Slow-moving inventory keeps growing

Material is bought in bulk for a good rate, or for an order that was later cancelled. It sits, and the shelf slowly fills with things that do not move.

The money is stuck there, and nobody looks at the oldest items until a count or a year end.

1. 01Bulk buying for price without checking use
2. 02Orders cancelled after material was bought
3. 03No regular review of ageing stock
4. 04Items are no longer used after a design change
5. 05Minimum order quantities are larger than the need
6. 06Nobody owns the decision to sell or scrap

1. 01Stock ageing is reviewed every month.
2. 02Slow items are flagged and given an owner.
3. 03Bulk buys are checked against likely use.
4. 04Dead stock is sold, returned or written off on a schedule.
5. 05Minimum order quantities are negotiated where they hurt.