Obsolete Inventory Adds Up: How the Right Tech Stack Can Keep It in Check

Inventory is one of the biggest investments a business makes, yet nearly 25% of all inventory becomes obsolete before it’s ever sold. That’s more than just a number—it’s a silent profit killer. Excess stock ties up capital inflates storage costs, and ultimately leads to painful write-offs. The longer products sit unsold, the more they lose value, creating a ripple effect of inefficiencies across the supply chain.

Many businesses try to solve this problem with better demand forecasting, but traditional methods often fall short. Relying solely on historical sales data, intuition, or manual tracking can leave companies vulnerable to shifts in consumer behavior, supply chain disruptions, or economic downturns. That’s why businesses need the right tech stack—not just a single tool, but an integrated system designed to keep inventory lean and profitable.

What Does the Right Tech Stack Look Like?

Avoiding obsolete inventory requires a combination of tools working together to optimize stock levels, reduce waste, and improve decision-making. Here’s what should be in your tech stack:

AI-Powered Demand Forecasting – AI can analyze patterns in sales data, market trends, and external factors to predict demand with high accuracy, helping prevent over-purchasing.

Inventory Management Systems (IMS) – A centralized IMS provides real-time visibility into stock levels, movement, and aging inventory, ensuring businesses act before products become obsolete.

Supplier Relationship Management (SRM) Software – Strong supplier collaboration helps businesses adjust orders dynamically based on demand changes, avoiding surplus stock.

Enterprise Resource Planning (ERP) Systems – ERPs integrate inventory with sales, procurement, and finance to give a full picture of operational health and inventory efficiency.

Automated Replenishment Tools – Smart replenishment solutions can reorder stock based on real-time demand rather than fixed schedules, preventing unnecessary overstock.

Tech is a Tool, Not a Magic Fix

While technology is a game-changer, it’s only as good as the strategy behind it. Businesses need to choose tools that integrate seamlessly, provide actionable insights, and align with their unique inventory challenges. A one-size-fits-all approach doesn’t work—what’s effective for a retailer with seasonal demand won’t be the best solution for a manufacturer with long lead times.

The goal isn’t just to reduce write-offs; it’s to create a proactive, data-driven inventory strategy that ensures the right products are available at the right time—without unnecessary excess. In today’s competitive landscape, the right tech stack isn’t a luxury—it’s a necessity.

Is Your Tech Stack Helping or Hurting Your Inventory Strategy?

If obsolete inventory is eating away at profits, it’s time to rethink your approach. Investing in the right mix of technology—not just AI—can mean the difference between waste and efficiency, loss and profit. The key isn’t just having technology; it’s having the right technology that actually works for your business.

Building the right tech stack begins with a tech stack evaluation with ABX. visit ABX.group to learn more