The test

Sage saw eighteen months. The next six were hidden.

It made every call blind — which products were finished, which were overstocked, which to leave alone. Only then were the hidden months revealed and the calls scored. No number on this page comes from data the engine had seen.

448 trading days · visible
156 days · hidden
1 Dec 20099 Jun 2011 — calls made9 Dec 2011
Every call Sage made in June 2011, scored against December
Sage said Products Capital at risk Sold nothing after
Dead — stop reordering542€272,10880%
Excess — stop reordering536€355,4563%
Slow — hold off220€15,6003%
Healthy — no action9476%
Reorder now 1,05994%

† The one bad row, left in on purpose. A product that has gone silent and already run down to zero stock has nothing on the shelf to flag, so it falls through to “reorder” instead of “dead”. It costs nothing today — the quantity it computes is zero, so no money moves — but the label is wrong, and it is the next thing we fix.

Read the rest downward. Stock Sage called dead mostly never moved again. Stock it called excess did sell, slowly — which is what excess means, and why the advice there is to buy less rather than to dump it. Products it left healthy carried on. The gap between the first row and the fourth is the entire product.

Why silence, and not a trend

Products do not fade. They stop.

Before building anything we checked the shape of the problem, because if there is no downward slope then every method that looks for one is useless.

SKU 79323P — weekly units sold, December 2009 to December 2011
253 126 0 last sale — 16 Jan 2011 nothing for the next 85 weeks Dec 2009 Jun 2010 Dec 2010 Jun 2011 Dec 2011 7,324 units still on the shelf, €23,437 at cost

There is no downward slope to catch. The product sells, and then one week it does not, and it never does again. That rules out trend-chasing entirely.

What works instead is noticing silence — a product quiet for far longer than it has ever been quiet, judged against its own rhythm. A line that sells every three days is in trouble after three weeks. One that sells every six weeks is not. That per-product rhythm is the whole method, and it needs no forecast at all.

Financial impact

What the test found

€272,108
Capital at risk
Cost of stock in the 542 products Sage called dead.
€32,361
Avoidable purchasing
Bought again, on stock Sage had already flagged. 30,653 units across 55 products.
€502
Per flagged product
Average capital behind one alert. The buyer sees the largest first.
185 d
Already silent when flagged
Median. Half had been dead longer than that and nobody had said so.

What we claim, and what we don’t

Four numbers get called “savings”. Two of ours are measured.

If a vendor shows you one big number and calls it savings, ask them which of these four it is.

Capital at risk
€272,108
Measured. Cost of stock in products Sage called dead, 80% of which then sold nothing for six months.
Avoidable purchasing
€32,361
Measured against a simulated buyer. Purchase orders that still went out on stock Sage had already flagged. A real buyer may behave differently.
Recovered capital
Not claimed
Depends on the exit: supplier return, discount, outlet, scrap. We tested liquidation at a quarter of cost and it lost money on every category — which is why Sage says “stop reordering” and never “dump it”.
Validated savings
Not claimed
Requires running alongside a real buyer for a season and comparing what they bought. No company has done this yet. Yours could be the first.

Where the data comes from. Demand is real: two years of a wholesaler’s invoice history, 1.07 million order lines, publicly available. The warehouse around it — unit cost, supplier, lead time, case pack, stock on hand — is not in that data, so it is simulated. The silence Sage detects is therefore real customer behaviour. The euros are real quantities priced at modelled costs, so read them as scale rather than one company’s books. On your file, both halves are real.

Next

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