Solving Inventory Overstock for a Retail Business Problem: A small retail business was tying up c...Solving Inventory Overstock for a Retail Business Problem: A small retail business was tying up c...
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Solving Inventory Overstock for a Retail Business
Problem: A small retail business was tying up cash in slow-moving inventory while frequently running out of its best-selling items — hurting both cash flow and customer satisfaction.
Approach:
Ran an ABC analysis to separate high-demand products (20% of SKUs driving 80% of sales) from slow movers
Recommended a reorder-point system for fast sellers to prevent stockouts
Proposed a clearance/bundle strategy to liquidate slow-moving stock and free up cash
Set a simple monthly inventory review process to keep it from recurring
Result: Projected 15–20% reduction in tied-up inventory cash and fewer missed sales from stockouts, improving overall cash position.
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