Dead Stock: What is it and How to Avoid it?

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• Dead stock is inventory that a business has acquired but which will never be sold due to obsolescence, overstock, or other reasons

• Dead stock is inventory that is not sold or expected to be sold in the future. This includes items that are out of season, have been discontinued, or are no longer in demand.

• Dead stock often represents a large financial loss for companies, as they have spent money producing and stocking the inventory

• 5 Ways to Avoid Dead Stock

• What to do with Dead Stock?

• 6 Causes of Dead Stock

• Dead stock can lead to a build-up of obsolete items which can create storage and organizational problems, leading to higher inventory carrying costs. Dead stock can lead to a decrease in cash flow because the inventory is not being sold, resulting in a loss of potential profit. Dead stock can also lead to inaccurate inventory counts, which can have wider implications for inventory forecasting and replenishment. This can lead to stock shortages and stock-outs, resulting in customer dissatisfaction and missed sales.

• dead stock takes up valuable storage space, which could be better used to store other inventory that is more likely to sell.

• it can tie up capital that could be used to purchase more profitable inventory.

• it can lead to inaccurate inventory tracking since the dead stock is rarely updated in the system.

• stocking and managing dead stock can be labor-intensive and time-consuming, both of which add to operational costs.

• Strategies to Reduce Dead Stock