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Logistics

Dead stock

Quick answer

Goods unsold for a long period that lock capital and space, with little prospect of selling at normal price.

Key takeaways

  • Purchasing on intuition, not demand data
  • Seasonal products left after the season
  • Assortment errors / products replaced by new versions
  • Minimum order quantities (MOQ) too large

What dead stock is

Dead stock is merchandise that hasn't moved for a long time (e.g. 6-12 months) and is unlikely to sell at normal price. It locks capital, occupies valuable picking space and risks expiry or obsolescence.

Why it appears

  • Purchasing on intuition, not demand data
  • Seasonal products left after the season
  • Assortment errors / products replaced by new versions
  • Minimum order quantities (MOQ) too large

The hidden cost

Dead stock costs continuously: locked capital, space, insurance, handling. It often exceeds the loss from a quick liquidation. Rule: better liquidate now than pay storage forever.

How CRMconnect helps

CRMconnect automatically identifies zero/low-rotation stock per SKU, flags liquidation/promotion candidates, and prevents future build-up through demand-based replenishment, not intuition.

Real-world example

A retailer discovered dead stock only at the annual inventory. With rotation reporting in CRMconnect, products with no sales for over 6 months are flagged monthly; proactive liquidation freed 400 sqm of warehouse and ~150,000 RON in the first year.

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Frequently asked

When does stock become 'dead'?+

There's no universal threshold, but usually goods with no movement for 6-12 months. Set the threshold per category: seasonal vs non-seasonal have different horizons.

What do I do with dead stock?+

Options: liquidate at a discount, bundle with fast movers, return to supplier (if possible), donate (tax benefit) or, last resort, write off. The key is to act fast.

How do I prevent dead stock build-up?+

Demand-based purchasing (not intuition), per-SKU rotation monitoring, reasonably negotiated MOQs, and early flagging of products with declining rotation.

Where CRMconnect fits

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