Cash Sitting on Your Shelves: Fixing Inventory Before It Becomes a Write-Off
The share of smaller businesses stuck with more than 10% dead stock has doubled since 2024. Here is how to find it, clear it and stop buying more of it.
George Fassett, Jr. · October 8, 2026
The Loadstar's October 8 report on Netstock's 2026 Supply Chain Planning Benchmark found that 24% of small and mid-sized businesses now hold more than 10% of their inventory as dead stock, double the 12% in 2024. Another 24% struggle with both low fill rates and low stock turns: too much of the wrong inventory, not enough of the right.
Dead stock is cash you already spent that will not come back.
Find It
- Run an aging report. Anything that has not moved in 180 days needs a decision.
- Compare what you buy to what you sell. Reorder points set years ago rarely match today's demand.
- Check by location. Stock that sits in one place may sell in another.
Clear It
Bundle it, discount it, return it to the supplier, or liquidate it. The report found businesses using promotions (77%), liquidation (39%) and moving goods between locations (34%). A smaller recovery today usually beats a full write-off next year.
Stop Buying More of It
- Reset reorder points using recent sales, not habit.
- Plan by item, not by category. A few slow items can hide inside a healthy category.
- Put inventory in your system, not in spreadsheets. Business systems such as ERP only help if purchasing, sales and the warehouse all use the same numbers.
For garment and product decoration shops, the same rules apply to blank stock: buy against confirmed orders and a short list of proven sellers.
See operations consulting, or talk with George.
Frequently Asked Questions
- What is dead stock?
- Dead stock is inventory that cannot be sold. It ties up cash, warehouse space and staff time, and often ends as a write-off.
- How common is dead stock for small businesses in 2026?
- Netstock's 2026 Supply Chain Planning Benchmark, reported by The Loadstar, found 24% of small and mid-sized businesses hold more than 10% of inventory as dead stock, up from 12% in 2024.