Getting Serious About Dealing with Surplus & Obsolete Inventory-Getting Serious About Dealing with Surplus & Obsolete Inventory

Video Transcription

Video Summary

The video transcript is a recording of a webinar on the topic of dealing with surplus and obsolescence in a business. The main message of the webinar is that obsolescence can have negative effects on profitability, cash flow, and customer satisfaction. The speaker discusses various factors that contribute to obsolescence, such as underutilized parts returns offered by vendors, lack of attention to future non-returnable notifications, and ordering non-returnable or non-stocking parts. The cost and impact of obsolescence on profitability and cash flow are also addressed. The speaker suggests preventative measures and strategies for minimizing obsolescence, such as utilizing vendor returns, analyzing ordering and stocking parameters, and identifying and marketing obsolete inventory. The importance of accurate dealer business system reports is emphasized, as well as the need to adapt to changing vendors and changing rental fleets. The speaker also discusses the life cycle of parts and suggests strategies for reducing obsolete inventory, such as creating a digital warehouse for non-returnable parts and exploring options for selling or scrapping obsolete inventory. The overall message of the webinar is that obsolescence can be managed and minimized with proactive planning and strategies.

Keywords

obsolescence

profitability

cash flow

customer satisfaction

preventative measures

vendor returns

digital warehouse

proactive planning