It’s a tightrope you walk every day: Keeping enough inventory on hand that you always have what you need — without tying up too much of your company’s cash. It used to be easier. Sales were more predictable. Your ordering habits were consistent. You knew what to expect, and when to expect it.

Well, as you’re aware, it ain’t working like that anymore.

The economic slowdown have a ripple effect: Your shelves are starting to groan with inventory. While some stockpiling can protect you in unpredictable times, the cost of carrying extra stock is growing way too high.

So how do you know where to begin putting on the brakes?

One easy way to get started: Take the white glove test.

Explore your inventory area, and check for accumulated dust (you don’t really need a white glove). Take a fresh eye to what’s piled up in the corners and cluttering your aisles. How long has it been there? Do we still need to keep it so handy?

Once you’ve put together a “hit list,” there are two strategies you can try:

Bargain basement sale. Talk to Sales and Marketing. Is there some way to package this inventory to make it more appealing to customers? Maybe it’s a “buy now pay now” discount. It could also be a “buy three get one free” promotion. They’ll have a better idea of what customers will go for.

Help from the source.  Are any of your suppliers willing to reward your good history as a customer? Maybe they can “take back” some of the inventory and store it for you. That way, you can get it on a just-in-time basis, and keep your shelves clear. This not only makes room for other inventory, it also spares your staff from counting and tracking it — time and money.

Tags: customers, inventory, ordering, sales, supplier