Dead stock rarely announces itself. It accumulates line by line, defended by the argument that it might sell eventually, until it quietly represents a large share of your working capital.
Request Free Diagnostic →The first problem is internal: too much of the wrong inventory and not enough of the right. Coverage is calculated on averages, so fast movers stock out while slow movers accumulate. Nobody owns the decision to write down or liquidate, because writing down is visible and holding is not.
The second problem is external: you need to buy from Brazil, or supply a Brazilian plant, and you cannot tell which suppliers are credible. Qualification from abroad, based on documents and a website, is close to guesswork. Interstate tax treatment also means the cheapest quoted price is frequently not the cheapest landed cost.
Both are solvable, and they need different work. The first is analysis and commercial execution. The second is on-the-ground verification — someone physically visiting the supplier.
Segmenting stagnant inventory by realistic recovery route — channel liquidation, repricing, bundling, return negotiation or write-off — then executing rather than filing a recommendation.
Differentiated stock policy by value and demand variability, replacing the single blanket coverage rule that creates stockouts and excess simultaneously.
We visit the supplier: capacity, process control, quality system, financial and delivery track record. A report based on what was observed, not on what was claimed.
Unit price is one component. Interstate tax treatment, freight, lead time and inventory carrying cost frequently change which supplier is genuinely cheapest.
Where inventory problems are caused by the sales channel, we restructure it: representative selection criteria, defined sales process, and commission rules aligned to margin instead of volume.
A forecasting cadence with named owners and measured accuracy, so planning stops being an argument between sales and production.
We segment the inventory, quantify what is genuinely stagnant, and identify the recovery routes available. For sourcing work, we define qualification criteria against your technical requirements. No cost.
Not everything is worth recovering. We sequence by how much capital each action releases against the effort it takes, so cash comes back early.
For inventory recovery this means working with the commercial team on pricing and channel. For sourcing it means visiting suppliers. Deliverables that stop at the report change nothing.
Recovering dead stock without changing the policy that produced it guarantees it returns. Coverage rules, commission structure and purchasing authority all get revisited.
Stock turns, coverage by segment, capital released — measured against the baseline established in the diagnostic.
Motorcycle parts distribution — inventory and channel restructuring. The business was carrying roughly R$ 2.5 million in stagnant inventory that had stopped moving through its existing channel. We segmented the stock by recovery route and worked the commercial side in parallel — and the full amount was sold through within 45 days.
The underlying cause was structural rather than commercial effort, so the channel itself was rebuilt: selection criteria and onboarding for commercial representatives, a documented sales process, and a commission model tied to margin rather than revenue. New brands were then introduced into the portfolio at a 22% net margin.
Client identity withheld under confidentiality. Figures are from this specific engagement and are not presented as typical or expected results.
Yes. We define the qualification criteria against your technical requirements, identify candidates, and visit them. You receive an assessment based on observed capacity and process control rather than on marketing material.
With segmentation. Different stagnant stock needs different treatment — some is best liquidated through an alternative channel, some repriced, some returned, some written off. Treating it as one undifferentiated pile is why it usually stays put.
Both. Inventory and channel problems are structurally similar in each, and some of our most measurable work has been on the distribution side.
Usually the resistance is rational given how they are compensated. If commission is paid on revenue, discounting is a personal loss for the seller. The commission structure normally has to be addressed before the inventory will move.
Yes, for sourcing and supplier qualification. For questions about establishing a legal entity you will need a Brazilian corporate lawyer and accountant — that is outside what we do.
Tell us about your operation in Brazil. We reply within one business day — no cost, no commitment.