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Classically, unsaleables have been defined as products that are removed from the primary channel of distribution for any reason, e.g., damaged, discontinued, or expired items. (This definition excludes product recalls and returns as those items are managed outside of unsaleables policy.) In our study, we augmented the definition of unsaleables to also include discontinued and aged items with little or no demand that ultimately become unsaleables.
In this study, we want to discover and analyze the underlying causes of unsaleables throughout the value chain and identify actionable solutions companies can adopt and customize. This study identifies and measures unsaleables costs providing insight to opportunities that have a direct impact on the bottom line.