When Warehouses Have Too Much Inventory! How RFID inventory Management helpsBrett Wilkerson
Some of the biggest retailers in the world, like Walmart and Target, have reported their warehouses are overflowing with everything from clothes to bulky toys. Meanwhile, warehouses in China and the U.S. are losing floor space to unsold televisions, refrigerators and sofas.
As warehouses continue to fill up, a new problem is emerging – what to do with inventory returned by their customers.
The Rise of Unwanted Inventory
Consumers in the U.S. aren’t buying products like they used to. They’re shifting their purchases from goods to services. It’s more about enjoying in-person experiences. That means once in-demand products are just sitting unpurchased in warehouses.
In addition, there’s been a disconnect between supply and demand over what the demand actually is. The result is warehouses filled with unwanted items with no demand and no supply for requested products.
The unwanted inventory is taking up space in overcrowded warehouses and costing retailers more money. Of course, when customers return a purchase, retailers and warehouses now have to deal with the challenge of what to do with it.
It’s Okay. You Can Keep It.
The return policies have always been the same. If you were unhappy with a product you received, you returned it, and the retailer refunded your money. After all, returned inventory could still be profitable if handled correctly. For example, retailers could…
- Put them back on the shelf at the same or discounted price.
- Refurbish the damaged items and sell them for less.
- Offload them to liquidators to sell.
However, returned inventory costs warehouses and retailers more money over their initial investment. And with current fuel prices driving shipping costs up and warehouse space at a premium, retailers are employing a new tactic – refunding the money but letting the customer keep the product.
How RFID Solutions Can Help Manage Your Warehouse Issues
MSM Solutions uses RFID technology and software to help you better manage your warehouse inventory.
Track and manage cases, pallets or individual items through PortalTrack, MSM Solution’s customizable software solution. Through an innovative approach to inventory management, you’ll be able to identify, track, count, and manage your products accurately and efficiently.
Gain accurate visibility into your inventory so you know what you have and, more importantly, what you need. This helps you make critical decisions on what products you can write off and let the customer keep versus the in-demand products you want back to restock your inventory.
With intuitive integration across mobile, desktop and web-based platforms, you can easily manage and optimize your inventory management processes so you have a more efficient supply chain.
Contact us today to learn more about how MSM Solutions can help you improve your warehouse management processes so your supply chain and inventory tracking are more efficient, dependable and profitable.