Turn Stock into Cash
Reduce cash trapped in inventory without stockouts. Improve turns, rationalize SKUs, and free cash that's sitting on shelves.
"Every SKU on your shelf is a cash allocation decision. Make sure each one is earning its keep."
Inventory is cash sitting on shelves. Every unit of inventory represents cash you've spent that you can't use for anything else until that unit sells. For many businesses, inventory is the largest trap of working capital - and the hardest to optimize.
The goal isn't minimum inventory - it's right-sized inventory. Enough to meet demand without stockouts, but not so much that cash is trapped in slow-moving products. This requires understanding your turns by SKU, identifying what's not selling, and making hard decisions about product mix.
In this topic, you'll learn to analyze inventory turns, identify slow-moving and obsolete inventory, implement right-sizing strategies, and free cash that's currently trapped on shelves.
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Ask Working Capital AI about Inventory Optimization. Get thoughtful dialogue, not quick answers.
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Inventory turns vary by product - don't apply one standard to all SKUs
The 80/20 rule applies: 20% of SKUs usually drive 80% of inventory value
Slow-moving inventory doesn't get faster - liquidate or write it off
Safety stock is insurance - but insurance has a cost (trapped cash)
Forecast accuracy improves inventory efficiency - invest in demand planning
Start a conversation with Working Capital AI and deepen your understanding through guided dialogue.