What is dead stock and how to track and control it

A CFO of a wholesaler recently described dead stock as piles of cash in the corner of a warehouse that she can’t access. And, in many ways, she’s not wrong. Dead stock is unsold products in storage or returned from retailers. It reduces the cash flow you need to buy revenue-generating stock and takes up valuable warehouse space that profitable products could use. Dead stock inventory also increases carrying costs, tying up resources in excess inventory that no longer matches customer demand.