How to reduce dead inventory, if its not in use since couple of months & occupying space?

Keeping track of your facility's budget involves more than just maintenance management and capital forecasting. If you aren't extending your budgeting efforts to your supply closet, there's a good chance you're losing money without even realizing it. That said, while dead inventory may be a fact of life, there are things you can do to help reduce it, saving your facility money in the process.

Know where dead inventory comes from:

Inventory doesn't show up at your facility dead on arrival. It's a result of poor planning or other user-facing conditions that result in things not being used. The first step in keeping your inventory from flat-lining is, as you probably guessed, a thorough evaluation of your current inventory across different departments.

Data Mining:

The key to managing inventory & keeping your purchasing efficient is data.  Track not only of how much of a given item you have at any one time, but how often they're purchased, what they're used for, and where they can be found.

What to do when inventory dies

Dead inventory is an inevitability, but it doesn't have to spell disaster for your facility. First instinct may be to try and sell unneeded stock through a bulk purchaser or liquidator.

Not only can these deductions often be more than the amount per-item you'd receive from a liquidator, but it can also lead to a synergy of benefits, allowing you to not just avoid losing money but actually make more. By getting rid of overstocked items, you can free up warehouse space, allowing you to bring in more of what you genuinely need.

Reducing the dead stock/slow movers One of the Primary objective for an Inventory analyst which can be acquired by below strategy Implementation.

1) Use of Economic order quantity -(EOQ) 

2) Systematic stock return process & claiming

3)Using Accurate Forecasting and replenishment strategy to reduce wrong and excess order.

4)Training and Skill development for staffs in ERP forecasting and Supply-chain management systems