Storage is far more than the simple stacking of boxes and pallets, but you already knew that. Every type of item comes with its own set of challenges, different climates affect what you can and can’t do, and everything must be done in accordance with the local laws. There are also specific peak-season and off-season warehouse problems that have to be faced. Even the largest national shipping company of Saudi Arabia must constantly evolve its methods to meet the needs of the modern era. Depending on the product you manufacture, there are certain demand and storage factors you should consider. Let’s take a look at 2 common off-season issues for manufacturers and some possible solutions.
Storing Superfluous Stock During the Off-Season
You want to sell as many products as you can, naturally. This means that you need to manufacture enough to satisfy any potential demand. While estimating the size of the demand for your product can be a science in itself, at the end of the day, it’s a guessing game based on the best information available. Overestimations are common. Manufacturing seasonal products is especially challenging, as you have a narrow time-frame to sell them. For instance, if you are selling holiday decorations, it is unlikely you will manage to sell them during the off-season. Primarily, storing these products increases your warehouse costs. However, they also occupy the space that is needed to store your other products. Contact warehouse Riyadh to ask them about specific products that cause common off-season warehouse problems for manufacturers.
Stockpiling Dead Stock
You can consider dead stock the worst possible outcome of superfluous stock. They are items that are out of season, but are also unlikely to sell in the future. They will not make you a profit – quite the opposite, they are likely to incur losses. Let’s go back to our holiday decorations example. You manufactured more than enough and now have to store them. Even though this is already causing you warehouse storage problems, you can still sell generic decorations next season. However, specifically themed decorations (for example, those with a year on them) are not going to sell when peak season comes again. This is also the case with out-dated items, specifically tech products. Tech has a short shelf life and can easily become dead stock.
Solutions for Off-Season Warehouse Problems
First off, we must say that there are no full-proof solutions. The optimal option is to prevent off-season warehouse problems through good planning. Look at your past sales and those of your competitors, account for the upcoming rise or fall in demand, and make as accurate a forecast as you can. You can hire experts and use software to help with this. If most of your items are sold, there is no problem to begin with. When you do find yourself in the situation of stockpiling off-season stock, it may be best to sell it at a significantly lower price. You don’t need to make a profit, just not add additional storage costs. Storage Saudi Arabia is full of dead stock, which is the worst that can happen. Sometimes in life you need to know when to cut your losses.