Optimize Inventory Decisions to Prevent Stockouts and Capital TrapsOptimize Inventory Decisions to Prevent Stockouts and Capital Traps
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Had an exchange with an inventory planning leader this week that clarified something important.
The stockout and the trapped capital aren't two different problems.
They're the same decision failing in two directions.
A PO placed without enough demand signal creates both outcomes simultaneously. The fast movers run out because the commitment was too conservative. The slow movers pile up because the commitment was too aggressive.
Same decision. Same moment. Two expensive consequences that show up weeks apart and get treated as separate problems by separate teams.
Availability risk shows up as a stockout....the ops team reacts.
Trapped capital shows up as a cash flow problem...finance reacts.
Nobody traces both back to the original commitment made six weeks ago without enough planning weight in the room.
The brands that get this right don't manage inventory better. They make better decisions before the inventory exists.
If your last PO created both problems simultaneously, that's exactly what my inventory diagnostic uncovers.
DM me to start.... or
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