At a glance
Anomaly alert that fires when dead-stock value (zero-velocity inventory >90 days old) exceeds 15% of total inventory value. The 15% threshold is the empirical “we have an inventory-management problem” line for distribution and apparel businesses. Below 15%, dead stock is normal portfolio churn; above 15%, it’s a structural pricing / merchandising issue worth executive attention.
| Trigger threshold | dead_stock_value / total_inventory_value > 0.15. Dead-stock definition: SKU with zero sales in 90D AND on-hand > 0. |
| Signal interpretation | Above 15%: (a) buying patterns are out of sync with demand (procurement is over-ordering on slow movers); (b) merchandising / promotional cadence is underweight (slow movers aren’t being cleared); (c) a recent product launch flopped and inventory hasn’t been written down yet. Cross-reference Inventory Aging to see which age buckets dominate. |
| Recommended action | (1) Open Inventory Aging. (2) Open Top SKUs by Inventory Value filtered to dead-stock; top 20 SKUs typically explain 60 to 75% of dead stock. (3) Per-SKU decision: clearance markdown, bundle-with-fast-mover, return-to-supplier, or write-off. (4) Cross-reference Dead Stock with Active Ad Spend; pause ads on dead-stock SKUs. |
| Time window | RT |
| Roles | owner, finance, merchandising |
Calculation
Calculated automatically from your NetSuite data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.Worked example
A UK omnichannel apparel brand on NetSuite OneWorld. Alert fired 04 May 26. Alert payload:| Metric | Value |
|---|---|
| Total inventory value | £18,420,000 |
| Dead-stock value (zero-velocity 90D+) | £3,160,000 |
| Dead-stock as % of total | 17.2% |
| Threshold | 15% |
| Age bucket | Value | SKU count |
|---|---|---|
| 91 to 180d | £1,420,000 | 184 |
| 181 to 365d | £980,000 | 142 |
| 366 to 730d | £620,000 | 84 |
| 731+ days | £140,000 | 28 |
| Total | £3,160,000 | 438 |
- The 91 to 180d bucket is £1,420,000. Mostly seasonal SS25 (spring/summer 2025) overstock that didn’t sell through. Action: 30% markdown clearance, ride out the next 60 days; estimated 60 to 75% sell-through at clearance.
- The 181 to 365d bucket is £980,000. Cross-season overstock; harder to clear at full markdown. Action: 50% markdown + bundle-with-fast-mover promotions.
- The 731+ bucket is £140,000. True dead, will not move. Action: write off or sell to off-price channel (TJX, B&M, Wholesale).
- Top 20 SKUs by dead-stock value account for £1,940,000 (61% of dead stock). Focused merchandising review on these 20.
- Cross-reference Dead Stock with Active Ad Spend: 14 of the 438 SKUs are still receiving ad spend; pause immediately for £4,840/month savings.
- Recovery timeline: 90-day clearance program targets reducing dead-stock to <12% of total. Estimated cash recovery £2,100,000 (at clearance pricing) + £1,060,000 write-off + freed-warehouse-space.
Sibling cards merchants should reference together
| Card | Why pair it with Dead Stock Threshold Breach |
|---|---|
| Dead Stock Value | The headline dollar figure. |
| Inventory Aging | Age distribution, drives clearance pricing. |
| Total Inventory Value | The denominator. |
| Inventory Turnover Ratio | Slow turnover correlates with dead-stock buildup. |
| Dead Stock with Active Ad Spend | Cross-channel: which dead stock is also wasting ad spend. |
| Inventory Carrying Cost | The cost of holding the dead stock. |
Reconciling against the vendor’s own dashboard
Where to look in NetSuite’s own dashboard:
Reports > Inventory > Inventory Aging by Item for the per-SKU view.
Reports > Inventory > Inventory Stock Status with custom filter on Last Sale Date > 90 days ago.
Threshold tuning: 15% default suits apparel and durable-goods distribution. Fast-moving consumer goods (FMCG) tighter at 8 to 10%. Industrial / spare-parts businesses run 20 to 30% as structural baseline (slow-movers are the business model).