How to use Dead stock and no movement items

Dead stock means items that still have stock on hand but had no recorded movement during the selected reporting period. This can mean the item is slow-moving, seasonal, overpriced, hidden, or no longer wanted by customers.

What dead stock means

• The item still has stock available.
• No sales, deductions, additions, or other movement were recorded during the selected period.
• It may not be a problem if the item is seasonal or slow-moving by nature.
• It may be a problem if money is tied up in stock that does not sell.

Why dead stock matters

• It ties up cash that could be used for faster-moving stock.
• It can expire, become damaged, or go out of fashion.
• It takes shelf space.
• It can hide buying mistakes.

What to do with dead stock

• Check whether the item is visible to customers.
• Check whether the price is too high.
• Consider a discount or promotion.
• Avoid reordering until the old stock moves.
• Mark the item inactive if you no longer sell it.
• Review supplier buying decisions.

Example

• A cosmetics shop may have an old skincare product that has not moved for 30 days. The owner could discount it, move it to a more visible shelf, or stop buying it.