Supply Chain & InventoryFree worksheetPDF, Excel, Word exportEpicor Prophet 21Wholesale Distribution

Slow-Moving Inventory Review Worksheet for Distributors

Most distributors can run a slow-moving report, but the decision work happens in a spreadsheet. This worksheet takes the numbers you export from your ERP and computes months of supply and excess value, then lets you record what to do with each item.

Download:

Inventory value	Months of supply	Excess over 12 months	Excess value
$4,032	36	120	$2,688
$1,035	9.8182	0	$0
$5,740	56	11	$4,510
$1,418	99	75	$1,418
$1,496	13.8947	30	$204

Total inventory value

$13,721

Total excess value

$8,820

Excess as share of value

64.3%

Share of reviewed inventory value above 12 months of supply.

Items with no usage show 99 months of supply as a flag. Use usage from a consistent period, ideally trailing 12 months of sales and transfers. Add one row per item or per item and location.

Slow-mover report from ERP data

An optional review of generating this view automatically from your inventory tables.

Optional. The tool and every export work without this. No spam.

How to use the worksheet

Export on-hand quantity, unit cost, trailing 12-month usage and last sale date for the items you want to review, then replace the sample rows. The computed columns update as you type. Sort by excess value, review the top items first, and pick an action for each. Export the result to Excel to circulate it to purchasing and sales.

Use the same usage period for all rows
Include transfers in usage if you move stock between branches
Review items with no sales in 12 months first
Check open purchase orders before choosing an action

The method

Months of supply is on hand divided by annual usage, times 12. Excess quantity is the on-hand above 12 months of usage, and excess value is that quantity times unit cost. A 12-month threshold is a common starting point, but fast-turn categories may deserve 3 to 6 months while engineered or seasonal lines can justify more. Change the formula logic by adjusting your own judgement in the action column.

Choosing actions

Return to vendor is the best cash recovery if terms allow, so check return policies first. Promote or bundle works for items with real demand that is just slow. Transfer to branch fits stock that sells elsewhere. Write down or scrap is the last resort and involves finance, since it hits earnings. Record the reason, so the next review does not repeat the debate.

Common mistakes

Using a short usage window that misses seasonality, ignoring items with supplier minimum order quantities that created the excess, and reviewing once a year instead of quarterly. Also review the reorder parameters of excess items, otherwise replenishment buys more of what you are trying to sell down.

Frequently Asked Questions

What threshold defines slow-moving?

There is no universal rule. Many distributors flag items above 12 months of supply or with no sales in 6 to 12 months, then adjust by category. Pick thresholds with purchasing and finance and apply them consistently.

Where do I get the input data?

From an inventory and sales history report in your ERP, exported to Excel or CSV. You need on-hand, cost, trailing usage and last sale date. Paste or type the values into the table.

How does this relate to inventory reserves?

The worksheet identifies candidates. Whether and how much to reserve is an accounting policy decision for your controller and auditors, so use the excess value as an input, not as the reserve itself.

Can I add more columns?

Not on screen, but you can export to Excel and extend the sheet there, for example with vendor, location or open PO quantity. The computed columns come across as values.

If the export, refresh and review cycle is manual, we can discuss a read-only report that builds this view directly from your ERP data.

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