Warehouse & Inventory · SOP

Inventory Dead Stock Identification And Write Off

Systematic process to identify non-moving, obsolete, and expired inventory items, approve their disposal, and remove them from active stock records.

Estimated Time

60 min

Difficulty

Intermediate

Regulation

CSA Z432

Version

1.0

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Purpose

To provide a clear, repeatable method for identifying dead stock (items with no movement for 12+ months, expired, damaged, or obsolete) and executing a formal write-off. This procedure frees valuable warehouse space, reduces carrying costs, and improves inventory accuracy.

Scope

This SOP applies to all inventory locations within the main warehouse and satellite storage areas. It covers raw materials, work-in-progress, and finished goods with zero issue or receipt activity for more than twelve consecutive months, as well as any items identified as expired, damaged beyond repair, or technologically obsolete.

Safety Precautions

PPEWear steel‑toed boots, safety glasses, and cut‑resistant gloves when physically handling pallets or shelved inventory.
HAZIf dead stock includes chemicals, batteries, or pressurized containers, consult the SDS before moving and follow established hazardous waste disposal protocols.
LOTOLock out any powered equipment (conveyors, pallet jacks) before accessing deep rack locations above head height.

Required Tools & Materials

Inventory management system (e.g., SupplyGrid) with dead stock reporting module
Handheld barcode scanner or mobile device with inventory app
PPE: safety glasses, cut‑resistant gloves, steel‑toed boots
Pallet jack or forklift (for palletised dead stock)
Write‑off authorization form (paper or digital)
Disposal / recycling containers or waste bin

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Procedure: Step-by-Step

1 Generate a dead stock report from your inventory system. Filter for items with zero movement in the last 12 months, expired date, or obsolescence flag.

2 Travel to each location listed, visually verify the item barcode and quantity using the handheld scanner. Mark any discrepancies.

3 Inspect each item for physical damage, corrosion, expiration, or technological obsolescence. Take photos if needed.

4 Flag the verified dead stock items in the inventory system with a "Write‑off Pending" status. Attach inspection notes and supervisor assignment.

5 Present the flagged list to the warehouse manager or authorized supervisor. Obtain signed approval on the write‑off authorization form.

6 Once approved, update the inventory records: zero out quantities, change status to "Disposed". Physically move items to the designated disposal area and arrange for recycling or compliant waste removal.

Inventory Dead Stock Identification And Write Off

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