What is Dead Stock?
Dead stock is inventory that has not moved in a defined period, typically 60-90 days. It ties up cash, occupies shelf space and risks obsolescence.
A real Kenyan example
A fashion boutique has KES 250k of dresses sitting for 120 days. That is dead stock, recover 40-60% via clearance, not 0%.
Why it matters
Dead stock silently kills SME cash flow. Every month of holding compounds the loss.
How Veira helps
Veira flags dead stock automatically per SKU and recommends clearance pricing.
FAQs
When to call it dead?
Fashion 60 days, electronics 90 days, general retail 90 days, food: shelf life.
Clearance or write-off?
Clearance first, recover 40-60% of value. Write-off only as a last resort.
Is dead stock tax-deductible?
Yes with proper documentation.
How to prevent it?
Reorder points based on real demand, ABC analysis, supplier return clauses.
Does Veira flag dead stock?
Yes, daily.