Inventory Guides

Dead stock is silently eating 11% of your margin. Here's the fix.

Aging reports, ABC classification, and how to write a 30-day liquidation SOP that actually works.

Rohit SharmaJun 22, 20269 min

Across 1,200 retailers on SaathiX ERP, dead stock (SKUs unmoved for 90+ days) averages 11% of inventory value. In a ₹40 lakh stock base, that's ₹4.4 lakh locked up.

Step 1: Age every SKU

Run a 0-30 / 31-60 / 61-90 / 90+ report weekly. The 90+ bucket is your enemy.

Step 2: Classify (ABC + FSN)

A = top 20% of revenue. B = next 30%. C = bottom 50%. Cross with Fast / Slow / Non-moving. Anything in C-N goes to liquidation.

Step 3: 30-day liquidation SOP

Week 1: 10% off, prominent in POS. Week 2: 20% off + WhatsApp broadcast. Week 3: bundle with A-Fast item. Week 4: return to supplier if possible, else write off.

Step 4: Prevent recurrence

Set reorder + max levels on every SKU. SaathiX ERP will refuse to raise a PO if it would breach max.

RS
Rohit Sharma
Retail Ops Consultant

Built inventory SOPs for 400+ Indian retailers.

FAQ

Frequently asked questions

How often should I run an aging report?

Weekly for A-items, monthly for B, quarterly for C.

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