Deadstock Management

As per the survey done over 56 dealerships in the passenger cars segment in India, about 46% of the dealership’s parts inventory is either termed as ‘Dead’ or ‘Slow Moving’ i.e. not retailed in last 90 days. Impact on a dealership’s cash flow is very high because of such dead stocks, especially when this business runs on very thin margins. Without proper inventory management, dead stock tends to accumulate over time and eat away at your profits. Practising effective inventory management techniques helps to reduce the quantum of dead stock and improves business viability.

Deliverables

• Identification and Classification of Dead Stock (Age-Wise): Determine the age of stock items to classify them as dead stock.
• Identification of Product Movement: Categorize items as slow-moving, medium-moving, or fast-moving.
• Listing of All Dead Stock Items: Create a list of all items identified as dead stock.
• Flagging Dead Stock in System: Mark dead stock items in the inventory system.
• Educate End Users: Inform spare part issuers and floor team members to prevent incorrect ordering.

Benefits

• Increased Profit Margins: Optimize stock levels to boost profitability.
• Improved Cash Flow: Free up cash tied in unsellable items.
• Increased Storage Space: Make room for high-demand inventory.
• Reduced Employee Costs: Lower labor costs by minimizing unnecessary handling.