Excess inventory and product obsolescence

[cosmeticqg]

Hi All- I'm starting a real discussion regarding "waste" management. Those of us who work with consumer products are aware of the fact that perfect unused product is often disposed in the garbage by retailers who are looking to place fresh new items on their shelves. Does anyone have any creative ways of working with customers to avoid the destruction of good unused product in field? I know there are donation orgs such as good360, but that can also be costly ( management and freight cost). Thoughts and all kids of suggestions and comments are much appreciated!

 

[Ed Panek]

Offer a small rebate program? Similar to bottles?

 

[cosmeticqg]

Hi All- I'm starting a real discussion regarding "waste" management. Those of us who work with consumer products are aware of the fact that perfect unused product is often disposed in the garbage by retailers who are looking to place fresh new items on their shelves. Does anyone have any creative ways of working with customers to avoid the destruction of good unused product in field? I know there are donation orgs such as good360, but that can also be costly ( management and freight cost). Thoughts and all kids of suggestions and comments are much appreciated!

* and all kinds, not kids!

 

[cosmeticqg]

Offer a small rebate prog

Offer a small rebate program? Similar to bottles?

Can you elaborate?

 

[Ed Panek]

Provide some small value to product they want to destroy so they don't destroy it. Im not sure how your market operates but its in the realm of recycling in what Im reading your description as.

 

[cosmeticqg]

Provide some small value to product they want to destroy so they don't destroy it. Im not sure how your market operates but its in the realm of recycling in what Im reading your description as.

Ahhh. Please take a look at this video-

Will retailers donate if it's incentivized? How can they be made accountable?

 

[Ed Panek]

Have you spoken to them? What is their situation and workflow?

 

[cosmeticqg]

The communication with the right functions is weak. The sales and marketing teams communicate with buyers who do not typically have a connection to their internal operations or sustainability teams. The sales-buyer relationship is typically focused solely on revenue.
For context, retailers manage excess inventory and consumer returns in one of the following ways:
1. Recycle and charge a fee to their suppliers
2. Send product back to their supplier (the supplier pays for freight)
3. Sell excess product to distributors who sell to second hand markets and bottom dwellers (Most suppliers want to avoid this situation)
4. Destroy in field- just throw all product that will not generate a profit in the trash.