Productivity Level 0 - Unproductive (target 7% and lower)

Unproductive inventory is the dollar value (quantity on hand multiplied by average cost) of inventory that has not sold in over two years and with over two years of supply, divided by total inventory value.  SKU-level detail can be found in your MEGA Report, Obsolete and Overstock tabs. 

Your unproductive metric is made up of two separate components: Obsolete - SKUs not sold in over two years, and Overstock - SKUs with over two years of supply. 

Unproductive inventory is an inevitable part of retail as inventory becomes outdated, residue builds from sale bills, and when customers don't buy exactly the quantity we anticipated when that two-pallet deal shows up. This inventory is expensive to keep around because it absorbs labor, shelf space, and investment. Because of this, it's critical for a store to have an ongoing process to manage its unproductive inventory; it is Level 0 because it's such a foundational retail process. Stores with an ongoing unproductive management process can take more inventory risks (deepening and adding new items) because if an item doesn't sell as anticipated then it will systematically be churned out and converted back into cash to be used for the next investment.

1. For Obsolete inventory, see Mango's Closeout Management system.
2. For Overstock inventory, see MEGA Report Overstock tab help.