Dead Stock is the inventory that has become obsolete or unsellable and cannot generate revenue.

KPI Definition

Dead stock, as a critical metric in the realm of supply chain Key Performance Indicators (KPIs), refers to inventory items that have become obsolete or redundant within the supply chain network, typically due to factors such as low demand, seasonality, product discontinuation, or expiration. This metric quantifies the monetary value or quantity of stagnant inventory that ties up valuable warehouse space, capital, and resources without generating revenue or contributing to operational objectives. Dead stock represents a significant challenge for supply chain management, as it can lead to increased carrying costs, diminished profitability, and operational inefficiencies

Business Value

Enhanced Operational Efficiency: Dead stock can disrupt supply chain operations by occupying valuable storage space, increasing handling costs, and leading to warehouse congestion. By reducing dead stock, organizations can improve operational efficiency, minimize warehouse congestion, and enhance overall supply chain performance