Reframe your excess problems as inventory solutions to support long-term growth and supply chain stability.
WHAT DOES YOUR EXCESS INVENTORY HAVE IN COMMON WITH A SLOW ELEVATOR? BOTH PRESENT THE OPPORTUNITY FOR REFRAMING—FROM AN ENJOYABLE RIDE TO INVENTORY SOLUTIONS.
Taking decisive action is better than sitting on a problem—especially when it comes to excess inventory—but pausing to reframe your problem can open up a host of new and improved solutions. While reframing is one of the classic business school exercises, it doesn’t require an MBA to apply. Here’s how you can reframe your “excess problems” into inventory solutions and reap the benefits from that mindset shift.
The Elevator Problem
The “Elevator Problem” presents a classic example of how reframing to solve a different problem can save you time and money. Let’s say you are a building owner, and there’s an elevator in your lobby that the tenants complain runs too slowly. They are getting frustrated and demanding change. Jumping straight to the solution of installing a newer, faster, more expensive elevator is tempting.
But pausing to evaluate the problem with the building managers yields a surprising suggestion: they recommend installing mirrors. Suddenly, the complaints are gone. People no longer mind the wait as they have a chance to gaze at themselves. As Harvard Business Review points out:
“The point of reframing is not to find the “real” problem but, rather, to see if there is a better one to solve. In fact, the very idea that a single root problem exists may be misleading; problems are typically multicausal and can be addressed in many ways.”
Excess components present you with the same opportunity as the slow elevator. Even in a shortage market, and especially if you’ve stockpiled, you’ve probably got some excess supply on hand. The solution might seem like getting rid of your excess as quickly as possible. And generally, we’d confirm that the best course is taking action on your excess. But by jumping straight into off-loading excess at the first ROI pitch, you’d miss a crucial chance for problem-solving.
Reframe: Quick Offload versus Inventory Insight
Instead of immediately off-loading your excess components to solve your excess problem, consider reframing your needs as inventory insight and create a robust inventory before taking action. If you don’t know what you have, strategically venting your excess is impossible.
- Create an EOL schedule
Understanding what you have and when it will reach end-of-life or obsolescence helps you strategize the best timing to sell. Without this information, you run the risk of missing peak ROI and wasting valuable storage space.
- Consider consignment strategy as part of your inventory solutions
With more insight into your inventory, you might not be 100% ready to let go. Enter consignment. Consignment creates flexibility by offering the option to hold on to your excess and see some revenue return. This buffers against canceled builds and other unforeseen obstacles while holding your inventory safely and securely.
Timing is everything. Moving promptly to assess your inventory, creating innovative tracking solutions, and customizing your inventory solutions is an investment in your organization’s future success and stability.
Reframe: One-and-Done versus Building Long-Term Partnerships for Inventory Solutions
Excess is often approached from a transactional rather than a relationship mindset. Thinking about excess beyond a one-and-done type transaction opens up new growth opportunities. Instead of wading through all of the ROI pitches to find a quick sell, try approaching inventory solutions by outsourcing your global partnerships.
Even—and we might argue, especially—in a shortage market, strategically leveraging your excess inventory is essential. Serious, unexpected demands are cropping up in areas that we have never seen before. When you work with a global team, even the most minor parts can connect with a customer in need with a line-down situation. In turn, you might also source a product that unexpectedly has your line down. A global team working together can help all players in supply chain health by making strategic connections.
These are just a few suggestions. Once you begin reframing your excess problems, you will likely see possibilities for inventory solutions that are unique to your situation—yet another reason not to settle for an out-of-the-box transaction to resolve your excess problems.
了解更多