As the final quarter of 2025 approaches, procurement and inventory managers face mounting pressure to clear excess and obsolete (E&O) stock, balance budget sheets, and make room for next year’s inventory. With carrying costs eating up 15–30% of total inventory value annually, unsold goods are more than just dead weight; they’re draining profit margins
Warehouse constraints and ongoing depreciation can cut profits, but Q4 is your chance to make smart inventory moves that boost efficiency, sustainability, and financial performance for end-of-year reports.
At Component Sense, we help electronics manufacturers turn E&O challenges into opportunities. Keep reading to find out how you can finish the year strong.
1. Audit and Prioritise Your Stock
A year-end stock audit highlights slow-moving and obsolete parts. By prioritising redistribution or resale, you can unlock warehouse space and recover cash.
A detailed stock audit in Q4 reveals what’s moving, what’s stalled, and what’s costing you money. Pay close attention to E&O components as these items are quietly depreciating, tying up space and capital.
At Component Sense, our redistribution solutions, from InPlant™ and consignment to outright purchase, help you recover value from flagged stock instead of writing it off.
Key actions for your audit:
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Identify fast vs. slow-moving items
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Highlight components nearing depreciation
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Flag E&O for redistribution
Top tip: Use automated inventory tools to spot slow movers early and act before depreciation eats into your margins.
2. Redistribute Instead of Writing Off
When excess stock accumulates, many manufacturers default to disposal, which leads to electronic waste (e-waste), or expensive write-offs. Redistributing E&O stock lets you recover value, reduce write-offs, and improve sustainability. Our global redistribution network matches your stock with buyers, ensuring you recover cash value while supporting your sustainability goals.
Top tip: Learn how to redistribute your E&O stock to companies that need it now.
3. Free Up Warehouse Space Before Year-End
Warehouse inefficiency is a camouflaged cost. As orders increase during Q4, space constraints hurt efficiency and inflate storage costs. Clearing excess stock reduces storage costs and creates space for high-value components. Through consignment or outright purchase, we can help you clear valuable space and reduce overheads instantly, as well as:
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Consolidate inventory
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Redistribute excess components
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Rebalance stock between sites
Top tip: Offload slow-moving or obsolete stock instead of scrapping to free up premium warehouse space.
4. Align with ESG Commitments
With 96% of the world’s largest companies now reporting on sustainability, many manufacturers close Q4 with a renewed focus on environmental, social, and governance (ESG) reporting. Inventory management is often overlooked in sustainability reporting, but E&O stock has a direct ESG impact.
Sustainable inventory practices can help improve ESG performance while reducing waste and cost. By cutting waste and avoiding overproduction, you improve both your sustainability record and bottom line. Our InPlant™ solution embeds inventory expertise into your operations, ensuring your 2026 supply chain is leaner, greener, and more profitable.
Top tip: Choose sustainable redistribution instead of landfill or destruction.
5. Plan Smarter for Next Year
Just-in-Time (JIT) and Just-in-Case (JIC) models both bring risk. Q4 is the time to reassess and build resilience into your 2026 inventory strategy.
Top tip: Use Q4 insights to set reorder thresholds, rebalance stock, and strengthen supplier relationships.
Summary
Smart Q4 inventory management isn’t just about closing the books; it is about reducing excess and obsolete stock, freeing up warehouse space, and preparing your supply chain for the next year.
Whether through outright purchase, consignment, or our InPlant™ solution, Component Sense helps you transform excess stock from a liability into an opportunity.