Dead stock refers to inventory that has not been sold for a long period and is unlikely to be sold in the future. It's a silent profit killer, taking up valuable warehouse space and tying up cash. Here’s how to deal with it.
How to Identify Dead Stock
The first step is to know it exists. Use your inventory management software, like the Business Portal, to run an 'inventory aging' report. This report shows you how long each item has been sitting in your warehouse. Any item that hasn't sold in the last 6 to 12 months is a candidate for dead stock.
Strategies to Clear Dead Stock- Flash Sales or Clearance Events: Offer a significant discount to move the products quickly.
- Product Bundling: Bundle a slow-moving item with a bestseller as a value package.
- Donations: Donating the stock can provide a tax write-off and generate goodwill for your brand.
- Liquidation: Sell the stock in bulk to a liquidation company as a last resort to recover some cost.
How to Prevent It
Use the sales data from your Business Portal to make better forecasting and purchasing decisions. By understanding trends, you can avoid overstocking on items that are unlikely to sell.
