---
title: "Three Procedures to Quickly Eliminate Slow-Moving Products"
description: "This article outlines three key procedures for eliminating slow-moving products: selection criteria, elimination process, and handling methods. It emphasizes using sales rankings, minimum sales thresholds, and product quality to identify candidates, followed by a structured process involving inventory checks, supplier negotiations, and either actual or non-actual returns to minimize logistics costs."
author: "New Distribution"
publisher: "New Distribution"
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published: "2015-05-29"
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# Three Procedures to Quickly Eliminate Slow-Moving Products

> This article outlines three key procedures for eliminating slow-moving products: selection criteria, elimination process, and handling methods. It emphasizes using sales rankings, minimum sales thresholds, and product quality to identify candidates, followed by a structured process involving inventory checks, supplier negotiations, and either actual or non-actual returns to minimize logistics costs.

**I. Selection Criteria for Slow-Moving Products**
**1. Sales Ranking:**
Based on sales information from the company's POS system, select a number of products ranked at the bottom as candidates for elimination. The number of eliminated products should roughly match the number of new products introduced. When using the sales ranking as a criterion, consider two factors: first, whether the low-ranked products were purchased to ensure product assortment completeness; second, whether the low-ranked products are underperforming due to seasonal factors. If these factors cause the slow sales, be cautious about eliminating them.
**2. Minimum Sales Volume or Minimum Sales Amount:**
For products with low unit prices and large volumes, set a minimum sales volume or minimum sales amount. Products failing to meet this standard should be listed for elimination; otherwise, they occupy valuable shelf space and affect overall store sales. When implementing this standard, note whether poor sales are related to inappropriate layout or display positioning.
**3. Product Quality:**
Products declared unqualified by technical supervision or health departments should naturally be eliminated.
**II. Procedures for Product Elimination**
1. List the products to be eliminated and submit the list to the purchasing department supervisor for confirmation, verification, and approval.
2. Calculate the inventory quantity and value of all products to be eliminated.
3. Determine the elimination date. Supermarkets should set specific dates each month as product elimination days, on which the eliminated products are uniformly removed from shelves and await processing.
4. Deduct supplier payments for eliminated products. Check with the finance department whether the supplier of the eliminated products has unpaid payments; if so, process the accounting as a deduction for the eliminated products and return the products to the supplier.
5. Choose the handling method for slow-moving products.
6. Archive the records of eliminated products for future reference, to avoid reintroducing them due to time or personnel changes.
**III. Handling Methods for Slow-Moving Products**
Return handling is one of the core issues in eliminating slow-moving products.
To reduce invalid logistics costs during returns, the common practice is to negotiate with suppliers immediately after identifying the products to be eliminated, discussing return handling methods after 2 or 3 months, and striving to reach a return handling agreement. The two methods are: first, one-time price reduction; second, special promotion.
This modern return handling method is a non-actual return (i.e., the products are not actually returned to the supplier). Besides significantly reducing return logistics costs, it also enriches the promotional activities of chain supermarket companies. **It should be noted that:**
1. The standard for choosing between non-actual return and actual return is whether the loss from price reduction or special promotion is less than the logistics cost of actual return.
2. When adopting non-actual return, the "Return Handling Agreement" should reasonably determine the loss-sharing ratio between the chain operator and the supplier. The chain supermarket company must not seek small gains at the expense of its corporate image and reputation for good cooperation with suppliers.
3. Shelf life labeling is an important factor for consumers when choosing products. Chain operators and suppliers can also refer to the non-actual return handling method for eliminated products (although the products themselves are not eliminated) and sign a long-term "Return Handling Agreement" to incorporate the price reduction or special promotion of soon-to-expire or expired inventory into procedural management.
4. If the logistics cost of actual return is less than the loss from price reduction, and actual return is adopted, the supermarket company should make timely and unified arrangements for the removal of returned products from shelves and the adjustment and replenishment of empty display shelves to ensure continuity in the process.
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