Slow Moving Stock, And What To Do About It!
While you, the Owner is running from one high priority/crisis to another, at some point the problems caused by slow-moving stock come square into focus, for any of the following reasons:
- You’re running out of warehouse space
- You’re continuously writing off huge amounts of stock
- You don’t have enough cash to buy new stock
- Certain stock is becoming obsolete
- Your sales team are struggling to sell it
……the list goes on (and we didn’t even mention the “C” word, Covid19 in the above list).
Whatever the reason, slow moving stock is costing you and your Business money and is a sign of “Trouble” ahead whether it is in the next few days, weeks or months.
Short-terms solutions are not going to fix the problem.
On a day to day basis you are fighting multiple fires on multiple fronts, and therefore perhaps typically approach the problem of “Stock” in bursts of frustration. Usually pulling “someone” into your office and making this issue “Priority 1” that must be solved now, immediately, if not sooner.
The ripples are felt throughout the business, but because the Owner is now moving on to the next fire, it can be weeks or months before they come back around to taking a look at the same problem and for the most part the problem has not improved, more often that not it’s got worse.
The irritation increases, and the cycle continues until, on a day, at a time there’s a massive blow-up from the frustration and perceived lack of progress.
Don’t let that happen to you…..What to do if you have this problem:
- Identify a person, other than you, who is accountable for solving the problem
- Give them the task of collecting the information
- Clearly state the deadline for putting this together
- Put a (short) meeting in the diary to sit and review what the data is telling you
- What systems & processes (if any) are in place for stock control? Do they need to be reviewed?
- Set out actions that must be completed by someone else, not you
- Sit and review weekly at the start, then monthly ongoing
- Make the problem someone else’s in your organisation, not just yours.
If stock is causing you “Trouble” in your Business it must be resolved – But remember, not all “Trouble” needs to be solved by you.
If you need a “Troubleshooter” just give us a call or click below to contact us….