Illiquid assets are Illiquid assets of factories, enterprises

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Illiquid products are products that are formed in the company's warehouses as a result of a sharp decrease in demand, strategic shortcomings or personnel errors. These stocks are "frozen" funds, so necessary in the economic turnover. In addition, additional costs are required for the maintenance of illiquid assets. In this case, the loss of their presentation is possible. That is why every enterprise seeks to get rid of the illiquid assets accumulated in its warehouses as soon as possible. This task is creative, and in each case it will need to be solved individually.

How to identify illiquid?

It is simply impossible to give an unambiguous answer to this question. Illiquid assets of enterprises are different. In addition, even in the same company, but at different sites, different criteria are used to identify unused reserves.

For some products, this may be a complete lack of customer demand, and for others, low sales compared to stocks. It is impossible to get rid of illiquid assets until there is a clear, unambiguous standard. As a rule, this is a certain period, longer than which the storage of balances in the warehouse is unprofitable for the organization, even if the goods are sold in large quantities.batches.

Check for availability

After analyzing the products using the accepted standard, it will be necessary to check whether this illiquid product is physically in the warehouse. This is a very responsible condition, because stale goods for a long period of storage may lose their presentation, disappear or be on the sorting list.

Reasons for appearance

So, you have checked and made sure that there is indeed illiquid stock in stock. This was the first step towards its elimination. At the next stage, you need to understand the reason for the transfer of products to the category of illiquid assets.

Sometimes stocks stay in warehouses due to their incorrect placement in the item catalog. This is possible if the code is assigned to the product by mistake. In this case, to eliminate illiquid assets, it is enough to simply put such products in the line of the desired category. Then, instead of illiquid assets, the organization will receive a good inventory.

In some situations, the formation of illiquid assets is facilitated by a new substitute product, which pulls over all sales. It's better to just not let that happen. First, the remnants of the old position must be sold, and only then the newly received products are offered to consumers. If such a moment was missed, then the new product should be reserved for some time, putting the old stocks on sale.

Sometimes there are situations when illiquid assets are formed as a result of staff errors. It's just that everyone forgets about the goods reserved in the warehouse.

Complex equipment turns out to be in illiquid assets,which is not in high demand. In this case, it will be more profitable to sell it in parts. An illiquid position can be understaffed so that it can be bought faster. Illiquid spare parts may form. Often these are parts that are ordered by mistake.

Return

As a rule, companies tend to sell the illiquid stock formed in the warehouse. It is advisable to do this only after an attempt to return stale stock to the supplier. This rule is especially relevant for those distributors who do not produce goods themselves, and their customers are not end users. Their sales market is not as large as that of suppliers. In the event of a return, the manufacturing company can always profitably sell goods that were considered illiquid for the distributor company.

Discount

The sale of illiquid assets can be carried out using discounts. This is the most common way to get rid of unnecessary inventory. This method is popular due to its simplicity. However, it is not currently effective enough. The fact is that some companies began to apply pseudo-discounts. They raise prices in price lists so as not to lose anything in terms of money. Despite this, discounts are a very real way that is used in order to eliminate illiquid assets. This will allow the company to receive a certain amount of money to buy the inventory it needs.

There is an erroneous opinion that illiquid assets should be sold with minimal profit or at least no loss. However, this is misleading. Presence itselfstale asset is unprofitable for the enterprise. These products or raw materials require certain storage costs. Therefore, you should not set yourself the task of generating income. An unclaimed resource should be sold at the price for which they agree to buy it.

Types of sale of stale reserves

Illiquid assets of factories and enterprises can be eliminated in various ways. Among them are the following:

- a barter scheme, when one product is exchanged for another (with this option, what is considered illiquid for your enterprise is exchanged for the desired product);

- payment of wages to employees with illiquid products;- payment by unclaimed assets for overdue accounts payable.

If all these methods are applied wisely, they will not only get rid of stale goods, but also solve some of the company's pressing problems.

Illiquid assets of Ukraine, Russia and other countries of the post-Soviet space can be purchased on the websites of companies. It offers used equipment, spare parts, as well as materials.

Organization of getting rid of illiquid assets

In order for the process of selling unclaimed assets to be as successful as possible, one of the top managers should be appointed to oversee this project. At the same time, you should place information about the promotions held by the company on your website.

Sometimes it happens that customers do not buy a new product just becausethat they do not know about its merits. And then this product falls into the category of illiquid assets. In such cases, additional informing of clients is required. If the company has a network of branches, then you should check if this position is in demand in any of them. If so, the product is simply transferred to where it is in short supply.

Attention should be paid to the seasonality of goods. Do not rush to sell illiquid before the start of the period in which there is a demand for it, because soon it will become popular.

Measures to prevent illiquid assets

In the work of any enterprise, it is important to properly form stocks. This is much easier than later dealing with the sale of illiquid assets.

For the correct formation of stocks, it will be necessary to establish a clear accounting. In case of failures in the transfer of information from one unit to another, the risk of formation of illiquid assets increases significantly. The organization of convenient reporting on all balances and sales of goods is required.

Reducing purchases will also prevent the appearance of unclaimed stocks. It is necessary to determine in time which of the assets can become illiquid. Such an analysis is carried out regularly, and the organizational policy is adjusted based on its results.

For any enterprise important aspects are forecasting and planning the volume of sales of goods. This will prevent their surplus in warehouses.

It is important to decide on the optimal delivery batch. The lower the amount of inventory supplied, the lower the riskthe occurrence of illiquidity. But it is worth remembering that small batches of products require serious transportation costs. This is also not beneficial for the company.

There is another parameter that affects the amount of inventory. It is the level of satisfaction of demand with balances. This indicator must be calculated when conducting an analysis of the need for reserves. At the same time, its values should be such that, on the one hand, to prevent interruptions in the operation of the enterprise, and on the other hand, to eliminate the likelihood of illiquid assets.