How to protect your brand and standard sales channels during surplus and obsolete clearance sales?
Selling obsolete items shouldn't conflict with standard sales channels, destabilize prices, or create a lasting brand association with the sale. A controlled model with clear rules is necessary.
What is Obsolete Trading Platform?
Obsoletes should be sold in compliance with standard channels, product requirements and brand positioning.
All arrangements for the sale of obsoletes must be enforceable, recorded, and reportable.
The foundation of the process is prior product qualification. Learn what FMCG obsoletes are and what data is worth collecting .
Scattering instead of one drop
The dispersion of sales among many smaller buyers limits the visibility of a single discount and the dependence on a single customer.
This controlled dispersion avoids price monitoring and protects standard sales channels.
The pace of sales must be rapid and sustainable so that the market can safely absorb the stock at a lower price.
Each buyer on OTP independently sets their own selling price. The terms of cooperation apply only to permitted channels, markets, volumes, and logistics.
Transparency and reporting
The manufacturer should know how much was sold, at what average price, to which segments and to which markets.
Reporting is a control tool and a source of conclusions for subsequent S&OP processes.
The role of OTP
OTP aggregates dispersed demand and fully handles the entire process of clearing out obsolete and surplus stock.
The cooperation model is selected according to the type of product and brand risk.
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​The full cooperation model is described on the FMCG Surplus and Obsolete Management page.