Overview:

Slow-moving stock or inventory is a problem many businesses deal with from time to time. Keeping a well maintained stock file is a critical key in cost management and risk mitigation. Placing items on hold form not being purchased or returning stock to a supplier if trends or seasons change can free up cash flow, shelfing space and make room for new or alternative products. 

What is the impact of slow-moving stock?

1.) It can tie up capital. 

Buying stock can be expensive. If stock is sitting on the shelves and in storage for long periods of time is capital that could have been more effectively spent elsewhere. 

2.) Cost more to carry. 

Storing extra stock is a expense for some businesses. If stock moves slow then the order level and quantity carried should be evaluated as this stock could be taking up space that could be used for other faster moving stock.

3.) Lose value. 

The longer an item sits unused and unsold, the greater the chance that its value will decline. A new laptop coming out or newer technology can turn into a device that will be difficult to sell. Perishable stock (such as food) loses all its value when it expires. Trends and seasons kan impact the value and should impact the stock levels a business carries.

4.) Lost or stolen. 

Disasters like floods and fires can wipe out stock  and theft is a daily concern. The more value a business has sitting in inventory, the greater the potential loss from such an adverse advent. Theft, of course, is a bigger risk for businesses selling something valuable such as; jewelers have a greater risk than bakeries. 

5.) Risk becoming obsolete. 

If a company sits on inventory too long, it could become obsolete and its value could decline to zero. For example: A never-opened 20 year old computer is technically more usable than a sour milk, but the two have functionality and the same value to the retailer. 

Therefore a well maintained stock master file is critical to good stock management.

IQ POS, IQ Business and IQ Enterprise provides useful tools to assist in finding items that are redundant, slow moving or unused.

Steps below:

In Stock Maintenance or Stock Enquiries modules you can add to your visible fields by right clicking on the grid and selections customize or by selecting the "Select Visible Fields" button in the bottom left.

In the Select Visible Fields selection window you can add some items that we will highlight in this article:

Date_LP is short for Date Last Purchased - shows the date when last a stock item was purchased.

Date_LS is short for Date Last Sold - shows the date when last a stock item was sold.

Date_LT is short for Date Last Transferred - shows the date when last a stock item was transferred to a other branch.

Date_LM is short for Date Last Moved - Shows when last a stock item was moved this includes all of the above items.

These fields can be used in a filter to find items that have not moved in a specified period.

In the below example of a basic filter to find items that have stock but has not moved in the past three (3) months where the current date is 10 October 2024:

Below is a example of an advanced filter to locate items that have stock but has not moved in the past sixty (60) days that can be saved as a "available Filter" and reused based on the current date when the filter is applied:

The same principle can be applied for the rest of these fields to find items that has not been purchased recently, or has not had recent sales.

Alternatively, you are welcome to reach out to us if you need assistance in managing your slow moving stock. 

We have a host of trialed and tested automated reports and exports that we can implement to manage your slow moving or stock in general. 

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