Key Takeaways
- Identify dead stock with ageing reports before it becomes unsellable.
- Clear it through bundles, discounts, returns to suppliers or liquidation.
- Prevent it with better forecasting and smaller, more frequent orders.
Many Indian businesses carry a large share of inventory that has not moved in months. It ties up working capital and warehouse space.
9 strategies
- Run stock ageing reports monthly
- Classify items using ABC (value) and XYZ (demand variability)
- Bundle slow movers with fast movers
- Run targeted discounts or clearance sales
- Negotiate returns or exchanges with suppliers
- Sell to liquidators or B2B buyers
- Reduce minimum order quantities
- Improve forecasting
- Set alerts for items with no movement in 60–90 days
Prevention
| Cause | Fix |
|---|---|
| Over-buying for discounts | Compare carrying cost vs discount |
| Poor forecasting | Data-driven reorder levels |
| SKU proliferation | Rationalise catalogue |
| No visibility | Dashboards and alerts |
See AI demand forecasting and ERP ROI.
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Frequently Asked Questions
What is dead stock?
Inventory that has not sold for a long period and is unlikely to sell at normal prices.
How can I identify slow-moving stock?
Use stock ageing and movement reports in inventory software.
What is XYZ analysis?
Classifying items by demand variability to set appropriate stock strategies.
Does software prevent dead stock?
Software provides visibility, alerts and forecasting that help prevent it.
