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
Related terms
Inventory turnover
How many times stock is fully sold and replenished in a period - a measure of capital efficiency.
LogisticsSafety stock
Extra buffer inventory held to prevent stockouts caused by demand or supply variability.
FinanceCash flow
The actual movement of money in and out of a company over a period - a measure of liquidity, not profit.
OperationsStocktaking (physical inventory)
The process of physically verifying inventory and reconciling it with book records to establish the real asset position.