DEMAND & STOCK PLANNING
Dead stock
Dead stock is inventory with little realistic prospect of sale or use under the current business plan.
DEAD STOCK (OR DEAD INVENTORY) IN PRACTICE
- Identify inactive stock
- Review usable demand
- Approve a disposition
A WORKED EXAMPLE
500 units. No current route to sale.
A brand holds 500 units of discontinued packaging that no longer fits its product. The balance may be physically accurate while the stock has no planned use. Before disposal, check whether relabeling, another channel or a supplier return is feasible and authorized. Do not assume every old item is unsaleable.
WHAT THIS MEANS FOR YOUR QUOTE
Make the requirement explicit
Use the same scope and units when comparing providers. Put the agreed responsibility, included work and exception process into the service description.
Put this term to work. Use the 3PL selection guide to turn these operating requirements into provider checks, and the 3PL RFP guide to document evidence, responsibilities and exceptions.
A LITTLE MORE CONTEXT
Questions about Dead Stock (or Dead Inventory)
Is dead stock always damaged?
No. Sound inventory can become commercially obsolete or have no remaining demand.
Can a warehouse dispose of it automatically?
Disposition should follow the owner’s authorization and applicable procedures, not an informal age assumption.
Source & example notes
Microsoft Learn: demand planning. Further reading on the related controls and terminology. Product documentation describes a particular implementation; it does not establish a universal procedure or service commitment.
Definitions and worked examples are prepared by 3PL Hub. Numbers are illustrative, not provider rates, operating targets or guarantees.
Last updated: · 3PL Hub
