Supply Chain
5 Reasons Why That’s No Longer In Stock
Chadwell Supply is always adding new items to our catalog. We want to be sure our customers have what they need to take care of their residents. To follow through on this commitment, our Purchasing and Merchandising teams carefully curate what we bring in and—equally as important—which items we no longer actively stock. Proper management of our active stock items allows our team to operate smoothly while setting accurate expectations for our customers.
Here are 5 reasons why an item may no longer be an actively stocked item:
1 – Regulations Changed
As we have seen this year with R-410A HVAC equipment, and in previous years with incandescent lighting and smoke alarms, government and/or industry regulations can force suppliers to adjust what they stock. Sometimes this is as simple as updating a label or a feature, other times—as with the A2L refrigerant shift—entire equipment lines must be replaced. When this happens, our team:
- Works proactively to develop a stock plan with our multifamily customers’ needs in mind
- Communicates stock levels and changes consistently before, during, and after the shift
- Updates catalog and web listings: flagging discontinued, while supplies last (WSL), and new items
2 – Product Discontinued
When a manufacturer updates product features or consolidates a line, they often stop producing under-selling, less efficient, or cost-prohibitive products. Streamlining production to focus on up-to-date products and features allows manufacturers to stay competitive and provide suppliers with the products customers need most. When a product is discontinued, our team evaluates alternative SKUs from various manufacturers to find a product that best fits our customers’ needs. If there is no exact alternative, we find the best possible fit and communicate this to customers.
3 – Demand Declined
Every product has a lifecycle. We can all think of products or features that were common a few years ago that have been updated, replaced, or done away with. This is true in multifamily MRO supply as well. If an item has seen 12+ months of minimal or no movement, it becomes a candidate for phase-out. Letting unsold product sit too long has significant business consequences, including:
- Reduced cash flow: Funds invested in dead inventory can’t be used for high-demand products or new opportunities.
- Lost warehouse efficiency: Valuable shelf space is taken up by items that aren’t selling, making it harder to manage fast-moving inventory efficiently.
- Increased holding costs: Storage, insurance, and handling expenses continue to add up even when the item isn’t moving.
- Potential obsolescence or disposal: Over time, specs change, or materials expire, which can lead to write-offs or discount liquidation.
When deciding whether or not to remove a product from our active inventory, our team reviews:
- Sales history: Is this an item that sells well in some places but not others? We adjust as needed to meet local, regional, and national demand.
- Customer use: Do we have contracted customers who need this item? We adjust inventory levels and locations while keeping those needs in mind.
- Replacement options: Are there newer, better-performing options available?
When these factors have been considered, some items are moved to “Special Order” status, so they remain available while others are removed and/or replaced.
4 – Logistical Challenges
There are a few reasons why our team might remove an item from active stock for logistical reasons.
- Recurring quality concerns or returns
- Extended lead times, inconsistent availability
- Cost increases that make the product uncompetitive
5 – Pricing Volatility
If a manufacturer cannot maintain competitive pricing and freight terms, we may choose to remove that item from active stock. While these suppliers may have quality products, this decision is made so that we are able to offer reliably consistent and competitive pricing for our customers.
How We Address Stock Shifts
In many cases, these stock changes happen due to factors outside the control of any supplier, but Chadwell Supply’s focus remains on maintaining continuity, minimizing any potential disruption, and delivering for our customers. When an item will no longer be included in our active stock, our Purchasing team will communicate this to our Operations and Merchandising, so that our branch stock and catalog remain up to date. Marketing and Sales then notify our customers so that they can make an informed decision to meet their needs.
Supply Chain News by Category:
See a breakdown of product categories and specific items affected here.
