Aged inventory is like plaque in your arteries — it restricts your cash flow. To boost turn and start generating cash flow, you must manage inventory aggressively.
If you have too much aged inventory, your clients have basically told you they don’t like your merchandise, and you need to get rid of it.
There are a lot of suggestions out there on what to do with aged inventory. Some entail marking the product up, or re-merchandising (add adding a center diamond). With some exceptions, my issue with these types of approaches is that they prolong the problem. I prefer to take action.
Getting the right mix requires inspiration and hard analysis.
Aged inventory is like plaque in your arteries — it restricts your cash flow. To boost turn and start generating cash flow, you must manage inventory aggressively.
If you have too much aged inventory, your clients have basically told you they don’t like your merchandise, and you need to get rid of it.
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There are a lot of suggestions out there on what to do with aged inventory. Some entail marking the product up, or re-merchandising (add adding a center diamond). With some exceptions, my issue with these types of approaches is that they prolong the problem. I prefer to take action.
SHORT-TERM ACTION