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Analysis for people holding stock.

Knowing which stock is dead is a stocktake. Knowing why it was bought is the analysis.

  • Read6 min
  • Sections4

How much of my stock is dead, and what is it costing me?

Age stock on the order lines rather than on the stock file's own last-sold column, which is maintained by processes that are not sales and is stale in the flattering direction. Then rank by the cash that clearing each line would release rather than by units, and exclude anything that sold in the same month last year before calling it dead.

01

The stock file lies about ageing

A last_sold column is updated by stock counts, transfers and returns as well as by sales, so it drifts toward looking more active than the product is.

Rebuild ageing from the order lines and report how far the two disagree, because that gap is itself a data quality finding worth acting on.

In one worked example the sheet's own column disagreed for 312 SKUs and would have classified $47,000 of dead stock as active.

02

Stockouts leave no rows

Nothing is recorded on the days you had nothing to sell, so the absence has to be reconstructed from zero-stock windows in the movement history rather than inferred from an absence of sales — those look identical and mean opposite things.

Value them at the product's own rate of sale either side, then re-run at a deliberately conservative rate and report both. A single confident figure for something that did not happen is the most misleading number available.

03

Trace it back to the decision

Half the dead value in one worked example arrived on four purchase orders where the quantity was set by a supplier's minimum rather than by demand.

That is the actionable finding, and it is invisible in any report that stops at which SKUs are slow. Seasonal lines need excluding first, and the exclusion listed, so somebody can disagree with it.

04

What to upload

A stock file with quantities and costs, plus sales history at the order line. That pair is enough to age stock properly and rank it by the cash clearing it would release.

Movement history makes stockouts measurable and purchase orders make the cause traceable. Each additional file adds a section rather than being a prerequisite, so start with what you have.

See it on a real project

$128,000 of stock had not sold in nine months, and half was bought to reach a supplier discount.

Which stock is tying up cash?

Related

Try it on your own file.

Every check described here runs automatically, and your first findings arrive in full before you pay for any of it.

No account needed to start. You only pay when you like what you see.