Here’s some thoughts on Dead and excess inventory. What is Dead stock? Your stocked products that haven’t sold for a certain length of time (usually a year).
Turning excess inventory into cash is good. But before you put considerable effort into a dead stock liquidation program, be sure that you are currently “buying right” – that is, be sure you are ordering the right quantities, of the right items, at the right time.
To show you how “buying right” does more for your profitability than liquidating dead stock. For example, try ranking your items in order of profit potential. The ranking process identifies those products that provide the most opportunity for your company to earn a profit. We begin the process by sorting all stocked products in a warehouse in descending order, based on cost of goods sold (COGS) during the past 12 months.
Sure, liquidating dead stock is important. But it probably won’t contribute as much to your overall profitability as the process of ensuring that you are buying the right quantities of fast-moving products at the right time.
MYOB EXO Business and Momentum Software Solutions have many tools and reports to make this process easier.
How do I get this info from MYOB EXO Business?
Sales Analysis Designer -> Report Type = Date Range -> Main Group = PLU_Name -> Criteria = SKU_STATUS = S