Depending on your industry, you may have large stocks of raw materials, Work-In-Progress (WIP) and goods for resale. You can sell this surplus inventory.
Surplus Stock Inventory
You may have raw materials, WIP or finished stock on hand that you can sell quickly. Providing you get more than the original cost, it will generate a once-off Revenue boost for you.
You may also have stock that you can no longer sell because it has been superseded by other technology or is otherwise redundant.
Perishable stock getting near the end of its shelf-life should go for whatever you can get before it expires; it is certainly better than writing it off entirely.
You can possibly sell these via:
- Garage sale at your premises, or another location if you want privacy.
- Sale to others in your industry still needing that inventory.
- Deeply discounted “specials” though your normal sales channels.
- Remainder stores and sales
Depending on your accountant and accounting system, these heavy inventory sales can show up as usual expenses and impact your Profit. This is as they move from the Balance Sheet to the Profit and Loss. This is an accounting issue that you can safely ignore while you are doing your turnaround sprint.
For more help understanding any issues relating to this Section of the Turnaround90 Campaign, use the 12Faces Diagnostic System to drill down to root causes of problems and find our suggested Treatments.