Slow-moving inventory is considering inventory as “nonproductive.” The goal is to account for inventory that has not been shipped over a particular period of time. Industry standard can be anywhere from 3 to 12 months.
Slow-Moving Inventory Calculation
Pallet positions that have more than 5 units that have not left our warehouse in 12 months or longer.
What is included: Customer owned packaging components and raw material
What is excluded: DCL purchased packaging components and RMAs are charged separately. International storage is also excluded from this calculation.
How is slow-moving inventory invoiced?
DCL Accounting exports slow-moving inventory from the WMS a couple business days prior to the month-end. Rules are put into place to properly exclude the above mentioned types of inventory.
FAQs
Can you help me plan for inventory disposition?
Yes, we have a list of resources available—this includes warehousing, refurbishment, and destruction partners.
Will I get a detailed list of slow-moving items with my invoice?
Yes, there will be a list of SKUs within the back-up tab of the invoice. If you ever want to look at the list ahead of the billing timeframe, work with your Account Manager to pull the data. We are working on making this more automated in the future.
When will I get charged for slow-moving inventory?
The last couple of business days of each month we will start to pull slow moving inventory data to include in the next month's invoice. For example, datawill be pulled the last few business days of July for the August fulfillment invoice.
This slow moving methodology will change during 2024. The first fulfillment invoice where the calculation will be actualized is August 2024. We will start to pull slow moving inventory data in the last couple of business days in July 2024.