Dead Stock: Champion of Hidden Costs


A small current stock with a high rotation speed is the dream of every stock keeping company. But, product life cycles become increasingly shorter and every start or change of a product/series/supplier holds a new risk of creating non-saleable stock. Therefore, good assortment management will require more attention than before. "You better have it in stock!”

There is little credit to gain in the clearance of obsolete stock. It often ruins the sales margins, and everyone is occupied with their main tasks. It is the stepchild of every department and will thus receive insufficient attention. There are often several people responsible for the creation of obsolete stock, so everyone’s finger points at the other. "Why should I clean up the mess that others created?" However, the longer one complains, the longer on the shelf, the harder to sell.

Buynamics has developed two solutions to:

  • Reduce the chance of your stock becoming obsolete.
  • Force the organisation, with help of IT, to clear out obsolescence stock within a fixed time frame.
The combination of both methods leads to surprising improvements. Suddenly the problem of dead stock is tangible and manageable again. Now you can keep people accountable for their “dead stock performance”.

The benefits to the organization are obvious:

  • Lower spend on interest
  • Less demand on capital
  • Less warehouse space
  • Reduced inventory costs
  • Lower depreciation
  • Higher average sales price
  • More time for important things
Is your obsolete stock below 3% of your total stock? How much time and money would your organisation save if your obsolete stock is 6 months shorter on the shelf, would reduce with 30% and would generate a 10% higher average sales price?

Interested? Please contact us!