Dead inventory definition2/29/2024 ![]() You might order what seemed the right amount of inventory, only to see it go unsolved. Poor sales.Ī downturn in sales can also create dead stock. You may get left with far too much of one line, for instance, if someone reorders by mistake or in too high a volume. One of the principal causes of dead stock are errors in inventory management. Many different things can cause it nonetheless, however. On some occasions, deadstock can become sought after due to rarity.ĭead stock is something all brands strive to avoid. A model of games console that’s no longer made or distributed is an example. Deadstock refers to discontinued products or lines. This is an entirely different phenomenon. That’s not to mention the opportunity cost of not being able to use your warehouse space for other items.Īs well as ‘dead stock’, you may also encounter the term ‘deadstock’. You lose what you paid to buy or make it, what it costs to store it, and potentially also have to fork out to dispose of it. It’s those lines and items that clog up your warehouse and never pique your customers’ interest.įor any firm, dead stock can get really costly. More often, the term refers to stock that never is - and never will be - sold. Defining Dead Stockĭead stock is inventory that remains unsold for a prolonged period. Things can go wrong, however, and you may get left with dead stock when they do. That’s why proper inventory management is fundamental to your success. ![]() As a retail business, your inventory is one of your most essential resources.
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