Issues such as abrupt end-of-life scenarios and weak demand can lead to warehouses becoming swamped with slow moving inventories that tie up capital and take up much-needed storage space.
Recently, news emerged that BMW, the German-based automotive company, is contending with an excess problem of its own and plans to spend the next six weeks or so liquidating certain inventories housed in its U.S facilities.
The move is due to slow sales in North America, as Friedrich Eichiner, BMW’s Chief Financial officer, admitted that “we are adjusting our production plans” earlier this month.
“We took a decision early on to clean up inventories to prepare for maybe a flatter market.”
At the start of the year, AutoNation, one of the United States’ biggest car retailers, warned that there was a bulging inventory of unsold cars, especially in the premium sector.
Speaking on the issue of a slowing market, Alexander Bilgeri, a representative for BMW’s North American operations, claimed that all luxury brands were suffering.
“Affluent customers generally ride out recessions, but specific market volatilities can directly affect the premium vehicle market, and that’s what we’re experiencing right now.”
Predicting the future is nigh on impossible and because of that, all OEMs are likely to suffer from problems relating to excess stock at one time or another.
Luckily, Trading Specialists can help provide solutions to all manner of businesses.
If you have pallets of leftover electronics components from previously scheduled production runs, or simply need to get rid of some surplus stock, then get in touch with us today
Your stock might not hold much value to your company, but we are the experts in maximising and monetising your excess inventories and providing you with a welcome cash injection.