How to Reduce Dead Inventory
2025-11-10 · 8 min read
Dead stock is the most expensive thing on your balance sheet. It costs you twice — once when you bought it, again every month it sits there blocking working capital you could deploy elsewhere.
Define "dead"
For most retail and distribution businesses, anything with zero movement in 180 days is dead. For fashion and electronics, the cutoff is 90 days. For pharma, it's any item within 60 days of expiry.
The clearance ladder
The prevention loop
The best way to reduce dead stock is to never buy it. Tighten your reorder logic, reduce minimum order quantities with vendors, and review every PO above ₹50,000 with the dead-stock report open.
How InventorySaaS helps
Auto-generated dead stock reports, ageing analysis at SKU level, bundle suggestions, and one-click writeoff workflows with GST treatment built in.
