Hello 👋

When managing inventory, there are certainly products that you bring in with affection but don't sell well. Such inventory can end up occupying storage space and can even block cash flow, becoming a headache. Today, I will introduce ways to smartly manage and reduce such **‘Dead Stock’**.

1. Identify Dead Stock Based on Data

These days, it’s basic to utilize sales data analysis instead of simply relying on ‘feel’ to assess inventory.

• Products with low turnover rate

• Products that have not been shipped for more than the last 3 months
  By classifying dead stock based on these criteria, you can see where the problems are immediately.

2. Utilize Pricing and Promotion Strategies

Rather than just discarding dead stock, it can open up new avenues.

• Bundle Discounts: Sell in sets with popular products

• Time Sales: Immediately discount products close to expiration

• Membership Benefits: Offer special discounts only to loyal customers

Recently, there has been an increase in cases where ‘special price liquidation events’ are conducted in conjunction with **real-time sales on social media (live commerce)**.

3. Expand Product Utilization

Do unsold products really have to be discarded? Depending on the industry, you can revive their value through reprocessing and utilization.

• F&B stores can use them as ingredients for new menu development

• Clothing stores can convert them into DIY/upcycling kits

• Miscellaneous shops can give them away as gifts or for promotions

4. Utilize Second-Hand/Resale Markets and Third-Party Distribution Networks

These days, focusing on inventory management through resell and B2B second-hand trading platforms is gaining attention.
In particular, IT devices, fashion, and daily necessities can be liquidated by passing them on to the second-hand market or wholesale platforms targeting businesses.

5. Strategies to Avoid Creating ‘Dead Stock’ in the First Place

The most important thing in the end is prevention.

• Small Orders & Quick Reordering System

• Trend Prediction + Pre-Order Sales

• Utilize inventory management solutions like Outgoing Five Minutes

By doing this, you can greatly reduce the possibility of generating dead stock.

Conclusion

Dead stock can occur in any store, but depending on the management methods, it can either become a burdensome load or create new opportunities. Reduce inventory burdens and improve store operating efficiency with the tips I've introduced today.

STOCK 5 MINS AGO is always here to help you manage inventory easily and smartly based on data.
We will continue to share essential inventory management tips for practical work. Thank you 🙏