| Target Entities | Inventory Optimization, Pricing Optimization, Dead Stock, Sell-Through, Demand Forecasting, Distribution Analytics |
|---|---|
| Core Value | Catch slow movers earlier, recover margin before write-off, double-digit dead-stock reduction, payback under a quarter |
| Tech Stack | ERP integration, Forecasting models, Pricing engine, BI Dashboard |
Distribution
How a distributor cut dead stock by catching slow movers 60 to 90 days earlier
A distribution company priced too late, so slow-moving inventory sat for months tying up cash, and by the time products were flagged the margin was already gone. We built a demand forecasting and pricing layer on the existing ERP that flags slowing products 60 to 90 days earlier and recommends price moves while margin is still recoverable.
reduction in dead stock
sell-through rate improvement
payback on repriced and cleared items
Challenge
Slow stock was flagged at 90 to 120 days, too late to do anything but discount or write it off.
What we built
A forecasting and pricing layer on the ERP that flags slowing products early.
Result
Double-digit dead-stock reduction with margin preserved, payback under a quarter.
The challenge
Mid-market distributors typically carry 10 to 18% of inventory as slow-moving or dead stock; for a $50 to $80M company that is $1M to $2.5M in capital sitting on shelves. Products were usually flagged at 90 to 120 days, when the only option left was deep discounting or a write-off. Buyers and pricing managers worked from separate spreadsheets and met once a month, so seasonal patterns repeated the same mistakes.
What we built
- Built a demand forecasting and pricing layer on the existing ERP that flags slowing products 60 to 90 days earlier than manual tracking.
- Recommended price moves while margin was still recoverable, with goals (margin, sell-through, cash recovery) configurable by category, no code changes.
- Connected demand signals to pricing in one place, so buying and pricing stopped working in silos.
How the data flows
Source systems
Reporting
The outcome
Dead stock dropped by double digits and sell-through improved by 3 to 5 points with no margin loss, and the work paid back in under a quarter. Write-offs stopped being treated as a normal cost of doing business.
Systems & technologies
Before vs after
Get in touch
How much capital is stuck in slow-moving stock?
We can run a diagnostic on your inventory and pricing data in 2 to 3 weeks and show where margin is leaking, before you commit to anything.
Email us directly
sales@3alica.com