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Our Solution for Common Problematic Inventory


Quite simply, excess and obsolete inventory continues to be greatly problematic for manufacturers and brand owners in today’s volatile market worldwide.


Due to a variety of issues that are both predictable and unexpected, these problems require the type of sophisticated solutions that CLT International offers.

Your inventory problems may have spawned from any of these common complications:


  • Tier-1 Retailer Control

  • E-commerce Complications

  • Retailer Complexity

  • Unpredictability of Industry

COST

The average carrying cost is 25% of the total cost of inventory and on average, 15% of warehouse space is used for excess inventory.


Aside from associated costs that effect the extent of an inventory problem are:


  • Storage Cost - Warehousing or the storing of physical good before they are sold.

  • Labour Cost - Workforce needed to receive, organize, pick, and move inventory.

  • Opportunity Cost - Cost of carrying inventory could be spent more productively.

  • Deterioration Cost - Also factor in damaged, expired (or near expiration), or out-of-season items.

DISPOSAL METHODS & associated risks

Liquidation, specialty sales, and disposal or destruction of products have become the norm for attempting to offload problem inventory and continue to create more problem than solution.


Untrustworthy Liquidation

  • Manufacturers and retailers must be cautious that the brand is not damaged due to common untrustworthy closeout houses or liquidators.

  • Potential of products recycled back into mainstream retail channels where manufacturers will compete with their own brands.

  • This brand damage can also lead to stockholder and stakeholder displeasure.


Disposal & Destruction

  • Consumers are more aware of their own environmental footprint and the footprint of products that they purchase.

  • About 5 billion pounds of unsold goods and excess inventory fill US landfills every year.

  • Increased consumer awareness creates increased consumer reaction to how manufactures dispose of excess inventory that could lead to consumer boycott of a brand.

OUR TRUSTED SOLUTION

Manufacturers and brand owners utilize our specialized services as a trusted and effective alternative source to sell excess and obsolete inventory. With 30 years of proven results, CLT provides a level of care for customers that is scarcely found within the industry.


Compared to the risks of dealing with closeouts and liquidators, CLT offers a standard of service and attention contingent on our company values of Respect, Integrity, Accountability, and Transparency.


LEARN MORE:

Gis (Global Inventory Solutions) Deck -
Download • 8.60MB


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