A business makes money only by moving or selling the boxes not by storing the boxes. If we are storing the boxes, it’s known as dead stock. When it comes to deadstock, it eats up and disturbs your cash flow in the business. The statement is fair enough because the cost to manage the dead inventory is way more than buying fresh inventory. The accumulation of the stock that just doesn’t sell is the biggest loss to the company, not that it’s an irreversible one at that. It can be converted into profits or can, at the most, sell the unused inventory without any profit.

There are reasons that culminate to increase the dead inventory after the production of a new product line. For example- Wrong purchasing decisions, lack in inventory management, defective products or a lack in the marketing process of selling the medical supplies for doctors. Now that you know what dead inventory is and what the reasons for the accumulation of deadstock are, let’s avoid it from the beginning itself:

1) Deadstock can be transferred to the other company’s location: The moving of the products can also depend on the location of the product. Look for a different store where you can move your dead inventory where the demand is comparatively more. The process is called “Inventory Balancing”.

2) Forecast the demand with efficient forecasting solutions: Buying a large amount of the best medical deadstock online without a forecast would increase the number of medical supplies in your warehouse. There are many tools that can help you with forecasting the demand and cut out on a pile of unsold stocks. The purchase orders can also be analysed to study the pattern of the amount that is purchased and the interval in which they are purchased. So, you can plan the next purchase accordingly.

3) Start to offer free shipping on online medical supplies: Purchasing online holds back many people due to the extra shipping charges. Removing the shipping charges would be a good decision to attract the buyers to buy the products as it reduces around 20% - 30% of the total cost. Besides, you can also list the non-moving inventory at marketplaces for medical equipment and at price comparison websites too. You need to know the flow of your inventory being slow or non-moving, then you may take up different ways to start getting rid of it so that you don’t end up with a bundle of many. As they say, precaution is better than cure.

4) Design a watertright supplier’s agreement: When you order the medical supplies from the wholesale medical supplier, try to get in a strict agreement backed up by your signatures and verbal words. The agreement should be that if the products don’t sell beyond a point, they can either be returned at a little or no cost to the supplier. Holding the non-selling inventory might be the biggest cost for you, so consider to have a word with your supplier about this so that you can replace the dead inventory with the fast-moving inventory.

These 4 tips would surely help you get rid of your dead inventory and if not that, then it would prepare you for the upcoming situation that may occur due to the flow of the inventory.