01 From category to default decision
Part 1 sorted your stock into five categories. Each category has a default decision to help determine the next step.
| Category | Default decision | Why |
|---|---|---|
| Slow-moving | Review | Still needed, so confirm the quantity you actually consume and sell the rest |
| Excess quantity | Sell the excess | The working quantity stays; everything above foreseeable demand can go |
| Obsolete | Sell | No longer needed by the current operation, and losing value while it is held |
| Project surplus | Sell | The project is closed or cancelled, so there is no internal demand to protect |
| Needs review | Review | Confirm criticality with maintenance before anything is released |
The default decision gives each category a clear starting point. Use the criteria below to confirm whether that decision is right for your situation.
Decide before it becomes urgent
Clearing stock against a deadline weakens your negotiating position. Review and sell surplus while you still have options. The earlier you act, the more value you can recover.
02 The trade-off: keep or sell
Keeping stock costs money every year, while selling carries the risk that it may be needed again. The criteria below help confirm whether keeping or selling is the better decision.
Link to active equipment
Keep: compatible with equipment still in use
Sell: the equipment is replaced or no longer in use
Operational criticality
Keep: critical spare protecting a line or process
Sell: production continues without it
Future demand and required quantity
Keep: stock with documented future demand, in the quantity required
Sell: stock with no expected use, or quantities above foreseeable demand
Lead time and availability
Keep: long replacement lead time or limited market availability
Sell: readily available with short lead times
Product lifecycle status
Keep: current model or specification still in use
Sell: replaced or discontinued model no longer needed internally
Equivalent parts
Keep: no equivalent parts available
Sell: an approved alternative is available or already in use
Keeping stock “just in case” is costly over time.
Selling surplus stock can recover value now.
03 Build the internal business case
A surplus decision often requires input from multiple departments. Bring the relevant information together before asking for final approval.
