Slow-moving inventory consists of items that have low sales velocity and remain in storage longer than expected. It ties up capital, occupies valuable warehouse space, and increases the risk of obsolescence. Identifying and managing slow-moving inventory is critical for maintaining profitability. Causes may include poor forecasting, product cannibalization, or shifting customer preferences. Inventory optimization tools flag slow-moving SKUs and suggest strategies such as markdowns, bundling, or discontinuation. These insights help businesses clean up assortments and focus on high-performing products.
