Inventory Management

Inventory Aging Isnt Just a Reporting Problem

Translytics Editorial Team
4/7/2025
4 minutes
👁️ 1036

Inventory Aging Isn't Just a Data Problem — It's a Decision Problem

Introduction

Inventory aging often goes unnoticed until it starts hitting the bottom line — and even then, the signs are often buried inside ERP reports, visible but unaddressed. One of our clients recently discovered ₹5 Cr worth of finished goods that had remained unsold for over 90 days.

The ERP's aging report flagged the issue clearly. So, what went wrong?

The truth is: visibility alone isn't enough. Knowing something is wrong doesn't mean knowing what to do next.

The Real Problem: A Lack of Decision Logic

Many companies think that building a dashboard or generating a report will fix their aging inventory. But aging stock isn't just a reporting issue — it's a decision-making failure.

In our client's case, the data was available. The problem was that no action framework existed to convert that data into intelligent, timely interventions.

How We Solved It: Embedded Rule-Driven Intelligence

At Translytics, we implemented a rule engine designed specifically to act on inventory aging triggers — tailored to the client's industry, product velocity, and demand variability.

Key Features of Our Aging Rule Engine:

Triggered Alerts when inventory crossed 30, 60, or 90 days

Replenishment Recommendations adjusted for demand trends and existing stock

Production Planning Adjustments for slow-moving SKUs

Classification Logic (ABC/XYZ) to prioritize what needed immediate action

The system didn't just flag aged inventory — it offered actionable guidance.

The Impact: 28% Drop in Aging Inventory in 6 Weeks

Once the rules went live, the results were clear:

📉 Aging inventory dropped by 28%

📦 Overstocked SKUs were de-prioritized in production schedules

📊 Procurement and manufacturing aligned more closely with sell-through

📈 Working capital was released, improving cash flow

This wasn't about adding another layer of reporting. It was about enabling the supply chain to act early and decisively — before aging stock became a financial drain.

Why Dashboards Alone Aren't Enough

Too many organizations treat inventory management as a visibility challenge. But what they truly need is:

🚦 Built-in triggers for exception management

🔁 Dynamic rules that adapt to real-time data

⚙️ Embedded intelligence in planning workflows

Because real value isn't in knowing what's wrong — it's in automatically knowing what to do next.

Conclusion: Aging Inventory Is a Silent Killer — Until You Give It a Voice

ERP systems can tell you what's sitting idle. But only a responsive, intelligent layer of decision logic can stop that idle stock from growing — and turn your supply chain from reactive to responsive.

Smart inventory management isn't about more dashboards.

It's about smarter decisions — embedded, automated, and aligned.

Inventory AgingRule EngineInventory OptimizationERPSupply Chain InsightsDecision AutomationTranslytics