By reducing your overall inventory levels, you can free up valuable capital so you have more cash in hand for other areas of your business.
It’s important that you only reduce the right items by the right amount however, so you still have enough stock on hand to meet demand.
StockTrim makes this easy – the excess stock figure on the dashboard shows how much you can save in total. It’s the sum of the value of each item where you have more stock on hand than you’re forecasted to sell over the supplier lead time.
The amount of excess stock is the difference between the current stock level (which includes the on-order amount) and the optimal reorder point for each item.
You can save money by holding off on placing orders of these items for now, and wait until the stock level reaches the reorder point, or the number of days left reaches the lead time.
Now you know how much stock to keep for each item, you can plan in advance when you will need to re-order them. It’s up to you whether you wait for them to sell at the current rate, or offer promotions or package deals to move them on at a faster rate.