Dead Stock: How to Avoid It and Eliminate It Effectively

1. What Is Dead Stock?

Dead stock refers to products that:

• Haven’t sold for several months,

• Are seasonal, expired, or obsolete,

• Were misordered or poorly estimated.

Consequences:

• Loss of product value,

• Unnecessary storage costs,

• Risk of damage or expiration, especially in food or cosmetics.

 2. How to Identify Dead Stock

• Track products with zero sales in 90–180 days.

• Use an inventory system that shows stock age.

• Monitor product-level turnover rate.

• Set alerts for overstock or slow movers.

 Tools like Codstock can automatically flag risky items.

 3. How to Prevent It

• Base orders on data, not guesswork.

• Use the FIFO method (First In, First Out).

• Set alerts for low movement items.

• Perform regular stock audits (manual or digital).

• Avoid over-ordering or buying impulsively.

 4. What to Do With Existing Dead Stock

• Launch targeted promotions to clear it fast.

• Create bundles or packages with popular items.

• Offer BOGO deals (Buy One, Get One) or free gifts.

• Resell to other businesses at discounted prices.

• Donate or recycle to boost your brand image (CSR strategy).

 5. Pro Tip for 2025: Automate Your Monitoring

With software like Codstock, you can:

• Get alerts when a product slows down,

• Analyze turnover trends in one click,

• Adjust reorder levels in real time based on actual sales.