It is no secret that many companies have at one point in running business dealt with a dead stock problem. You have goods stored that are no longer being bought. When you have dead stock, the business will most likely suffer a reduced cash flow that might have gone into more meaningful use. Dead stock also uses up precious storage space and other expenses that tag along.
Not all companies, however, have had to deal with a dead stock problem.
Teelaunch, a print on demand fulfillment company is making it possible for its customers to completely do away with dead stock. As such, the company is saving clients up to 30 percent, money they would have previously had to spend on expenses related to bulk production, transportation and storage. The following article discusses the print on demand model and how it can help companies eliminate a dead stock problem.
How To Avoid Dead Stock With Print on Demand.
The most important benefit of print on demand is the elimination of product storage costs, inventory, and raw material. While the inventory of finished goods was considered an asset in the traditional production method, it is not the case with print on demand. The latter has changed the status quo and now inventory is simply referred to as dead investment, waste, or in the fairest description possible, unnecessarily incurring additional costs.
With print on demand, a company is able to create products quickly and put them up for sale in a very short time. You just need to have the design ready, and as a matter of fact, you can use one design for several products. Once you have adopted print on demand there will be nothing like holding an inventory. As such, the business enjoys low investment and even lower risk.
Design, Test, Sell, and Grow
Though critics have attempted to downplay print on demand by claiming that it is not as profitable as the traditional route, the former boasts of some unparalleled advantages.
Firstly, print on demand adds value to finished products due to its increased efficiency.
Secondly, the fact that you are not holding any inventory physically, it will be easier to add or remove products, test new ideas, and pivot business strategies.
Thirdly, testing a design or a product like print on demand companies do allows them to avoid making costly mistakes.
For instance, in the traditional method, a company would produce hundreds or thousands of products on a specific design, only to find out that they made a mistake in the process and now the products cannot go to the market.
With the print on demand model, however, such mistakes are almost unheard of. Once the first product is done, if it is not up to the client’s specifications, edits can be done on the spot thereby avoiding a massive loss or stored products without a buyer.
The print on demand model also allows the business to grow in terms of innovation. The reason behind this is that with customers always coming up with unique ideas for the products they want, the business can only steer in the right direction in terms of keeping up to date with the latest industry trends.
Eliminate The Traditional Guesswork
In the traditional bulk production model, companies had to invest lots of money in inventory management. There was always the need to accurately predict demand for a product, which in most cases ended up creating a dead stock problem for producers.
Companies that still invest in forecasting demand are no better than any other establishment applying pure guesswork in business. Forecasting involves too many variables that make the process all the more unsure and unreliable. Print on demand is a surer and less risky production method. Companies that choose print on demand over the traditional route don’t have to go through the trouble of projecting the future.
The key to avoiding dead stock in any business lies in first identifying the cause of ‘death’, and then monitoring and preventing future dead stock. The only sure way of hitting these two birds with one stone is to change from the traditional route to a print on demand model.