Playbook

How to reduce Excess & Obsolete Inventory (2026 playbook)

Last updated July 2026

The short answer

To reduce excess and obsolete inventory, identify slow movers and dead stock across every location, redistribute what another branch needs, and monetize the rest at fair market value. Maintained ranks every SKU by risk and value and recommends the highest-recovery action — you approve it.

The problem. Slow movers and dead stock pile up across branches, quietly costing about a quarter of their value every year while nobody decides what to do with them.

The steps

  1. 1

    Surface slow-moving, excess, and obsolete SKUs across all branches in one view

  2. 2

    Redistribute stock to the branch that actually needs it before buying new

  3. 3

    Price and monetize true dead stock at fair market value

  4. 4

    Right-size reorder points so excess stops rebuilding

Why it pays off

~25% / year
Excess and obsolete inventory costs the typical distributor about 25% of its value every year in storage, shrinkage, and cost of capital.
Industrial Supply Magazine
20–30% / year
Inventory carrying cost typically runs 20–30% of inventory value per year (often 25–40% for wholesale distributors).
Institute for Supply Management (via NetSuite)
20–30%
AI-driven optimization can cut inventory 20–30% while holding service levels, and reduce forecasting error up to 50%.
Epicor / MDM

Frequently asked questions

How do you reduce excess and obsolete inventory?

To reduce excess and obsolete inventory, identify slow movers and dead stock across every location, redistribute what another branch needs, and monetize the rest at fair market value. Maintained ranks every SKU by risk and value and recommends the highest-recovery action — you approve it.

What is the fastest way to reduce excess and obsolete inventory?

Start with the step that releases the most value first: surface slow-moving, excess, and obsolete skus across all branches in one view. Clear the graveyard aisle and stop the write-offs.

See what your inventory is really costing you.

Tell us where the cash is trapped — excess stock, idle surplus, slow RFQs — and we'll show you the outcome Maintained can unlock.