How do I learn which products an industrial distributor stocks but never sells?

Start with two reports: what is on the shelves and what has actually sold. Line them up by product code. Items with stock and no sales across a long stretch are your first list. Ask the seller to explain each group, because some may be legitimate insurance items for a key customer.

Then walk the warehouse. Look for dusty cartons, discontinued lines, older packaging and parts for equipment customers no longer run. Staff on the floor usually know which items nobody has touched, so ask them gently. Ask how the business decides what to stock. Is it driven by customer requests, a supplier’s minimum, or an old habit? Find out whether any stock came from a supplier that has changed or closed, and whether returns are possible. Be wary of explanations that sound too tidy. Some slow items are kept on purpose for a loyal customer or a seasonal job, so ask what the seller can show for each one, and let the evidence settle the argument.

Finally, ask how slow items are carried in the accounts and whether anything has been written down. Your accountant can say what the difference means for the numbers, and you can agree a method for handling it in the purchase talks.

Key takeaways

• Match the stock list against sales history to find items that do not move.
• Walk the shelves and ask floor staff which products nobody reorders.
• Ask how slow stock is carried in the books and whether it was written down.