In the development of industrial world today, a company is required to manage every divisions properly. One of the most important divisions that has an important role is inventory division. PT. X Indonesia is a company that does procurement services for drilling mud. It is a subsidiary company of PT. A. The company faced many difficulties while operating in Indonesia. According to the interview with the supply chain division, one of the problems that emerged was a contingency stock of materials that weren’t used for 12 months and has a substantial value. Therefore, it became dead stock. This research was conducted to proof the initial analysis with the supply chain division about the issue. The purpose of this research is to find the cause and to give the solutions of dead stock from contingency material. The collected data are the materials in 2008-2010 that indicated as dead stock and general procurement process in current conditions. The data was obtained, processed and sorted according to its value and then classified by its type, contingency and noncontingency. After the data was analyzed, it confirms that 87% of the materials are contingency materials. It was discovered that the problem arises largely due to the forecast that is given in the contract has low accuracy. Therefore, strategies is made to minimize the accumulation, and the strategies are collaborative forecast and consigment. That strategies will be run in the procedure for procurement process of contingency materials and will be applied in case studies.