Introduction
December 31 comes quickly, and messy stock records make a stressful year-end. A clean year-end inventory count gives you accurate numbers for your books, your tax work and your plans for next year. If your stock sits with a 3PL, a little preparation makes the process much easier.
In this guide, you will learn how to build a prep plan, clean up slow-moving products, and run a smooth count day.
Year-End Inventory Count: Build Your Prep Plan
Start early. A good plan avoids last-minute surprises.
Set a Timeline and Cutoff
Agree on count dates with your 3PL in early December. Set a cutoff time after which no inventory moves in or out, or record every movement carefully. Holiday returns and late shipments can easily throw counts off.
Talk to Your 3PL Early
Ask what reports they provide and how they handle counts. Share your accounting needs and any required format. Good communication now saves hours later.
Check Your System Records
A warehouse management system, or WMS, is software that tracks where each item is stored and how many units you have. Compare your own records with the WMS. Fix any mismatches before count day, not during it.
Year-End Inventory Count: Clean Up Dead Stock First
Counting products that never sell wastes time and hides real problems.
What Is Dead Stock?
Dead stock is inventory that has not sold for a long time and is unlikely to sell at full price. Common causes include over-ordering, changing trends and poor forecasting.
Make a Dead Stock List
Good dead stock management starts with a simple list. Pull a report of products with no sales over a set period that makes sense for your business. Note the quantity, cost and storage location for each item.
Separate It From Active Stock
Ask your 3PL to group or label slow items. This makes counting faster and keeps your active stock clear. It also helps you decide what to do next.
Count Day Tips and How to Get Rid of Dead Stock
A calm count day depends on the steps you take before it.
Run a Cycle Count Before December 31
A cycle count is a quick count of a small group of products. Do a few in the weeks before year-end to catch errors early. Pay extra attention to your best sellers and high-value items.
Document Every Variance
A variance is the gap between the system count and the physical count. Record each one and find the cause, such as a mis-pick, damaged item or receiving error. Fix the cause so it does not repeat. Learn more about common inventory mistakes to watch for.
How to Get Rid of Dead Stock
Knowing how to get rid of dead stock helps you free up cash and space. Try these ideas:
- Discount or run a clearance sale
- Bundle slow items with best sellers
- Return items to your supplier if terms allow
- Donate goods you cannot sell
- Recycle or dispose of items that are no longer usable
Check with your accountant on how to record any write-offs.
Why Choose Six Side Logistics
Six Side Logistics offers storage management, order fulfillment, repacking and kitting, and cross docking. If you want inventory storage and fulfillment handled in one place, the team can explain how stock is received, stored and tracked. Learn more about their 3PL storage and fulfillment services on the website.
FAQs
When should I start preparing for my year-end count?
Start at least a few weeks before December 31. Early prep gives you time to fix record errors, run cycle counts and talk to your 3PL about timing. Waiting until the last week often means rushed counts and unexplained gaps in your numbers.
Does my 3PL count my inventory for me?
It depends on your agreement. Many 3PLs can run counts and share reports, while some clients also want to observe or verify. Ask your provider how counts are handled, what reports you will get and whether any fees apply.
How can I plan for dead stock reduction next year?
Better forecasting is the best start. Review sales trends, set reorder points and avoid ordering large quantities of slow movers. Regular reviews through the year help with dead stock reduction, because you spot slow items before they build up. See our guide on FIFO vs LIFO vs FEFO for stock rotation basics.
Conclusion
A clean stocktake comes from planning ahead. Set your dates, check your records, clean up dead stock and document every difference you find. With these steps, your year-end inventory count will be faster, more accurate and far less stressful.
Want help getting your stock ready? Contact Six Side Logistics to start your stocktake prep today.