling, general and administrative expenses, interest expenses and distributions to shareholders.

To analyze gross margin, you also need to analyze inventory investment as it helps to fund gross-margin growth. Here, the principle to be followed is that inventories should rise lesser than the sales growth rate of a company. An unanticipated spike in inventories occurs due to unplanned rise in inventory that may lead to cash-flow difficulties.

Let’s take the case study of a company with gross-margin dollars growing at a double digit rate, resulting in substantial earnings. The company had an increasing the credit line and hence difficulty in borrowing from the bank. The balance sheet analysis revealed that inventory investment had a higher growth rate than the company’s growth. In other words, the company was over investing in inventory. On further analysis, a significant portion of obsolete inventory was discovered. The problem also lied with the management as it had not been willing to take the required action to liquidate the stock, because of the negative impact on gross-margin dollars.

Eventually, the excess inventory issue created a cash flow issue and caused the company to borrow against its credit line. This, in turn, created more problems than if the firm had dealt with the obsolete inventory much earlier in the sales cycle and created additional cash flow.

This analysis gives us an insight into how management is deploying working capital and opportunities to reduce inventory and improve cash flow.


 

Reference: http://www.entrepreneur.com/article/232691

Here’s What’s Wrong with your Perspective of Inventory Management

Free Vector Girl With Laptop - Vector Characters
The right perspective on Inventory Management

 

Are you proactively controlling your inventory? Are you facing several problems managing non-moving goods? It’s time for you to start thinking about inventory management upside down.

Why should you change?

Good inventory management is at the heart of successful businesses. The goal is to meet your customers’ needs, and the best way to do that is to make all the products available as per their requirements. It’s better to be proactive rather than always catching-up.

What should you change?

You need to approach inventory management from a whole new direction. Don’t think of it as keeping as many or as few products on hand as possible. Both of those extremes lead to problems. Look at inventory management more as an essential process that helps organize all other processes. Inventory management is about finding equilibrium and what is right for the company. Information gathering and customization of strategy is most important.

Where should you change?

Virtually every part of your business is affected by inventory management namely, supply chains, warehouses, retail locations, picking, packing and shipping procedures and many other things can be improved with solid inventory management practices.

Focus on automating processes to save time and preempt solutions of problems. Set up automatic reorder points for products to prevent stock outs. Measure your suppliers’ reliability and build strong relationships with good ones. Find out which products are the most popular at each location and adjust inventories accordingly. There are plenty of ways to increase efficiency, if you know what to look for.

How should you change?

The key is to sell your inventory on innovative platforms like EzyTrader.in. This lets you set up reorder points, optimize your warehouse organization, find equilibrium in your inventory needs and much more.

When should you change?

Start right now! Don’t put off changing for the better.

Break your Inventory Management assumptions

Do away with your pre conceived notions about Inventory Management and look at it in a new avatar.

I can do it

  1. Hard Work ahead

Managing Inventory does take a lot of effort but that doesn’t mean it is extremely hard. The level of difficulty lies in your perceptions. If you manage everything at once, yes it is difficult. However if you get into a rhythm of managing jobs one at a time, the task will not seem insurmountable anymore. Selling your inventory on EzyTrader makes managing it a piece of cake!

  1. I have been managing inventory well enough

As a business evolves, inventory management becomes a complex process. It now becomes essential to update every inventory management procedure. This would make a big difference in the customers’ experience if they can get their products quicker and more reliably.

  1. Inventory Management Software?? Not for me

With a growing client base, product line and location, inventory management software is a good investment to start looking into. Do away with the complexity of running a system on paper or in Excel spreadsheets.

Managing inventory can be a lot easier if you modernize the way you do it. EzyTrader is the perfect platform to do just the same!

How to save Money with Good Inventory Management?

5 WAYS TO GET RID OF YOUR INVENTORY NIGHTMARES

 Yes, inventory is an asset; however excess of it is a non-productive asset because it earns no interest in handling insurance, taxes, shrinkage and space.

What do you do with excess inventory?! Here are 5 tips to dispose of the excess:

Tip 1: Sell Harder

Your Sales Department is the real hero who explores all options with the consumer. Either the business relationship is maintained with the original customer for whom the inventory was produced or other customers with similar product requirements are looked at.

Tip 2: Re-Configure

With the changing times, obsolete inventory too is brought up to date with the latest version of the product. The principle supplier may be consulted on how to modify or re-work the merchandise to be saleable. You know you have a good deal if modification cost is below 25%!

Tip 3: Discount! Discount! Discount!

These 3 golden words grab our attention anywhere, anytime and for any kind of selling! In this case, some finished goods and/or unused goods can be sold through brokers or after markets at discounted rates.

Tip 4: Mix and Match

Where there is a will there is a way! Try taking apart the assembled product can use some of its components in other products or sell them as spare parts.

Tip 5: Donate for Tax Credit

Your business may be sitting on an important tax deduction and you may not even realize it! The key is to donate some overstock inventory.

Tip 6: Sell Online

Utilize the vast opportunities present on the World Wide Web and list the inventory on E-Marketplaces like EzyTrader.in which not only save time and are cost effective but also provide greater access to buyers generating more leads.

As a trader, manufacturer, small scale business, stockists and dealer you may like this practice. But, question of ‘What’s in it for me?’ still remains. Let’s take a glimpse at the benefits of selling excess inventory:

  • Free from clutter in Warehouse: Be it space, labour, insurance, shrinkage and utility, storing excess inventory is rather expensive.

 

  • Focused and Targeted marketing attention: Save on the disproportionate amount of money, effort and time to clear nonmoving inventory and invest in better marketing options

 

  • Say a final goodbye to all problems of liquidating overstock: Now say hello to a larger availability of space that is easier to control and count.

 

Now the question arises ‘How to identify which the merchandise or goods to clear?’

Slow Selling and Nonmoving SKUS are a good place to start. Just as it is unadvisable to keep a stock or mutual funds and hesitantly unload it on under performance, similarly it is risky to hold stagnant inventory. Wholesalers, distributors and catalog businesses regularly review their offerings, weed out the slow-movers and concentrate on top-selling items.

Unsuccessful Product Innovations, Undamaged Returns and Discontinued Models can also be considered for selling surplus inventory. Cancelled Orders can be quite cumbersome to manage, however listing cancelled orders for buyers can prove to be quite cost and time efficient.

In today’s VUCA (Volatile, Uncertain, Complex and Ambiguous) world, a stand-out packaging design is imperative to grab the consumer’s attention. Updating package graphics is a good way to makeover the unused products.

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