Deadstock
Inventory that is unsellable because it has expired, passed its saleable shelf-life threshold, or is otherwise frozen in the warehouse.
Full definition
Deadstock is inventory the business cannot sell. It is expired product, damaged packaging, stock that has crossed the minimum residual shelf life required by retailers, or SKUs that have been discontinued but still sit in the warehouse. Deadstock is pure loss, it consumes working capital, warehouse space, and eventually disposal cost.
The root causes of deadstock in Indian distribution are over-optimistic forecasting, poor FEFO discipline, broken cold chain, and scheme-driven channel stuffing. A deadstock rate above 2% of gross sales in FMCG signals a broken operation; for perishables the threshold is tighter.
Good sales analytics surface aging inventory weeks before it turns into deadstock, giving planners the window to launch clearance schemes, liquidate via secondary trade, or halt fresh production.
Real-world example
A bakery distributor found 400 packets of cookies with 2 days residual shelf life, below the retailer's 30% threshold, which became deadstock and had to be written off.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
Keep learning
Related terms
See Deadstock in action
Start a free trial and watch how SpireStock turns deadstock from a concept into a measurable, auditable workflow.