3rd May 2022
Inventory and working capital can sometimes seem to have a complex relationship. If your working capital is reduced because you are holding on to a large amount of surplus inventory, it can limit your business growth capability and cause a bottleneck in different parts of the organisation. However, having too little inventory can also be very bad for business, if you find yourself unable to fulfil orders or there are long delays that might send your customers looking elsewhere instead. The key is to find the right balance between the inventory you need to hold onto to mitigate this risk, and inventory that can essentially be turned into cash that can be used in other areas of the business.
Letting go of unneeded inventory can not only bring a much-needed injection of capital into your business, it may also mean that you can reduce storage costs for the inventory that you’re no longer having to find space for, or free up room for other kinds of inventory that will bring a quicker or better return for your organisation.
Many businesses also find that they are holding onto inventory that is essentially obsolete, but because of the investment the business made into this stock, you’re still holding onto it. This can sometimes be the case for many years, with this redundant inventory taking up space in your facility, but not serving an active business purpose.
At EP4, we specialise in sourcing and supplying electrical, controls and automation products to industry, so some of your surplus inventory could be exactly what we’re looking for. We can help you turn your unwanted parts and products into cash so you can invest the money elsewhere. Whether it’s new stock or obsolete items, we can provide a quick quote and fast turnaround times.
Some of the excess inventory that we’re always on the lookout for are new and in-box items including, but not limited to:
