More product isn't always more business. When capital falls asleep on the shelf, a company can sell a lot and breathe very little. Here's how we'd work that situation, step by step.
This is an illustrative scenario: it represents the kind of problem an owner brings us and how we'd approach it. It does not describe a real client or guarantee results.
“My warehouse is full and my account is empty. I deliver to more than four hundred stores and a thousand products, but I don't know which ones pay and which just run me in circles. I over-buy out of fear of falling short, and the money falls asleep on the shelf.”
The kind of owner who comes to us — an illustrative voice, not a real client.
There's no formula for inventory. There are three answers worth sorting out first.
What share of your inventory hasn't moved in the last ninety days — and how much of your money is asleep there?
Among your clients, how many buy so little that serving them costs more than they leave you?
If you had to choose, would you know which products carry the business and which only get in its way?
The 16% of products generated 84% of profit. The rest filled half the warehouse and left asleep $350,000 of your capital — bought out of fear of falling short, not real demand.
A few decisions, well chosen. Each one measured in a single number.
We separated the products that carry the business from those that just take up space. The active catalog went from 1,180 to 640 SKUs, without touching the sales that matter.
We cleared the slow inventory in an orderly way instead of keeping on buying it. $240,000 of cash was freed in five months, with no panic fire-sale.
We classified clients by what they truly leave and redesigned delivery routes around those that actually carry weight. Delivery cost fell without losing useful coverage.
Instead of the report no one reads, the owner receives the handful of figures they can actually steer the week by — and a call when something is worth correcting in time.
We don't arrive with an inventory formula or a branded method. We start by understanding your operation from the inside — what turns, what stalls, which client pays for the space it takes — and translate that into the few decisions that free cash and focus the business.
You stay in command; we put an experienced hand on the helm and give you back numbers you can steer the business by, not just watch it. In complete discretion, and at a fraction of the cost of a full-time finance director.
Let's talk about yours. The first conversation is to understand, not to sell.