Benefits in Buying & Selling Excess MRO inventory

Posted by admin on January 22, 2019  / 
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Excess inventories are always a migraine as it not just occupies precious space but leads additional costs in buying those excess spares and spending on scrapping too; but then, surplus stocks can hold some value where one can even make some revenue out of these excess commodities.

• Low Price
Buyers are on the lookout to buy MRO spares and usually end up procuring new, which may not just be expensive (the list price) but many a times takes a while for supply too. So here is a chance to liquidate these excess spares and thereby the buyer can procure them at a low price. It helps to clear off the sellers inventory and also making better use of their storage space. This is a great deal for both the seller who has turned it around from spending money to clear excess inventory, to making money on the same. This also provides an excellent opportunity for buyers to get those products at the best prices.

• Bulk purchase
Cost per unit is one of the main factors that every MRO buyer focuses on. When excess inventories are sold off in bulk it helps them to further negotiate a better deal on a case to case basis. Stockists and some retailers can gain advantage of this bulk purchase and can make profit even after passing on further discounts to their customers.

Surplus MRO Problems

• Obsolete Free Inventory
Production is critical as any impact on it can have adverse effect on supply and revenue. When excess inventory is held, it also creates a challenge of constant monitoring of the same; keeping track of obsolete inventory and procuring new ones in place could be a nightmare when millions of spares are spread across locations.
Freeing up obsolete MRO inventory and also getting parts at the right time, can help the production houses significantly.

• Low Maintenance Cost
Maintenance cost is dependent on the size of the inventory levels as well. Holding numerous stocks piling up to millions to provide contingency can be many a times a waste of investment. Managing the right inventory is critical to lower the maintenance cost.

Surplus MRO inventory solutions

• Avoid product degradation
Product damage has a great and direct impact on supply chain. This can suffer if there are damaged products in the inventory stockpile, over the period of time. Regular monitoring the shelf life of spare parts will not only be challenging but liquidating at planned intervals is the one best option to overcome this problem.

• Make space for new products
Keeping right inventories that helps support production and maintenance spare parts is the best way to run production operations smoothly. If there are far too many idle products that not just occupies huge space, but denies space for newer spares that are required to replace the older ones, it can create a mess in maintaining and optimizing inventory levels. Priority is to be given for phasing out old, unused, spares and newer spare parts inventory should be considered to ensure sustained production operations in the future.

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