Low-Turnover Products
Low-turnover products are items with a slow sales rate that are only sold or used in limited quantities over time. These products often present a challenge in inventory management, as they can tie up capital and take up unnecessary warehouse space if not handled strategically.
Rackbeat March 21, 2025
Why Is It Important to Monitor Low-Turnover Products?
To maintain efficient inventory management, it is crucial to distinguish between fast-moving (high-turnover) and slow-moving (low-turnover) products. Low-turnover products can lead to:
- Increased inventory costs – Unnecessary stock accumulation drives up operational expenses.
- Obsolescence and waste – Products with limited shelf life risk becoming unsellable.
- Tied-up capital – Money that could be invested in more profitable items is locked in low-turnover stock.
By analyzing inventory turnover rates, businesses can better plan their procurement and reduce the risk of overstocking low-turnover items.
Industries That Commonly Handle Low-Turnover Products
Low-turnover products exist across various industries where certain goods have low demand or are sold seasonally. Examples include:
🔹 Retail: Specialty products such as rarely used spare parts, exclusive designer items, or seasonal goods like winter coats in summer.
🔹 Manufacturing & Wholesale: Components or raw materials used only in specific productions or niche markets.
🔹 Food & Pharmaceutical Industry: Long-shelf-life products with low demand, such as specialized supplements or niche food items.
🔹 Construction Industry: Unique building materials used exclusively for certain projects or renovations.
For businesses in these industries, having a clear strategy for managing low-turnover products is essential to prevent excessive stock levels from affecting cash flow and warehouse efficiency.
How Can an Inventory Management System Handle Low-Turnover Products?
A modern Warehouse Management System (WMS) like Rackbeat can help identify low-turnover products and optimize stock levels. With features such as:
✅ Purchasing and sales reports showing which products have slow sales rates
✅ Purchasing management to avoid over-ordering low-turnover items
✅ Real-time inventory tracking to monitor products that have been in stock for too long
✅ Optimized order management, allowing you to adjust purchases based on actual demand
By effectively identifying and managing low-turnover products, businesses can reduce waste, free up capital, and streamline their supply chain.
Tips for Reducing Low-Turnover Products in Stock
🔹 Analyze sales data – Track which products have slow movement.
🔹 Adjust purchasing quantities – Order in smaller batches to avoid excess stock.
🔹 Use promotions & discounts – Offer price reductions or bundle deals to accelerate sales.
🔹 Optimize warehouse space – Prioritize fast-moving goods in the most accessible storage areas.
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