6 useful tips to reduce obsolescence
Obsolescence is a longstanding challenge in the machinery dealer business, often rooted in the 'nice to have' over 'need to have' mindset. But how do you reduce obsolete stock? Here’s our advice, inspired by Spare Parts Manager Rune Fredenslund from Lyngfeldt A/S – one of Denmark’s most established agricultural machinery businesses.
1. Invest in a stock management system
A robust stock management system provides clear visibility into inventory, helping you track stock levels, avoid overstocking, and minimize waste.
2. Return unused parts
Unused parts? Send them back to the supplier. This simple step prevents excess stock from accumulating unnecessarily.
3. Set obsolescence percentages
Implementing obsolescence percentages gives you a clear overview of the proportion of stock value that’s obsolete, helping you take proactive measures to manage it.
4. Sell obsolete parts
If the damage is done, sell obsolete parts to recover part of the cost. Platforms like web-parts.com can help you find buyers and ensure unused stock doesn’t go to waste.
5. Continuously improve processes
Regularly review your inventory management processes. Identify weaknesses and make adjustments to prevent obsolescence from becoming a recurring problem.
6. Plan and forecast accurately
Planning and forecasting allows you to anticipate the demand for parts, ensuring you have what’s needed without overstocking or understocking.
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