Dead Stock Suppliers Have Chalked Out Some Causes Of Dead Inventory?

Being a familiar term, dead inventory or dead stock is what’s left of all the inventory a company purchases for a successful return on its investment. Especially, when it’s a retailer store (or medical supplies for the doctors), there are huge possibilities for the inventory to dust while sitting on the shelves. Evidently, inventory makes or breaks the business (maybe it retail or wholesale). Choosing bad and slow-moving inventory, inefficient planning for selling the products or denying to consider inventory as the sole reason for resisting the revenue, etc. can be some of the prominent reasons for the piling up of dead inventory. 

Therefore, it’s understandable that the unsold inventory or stock is your dead inventory or dead stock. However, it cuts off the retailer’s profits and represents unrealised sales opportunities. The more these merchandise stay in the shops, the more they prove to be a loss for the business. Though they have a name ‘dead’ attached yet they are inventories in a good condition, with tags and original packaging without any damage. So, the dead stock heaps up: 

When Products are Defective

Defective products are the ones which have a manufacturing defect such as poor engineering or design. Say medical stores, they have medical dead stock which is defective maybe because of the wrong printing of the salts of the medicine or no-up-to-the-mark packaging. The defective inventory doesn’t trouble much because they have a possibility of getting replaced or fixed. You can file a Return Authorisation (RA) for returning or getting your merchandise fixed by the manufacturers itself. 

When Consumers Dislike the Products

It’s when your bought inventory doesn’t create an impact on the customer, it’s either non-appealing or too much above their budget. The reason behind can be the emergence of new products in the market that makes the older ones obsolete. The best way to cope up with the situation is to slash the prices down and make cash out of whatever inventory is on display. This should not be a time taking process as these dead products will take up the spaces of the fast-moving inventory. 

When There’s a Communication Gap

The communication lag between the customer and the store owner or the store staff disrupts the whole buying and selling chain of the retailers. This can lead the inventory to stay unsold or go dead. It might be possible that the store boy is new to this, or isn’t able to convince the customer to help buy the merchandise. To make it work, you can introduce the new items while they are purchased to the staff so that they are able to give an overview of the benefits to the incoming customers. 

Having said that, there will always be some products with the retailers that go into the category of dead stocks, unsold inventory or obsolete inventory because of the above stated little issues that can be resolved on the basis of your understanding of the business/ retail store. To beat the dead stock even if you aren’t able to reduce it, there are ways where you can supply your deadstock to the best marketplace of medical equipment, automobiles, healthcare products, etcetera.