Inventory & Operations

The true cost of holding excess stock

Slow-moving inventory ties up your money and can quietly hurt your cash flow. Learn how to spot it early and fix it.

Stock boxes: Stock that moves is money. Stock that sits is a cost.

Stock on a shelf is cash that cannot yet pay rent, suppliers or wages. The purchase price is only part of its cost: storage, damage, expiry and the time spent counting it also matter.

Compare what you have with what customers actually buy. Identify items that move slowly, check their age and avoid replenishing them automatically. Seasonal products need a different plan from reliable everyday sellers.

Use regular stock counts and sales records to make smaller, better-timed purchasing decisions. Discuss order quantities and delivery frequency with suppliers. Protect availability for popular items while reducing money trapped in products that sit.

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