Do you have obsolete inventory taking up space in your store?  If so, you inadvertently may have inventory working on the “First In, Never Out” method.  With the end of the year quickly approaching, now is a great time to evaluate your stock.

Here are a few scenarios with instructions on how to easily clean up your inventory.

Scenario #1

You have inventory sitting in your shop that has been turned over very few times in the past 12 months.

  1. Use LubeSoft Inventory Usage Status Report- Detailed (1,7,3,8).  Run a detailed report for a date range of at least six months.  12 months is preferable.
  2. Review and compare “Quantity Sold,” “Current Quantity on Hand” and “Turn Ratio.”
  3. For items you have sold one or less during the last twelve months and even items that have a turn ratio of less than one, re-evaluate the need for that particular item.  (For example: Quantity Sold: 1, Quantity on Hand: 8)

Scenario #2

You have recently changed suppliers, but still have previous vendor part numbers in the store.  OR… Your filter vendor consolidated part numbers over the past few years and you may have missed some of the changes.

  1. Perform a detailed cross reference to determine if any of the old filters still have a useful application for you.
  2. Use a large marker and re-label old part numbers with valid new part numbers.
  3. Place the old filter in the valid filter number stack or area.
  4. Use relabeled filters first.

Once you have identified obsolete inventory in your store, the next step is to decide where it should go.  Depending on the condition of the items, your supplier may be willing to let you return the product for credit.  If this is not an option, you may want to consider donating the product to your local community college automotive department or trade school.

Reducing obsolete inventory helps diminish the amount of time required for managing that inventory and decreases your carrying costs for those items.

Questions? Please contact us: isi@ints.com