As the festive season and the impending peak period approaches, small and medium-sized enterprises (SMEs) inevitably find themselves caught up in the whirlwind of the Christmas rush. Now is the time it becomes paramount to redirect attention and begin considering a post-Christmas strategy. In the aftermath of the festive rush, SMEs frequently find themselves with the challenge of dealing with excess stock.
Explore our newest blog, offering targeted guidance and actionable strategies designed specifically for small and medium-sized enterprises (SMEs). This edition hones in on effectively addressing the post-Christmas stock surplus challenge, providing insights into efficient management and storage practices. Our goal is to facilitate a seamless beginning to the upcoming year and a smooth transition into 2024.
Develop Strategic Post Christmas Promotions
With January sales, bundled offers, or targeted marketing campaigns, businesses can incentivise customers to purchase surplus inventory, moving your excess stock efficiently. This not only helps in reducing assets but also creates a positive customer experience.
Explore collaborative approaches with suppliers, distributors, and retail partners too. Discuss inventory levels and potential returns or exchanges to manage excess stock collectively. Collaboration creates a more agile supply chain, enabling partners to share the burden of excess inventory and find mutually beneficial solutions.
For businesses dealing with seasonal or Christmas-specific items, consider implementing return or recycling programs. Offering incentives for customers to return unused or unwanted items can help mitigate excess stock challenges and contribute to sustainable business practices.
Post-Christmas Flexible Warehousing
Efficient warehousing is key to managing excess stock. Businesses should first enhance their own warehouse capabilities by exploring various strategies, including the reorganisation of shelves, the implementation of vertical storage solutions, and the utilisation of any available mezzanine space. However, when confronted with lower-value or slow-moving stock that occupies valuable room in warehouses, outsourcing to an external warehouse becomes a viable solution.
Exploring strategic partnerships with flexible warehouse providers or third-party logistics (3PL) services is an ideal solution when lower-value or slow-moving stock occupies valuable room in a business’s own warehouse. Choosing a flexible warehouse provider or 3PL that adapts to the evolving needs of the business allows for seamless transitions during periods like January sales or clearance promotions.
These agile partners not only provide additional storage capacity when needed but also contribute expertise in managing the logistics of post-Christmas strategies. By collaborating with a flexible warehouse provider or 3PL, businesses can offload storing, management and distribution of excess stock during promotional periods. This strategic collaboration enables businesses to direct their attention towards preparing for the next peak period, confident that their excess stock is in capable hands.
Effective Inventory Management Post-Christmas Stock Surplus
To further enhance warehouse operations, the incorporation of technology, such as Warehouse Management Systems (WMS), proves essential. These systems not only allow for full inventory visibility but also streamline storage management, creating a more efficient and organised warehouse environment.
Utilising efficient inventory management with excess stock, also lends itself to categorising assets using the ABC classification method – you can learn more about this classification in our other blog.
WMS also assist with demand forecasting. Businesses that use these tools and integrate advanced analytics and artificial intelligence get a deeper understanding of customer trends and behaviour. Using this data, SMEs can align inventory levels more accurately with actual demand, minimising the likelihood of accumulating excess stock.
This forward-thinking approach ensures that businesses are not only adept at managing current challenges but are also well-prepared for the demands of upcoming peak periods.
The Challenge of Optimising Returns Handling
Christmas often brings an upturn in returns – optimising returns handling for SMEs during the post-Christmas period involves implementing customer-friendly policies and efficient processes. Clear and simple returns policies, along with easy return procedures, encourage customers to adhere to guidelines.
Collaborating with third-party logistics providers for this process and establishing effective reverse logistics strategies contribute to a comprehensive approach for managing returns efficiently. Additionally, analysing return data provides valuable insights, enabling businesses to address any underlying issues and continuously improve their products and services.
SMEs can also turn returns into opportunities by creating a dedicated section for reselling returned items in good condition. This not only minimises losses but also provides an additional avenue for sales and contributes to sustainable practises.
Explore Repackaging and Bundling Options
Co-packing can transform excess stock into innovative and eye-catching product bundles or repackaged items, enhancing their appeal. Collaborate with your 3PL provider and marketing teams to explore co-packing options, ensuring the creation of attractive offerings that resonate with consumers. By incorporating co-packing into your approach, you not only add value to your products but also introduce a fresh and appealing presentation that can stimulate interest and expedite clearance.
Co-packing can also be a sustainable strategy to minimise waste. By repackaging or bundling excess post-Christmas stock, you can reduce the environmental impact associated with unsold goods while simultaneously offering consumers unique and value-added options.
Where all else fails, recycle.
When traditional storage or repurposing strategies fall short in effectively managing excess stock, creating a recycling program can be a strategic solution. 3PLs with experience in recycling, can assist business in diverting excess stock from landfills by exploring options including donation, auction or repurposing with a waste to energy solution offered as a last resort. This helps businesses align with environmental sustainability goals but also showcases a commitment to responsible business practices. By leveraging the resources and knowledge of a 3PL, businesses can create a circular economy for their excess stock, minimising waste and contributing to a more eco-friendly supply chain.
