Management of Obsolete Products A case study of a Swedish wholesaler focusing on product disposition alternatives

Abstract

Product life cycles have been getting shorter as a result of technological developments and increased customer expectations. A consequence of this is that subsequent product introductions overlap in time, which often times renders the previous version obsolete. Furthermore, this leads to total or partial loss of the value of the particular product, and therefore it is crucial for business to efficiently manage their product obsolescence process. The purpose of this thesis is to investigate how product obsolescence occurs and how it can be handled at a Swedish Electronics and HWS wholesaler. This is achieved by conducting a case study at Solar Sweden AB. The research approach for this thesis is qualitative and empirical results are primarily gathered through interviews and observations. The thesis highlights the challenges in the product obsolescence process, and specifically focuses on how different disposition alternatives should be utilized. The findings show that the process is complex which is determined by a large number of factors, both internally and externally. This requires a process that involves several departments within the firm, which in turn leads to a slow-moving process with many decision levels. To solve this issue, the authors provide a general framework with regards to the different possible disposition alternatives.