Every distributor has seen it: return shelves overflowing with parts that came back from a customer, parts that never sold, and parts that are technically inventory but functionally furniture. Returns are the sleeper line item for industrial distributors (and even manufacturers!) They don't show up in the sales meeting. They show up in the margin — months later, wearing a … [Read more...] about The Hidden Tax of Returns: How Industrial Distributors Turn Dead Stock into Cash
Excess Inventory
Full Warehouse, Empty Wallet – The Surplus Inventory Trap
What can an inventory holder do with excess inventory, why does it happen? In MRO & Industrial, inventory is a double-edged sword; it’s the lifeblood and the weight. With gross margins around 30%, it is pretty attractive, but all distributors have experienced a "just-in-case" order for a critical part turning into five years of dust-collecting deadstock. Looking into … [Read more...] about Full Warehouse, Empty Wallet – The Surplus Inventory Trap
