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Dead Stock and the Ways to Avoid Its Negative Effects

Dead stock may seem like a minor problem at first glance, but the truth is that it can significantly impact your venture. You do not want to be on the receiving end of it; otherwise, your company may suffer a few financial losses.

Sure, having a few unsellable items in your warehouse may seem harmless, but over time, it may affect the process of your business; thus, you must take note of the following tips and suggestions to avoid its effects.

1. Never Order Too Many of the Same Items

For instance, let’s assume that you have to purchase the same kind of products at the same time to save on delivery costs. Apart from saving more money, this also makes sense from a logistical perspective; however, it can also be detrimental to your business. As a matter of fact, having too many of the same products can cause issues in terms of storage and management.

2. Practice Lean Requirements Planning

If you want to prevent stockpiling and overproduction, then you should practice lean requirements planning. This means that you should focus on only the essentials and essentials only. You must prioritise your products based on their inventory demands, which allows you to reduce wastage.

3. Determine the Stale Stocks in Your Inventory

You can establish the level of uncertainty based on the shelf life of your products. This is the most straightforward way to determine the level of danger that old stock will pose; this is how you will determine how urgent it is to reduce the amount of dead stock in your inventory.

4. Order on a Timing Basis

You should also consider the timing of your orders. This will help you determine the right time to order your products. For instance, you could order at the start of the month or at the beginning of the week.

5. Consider a Multifunctional Warehouse

It would be best if you also considered renting a warehouse that is big enough to store all of your inventory. This will allow you to store your inventory in a big area, which gives you more room to freely manipulate the products. This can help you easily organise the items.

6. Do a Sales Forecasting‍ from Time to Time

The sales forecasting will help you determine which products will be in high demand, and you can stock up on those items. This will allow you to make a prediction about the number of products that you need to order and the number of products that you will have to discard.

7. Establish a Return Policy with the Suppliers

Suppliers also have to manage their inventory, too. As a result, you should work with your suppliers to establish a good return policy that will help you create a win-win situation for both of your businesses.

8. Reward Employees for Keeping Costs

You can offer your employees for keeping costs in check. This will motivate them to contribute to the reduction of the amount of dead stock in your inventory.


There are a lot of things that you can do to avoid dead stock. When you stash your products over a long period of time, the possibility of them going bad increases. And since you are just a one-stop shop, customers will never come back to your business once they have ordered items from you and they no longer work.

On the other hand, you can also offer coupons and discounts as a way to keep customers buying your products, as well as introduce new products to keep them coming back to your business.

Keep everything fresh and new, and you will never have to worry about dead stocks in the foreseeable future.

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