![]() On the other hand, even with durable goods thought of as nonperishable, the value can still decline over time as degradation or obsolescence happens slowly. The same is true for tickets to sporting events and concerts, group slots for an escape room and any other experiential products that happen at particular times. Some perishable inventory isn’t even “inventory” in the traditional sense - it’s really the theater seat, not the ticket, that the buyer wants. In other cases, the decline in value is more of a step function, like a computer chip that goes from state-of-the-art to good to usable to completely obsolete as successive generations get released. In the case of a floral arrangement, the value may decline more steadily to zero over time, as value is measured in how many days remain for a customer to enjoy the flowers. Some perishable inventory loses its value all at once, such as a theater ticket when the curtain goes up. While some forms of perishable inventory are easily recognized and intuitive, such as food products with printed expiration dates that are never more than a few weeks away, other forms of perishable inventory are less obvious. A combination of data gathering, information technology, analytics, relationship building and innovative thinking can make perishable inventory management a manageable challenge.The unique risk of perishable inventory is that unsold products may expire with no residual value, and the entire investment and opportunity can be lost.Some techniques for managing perishable inventory are the same as, or are similar to, techniques used for other kinds of inventory management, but with perishable inventory there are extra considerations.Perishable inventory is inventory that expires or otherwise loses value over time.Revenue management strategies focus on maximizing profits from non-stock perishable inventory, such as hotel nights, airline tickets and rounds of golf. While some of the techniques and strategies discussed here apply to all kinds of perishable inventory, the focus is on perishable stock. Yogurt and floral bouquets are both perishable inventory and stock, while rounds of golf and nights in a hotel are perishable inventory but can’t be stocked in a refrigerated warehouse like yogurt. Perishable stock tends to specifically refer more to perishable goods that can be stocked. ![]() Perishable inventory and perishable stock are often used interchangeably, but, in practice, sometimes they are equivalent and sometimes they aren’t. Sometimes product quality perishes gradually, like a market research report that becomes less relevant (and, therefore, less valuable) as time goes on, and sometimes it happens instantaneously, like the value of a ticket for a seat on an airplane after the plane takes off. Perishable inventory consists of products that expire or lose value over time, eventually becoming worthless. ![]() What Is Perishable Inventory or Perishable Stock? By giving special attention to perishable inventory and applying the right strategies, tools and techniques, businesses can improve their bottom line by reducing unnecessary losses and making the most of their opportunities - before they expire. Inventory management is a challenge faced by any business selling a product, but the challenge is particularly acute for businesses dealing in products that expire or quickly lose value over time. East, Nordics and Other Regions (opens in new tab) ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |