Inventory Disposal Management

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Inventory Disposal Management is our Business

Surplus Parts Solutions

Long term parts trends The exploding technology of the last few decades has made service parts a declining profit center, in constant dollars, for many manufacturers.  Products last longer today (needing fewer repairs) and when they do, customers increasingly replace rather than repair.  Technology shortens product life – requires stocking more part numbers – and creates greater obsolescence which directly impacts profits.  These trends add to normal corporate conflicts.

 

Corporate conflicts

 

·     Finance does not want to retain inventory that doesn’t earn its keep. It understands the cost of owning inventory – and also when purging will reduce these costs and improve corporate cash flow.

·          Manufacturing needs long economical runs which build inventory and reduce per-piece cost.

·          Customer service is the image of your company.  It needs to build inventory to maintain a high degree of availability.

·          Tax law…Not only does finance have manufacturing and customer service conflicting with its goals, but it recognizes constraints from marketing and the IRS on excess inventory disposal.

The Berns Company is the Solution

 

Alternative to physically scrapping:

 

·          Purging excess inventory brings both mentioned benefits and new problems.  Our years of experience project future customer parts requirements for up to 30% of the inventory you purge periodically.  Unfortunately, the 2% to 3% yearly sales activity, over 10 or more years, does not cover its future ownership costs.  However, the rewards of continued availability are customer service, a positive product image, and repeat sales for complete units.

·          Filling future long-term needs:

We become another vendor in each manufacturers purchase order system, following policies and procedures like your other vendors except that a majority of our sales are single item emergency shipments.  This requires customizing our parts marketing to each manufacturer’s need.

·          All orders can be processed through you to maintain and monitor your quality standards and assure complete customer satisfaction.

·          Why Long Beach, California?

1.            A dry climate for long term storage.

2.            A major airport for fast customer service.

3.      The nations largest port facility for container shipping in Long Beach

4.     We are open long hours. Being located on the West Coast we can receive and ship orders long after the Midwest and the east are closed.

 

In Summary, The Berns Company can reduce your excess inventory, yet keep it available to you and your customers, keeping them happy for years to come. 

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