Slow-moving and Obsolete inventory (SMO) is one of the crucial challenges to tackle in almost every OEM perhaps due to its common causes. Slow-moving and Obsolete Inventory could originate due to a lack of accuracy in forecasting demand, production planning, and other shortcomings while managing the Inventory. This may lead to various challenges as the stock becomes less productive and increases costs in Inventory management. Moreover, the Slow-moving Inventory may become Obsolete or dead stock which could impact the revenue if not dealt with on time. Thus, addressing the Slow Moving stock or Obsolete Inventory becomes significant in achieving the company’s financial targets.
In this blog, we will explore how Entytle, a leading solution provider, can help Industrial Original Equipment Manufacturers (OEMs) tackle the complexities of SMO inventory and unlock hidden opportunities for increased sales and improved inventory management.
Understanding the Problem of Slow-Moving and Obsolete Inventory
If the Slow-Moving and Obsolete inventory is not taken care of in time, it becomes a significant challenge for any OEM. The risk of obsolescence looms large, which can have a detrimental impact on a company’s bottom line. Balancing inventory levels is challenging due to the dynamic nature of demand, and excessive stock items can lead to financial losses and operational disruptions.
Entytle’s Slow Moving and Obsolete Inventory targeted feature
Entytle’s Installed base and Aftermarket Growth platform offer a comprehensive solution for identifying and managing SMO inventory. Designed for sales teams, inventory managers, and marketing teams, Entytle’s SMO feature provides invaluable insights to help businesses make informed decisions. By swiftly identifying slow-moving and obsolete items, Entytle enables companies to proactively address the issue before it worsens.
Benefits of Entytle’s Slow-Moving and Obsolete Inventory Solution
Old Inventory Liquidation
Entytle empowers businesses to slash prices and create targeted sales campaigns to swiftly clear slow-moving stock at the end of a season. Entytle SMO helps capture customers’ attention and drive urgent purchases by identifying historical accounts and creating a target list in minutes.
Bundle Items for Increased Sales
Pairing slow-moving inventory with high-demand products through Entytle SMO can be a highly effective bundling strategy. Customers perceive bundled offerings as excellent deals, providing them with multiple products at a discounted price. By leveraging Entytle SMO in conjunction with Aftermarket Intelligent kits, OEMs can create compelling sales campaigns that drive customer engagement.
How does it Work?
Step 1: Entytle’s Installed Base and Aftermarket tool identifies the Slow Moving and Obsolete stock for customers who had a purchasing history of the related Equipment by leveraging the implemented historical data from Entyle’s Installed Base application
Step 2: Entytle then creates opportunities for the identified Locations and generates a dedicated Pipeline to track them. Every opportunity contains the location details of the Installed Equipment along with the recommended item details and revenue of the Slow-Moving or excess stock to target their customers as per requirement.
Step 3: Opportunities also include the Contact information for the Sales representatives to re-engage with the customers. Sales reps could access the opportunities using the Entytle Insights platform and view the options as per their assigned territory. This is critical for the Sales Users as they can only target the Accounts from their territory.
How can you Access the Slow-Moving Obsolete Inventory Solution?
Existing customers can leverage Entytle’s SMO solution by submitting a request to our Customer Success team. They can create opportunities that are easily tagged with pipelines, enabling efficient tracking and management.
In the future, prospects will also have access to this lightweight offering on a self-serve basis or as part of a free trial, further democratizing the benefits of Entytle’s SMO capabilities.
Entytle stands out in the market by leveraging the power of installed base and customer interaction data to solve the complex challenge of slow-moving and excess inventory. Through Entytle Insights, businesses gain valuable insights into buying patterns, industry segments, and utilization rates. This empowers marketing, sales, and services teams to make well-timed and targeted offerings of parts, services, or consumables. By eliminating guesswork and providing data-driven recommendations, Entytle enables OEMs to optimize their inventory management, increase sales, and enhance customer satisfaction.
Managing slow-moving and obsolete inventory is crucial for Industrial OEMs to maintain efficiency and profitability. Entytle’s SMO solution provides a powerful toolset to address this challenge. By swiftly identifying SMO items, offering solutions for old inventory liquidation, and enabling effective bundling strategies, businesses can optimize their inventory management with Entytle. With seamless integration into existing workflows and access to valuable insights, Entytle’s SMO solution is a game-changer for decision-makers seeking to clear SMO inventory, drive sales, and improve overall operational efficiency in the competitive Industrial landscape. Also, read about best practices for optimizing Industrial spare parts inventory management.