Every warehouse has products that sell slower than expected. The cost isn't only the stock value. It's the space, the handling, and the cash that could be funding products that do sell.
Define 'slow' for your business
A practical definition is days since last sale. For fast-moving consumer goods, 30 days without a sale is a warning. For industrial parts, 90 or 180 days may be normal. Pick thresholds by category.
Look at three numbers together
- Days since last sale
- Stock on hand in days of average demand
- Value tied up at cost
High value, many days of cover and no recent sales is where to act first.
Options, from least to most costly
- Stop reordering until stock comes down
- Bundle with fast movers or offer to key accounts
- Return to supplier where agreements allow
- Discount to clear and recover cash
Make it a weekly habit
A short weekly list of new slow movers is far easier to act on than a long list discovered at year-end stock count.