Dead stock: admitting what is never going to sell
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
A supplier code of conduct sets what you require of the people you buy from. What to include, how to make it enforceable, and why long codes get signed and ignored.
A supplier code of conduct states the standards you expect from the companies you buy from — on labour, safety, the environment, bribery, and how they treat their own suppliers in turn. It is signed at onboarding, filed, and in most companies never referred to again. That is a shame, because it is the only document that gives you a contractual basis to ask questions later, and the difference between a code that works and one that does not is almost entirely about whether a small supplier could realistically comply with it.
Length is the enemy. A forty-page code sent to a twelve-person machining firm will be signed unread, and you will have bought a signature rather than a standard. Two to four pages that a small supplier can actually implement produces more compliance than a comprehensive document produces paper.
Ettex Records holds the signed acknowledgements against each supplier record — who signed, when, which version — which is the question that arrives during a customer audit and the one that spreadsheets answer badly. The code itself belongs with your other published policies, and where your customers require it, alongside the modern slavery statement that draws on the same supply-chain work. The supplier onboarding file is where the acknowledgement should be collected in the first place. Ettex does not audit suppliers and does not assess compliance.
If your customers ask for evidence of supply-chain standards, you need one to pass it down, and increasingly they do. It can be short. What matters is that it exists, is referenced contractually, and is acknowledged.
Ask why before treating it as a red flag. Refusals often come from a specific clause that is impossible in their jurisdiction or unworkable at their size — which is useful information about your code, not only about them.
Your internal code binds your staff; this binds companies you have no authority over, which is why it works through contract and audit rather than through management. Copying the internal one across is the most common reason supplier codes read as unusable.
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
Professional indemnity insurance responds to claims that your advice or work caused a loss. Who needs it, how claims-made cover works, and the gap that catches people who stop trading.
A freight forwarder arranges shipping but does not usually carry anything. What they take on, what remains your liability, and the documents to check before a first shipment.