ShelfLens Inventory health check Inventory Health Check · USD 49
USD 61,000 of stock has not moved since March
Stock age, sell-through and replenishment pressure across 1,240 lines.
A quarter of your stock value has not sold a unit in seven months, and eleven of your fastest lines are at risk of going out within a fortnight. Those two problems look opposite and they have the same cause: purchasing is driven by supplier minimums rather than by sell-through.
USD 61,000 of aged stock and eleven imminent stockouts on lines that sell every week. Freeing a third of the aged stock would fund six months of properly weighted replenishment on the lines that actually move.
Age
How old the stock is
| Category | Stock value | Aged share | Turn | Read |
|---|---|---|---|---|
| Power tools | USD 68,000 | 9% | 5.2x | Healthy |
| Hand tools | USD 41,000 | 14% | 4.1x | Healthy |
| Fixings and fasteners | USD 34,000 | 18% | 3.8x | Acceptable |
| Paint and decorating | USD 29,000 | 31% | 2.1x | Colour proliferation |
| Garden | USD 27,000 | 44% | 1.4x | Seasonal, and overbought |
| Plumbing | USD 22,000 | 22% | 2.9x | |
| Electrical | USD 19,000 | 51% | 1.1x | Largest problem by share |
Electrical is half aged on USD 19,000, and garden is 44 percent aged on USD 27,000. Together they are USD 21,600 of the USD 61,000 and neither has been reviewed since it was bought.
Risk
The eleven going out
| Line | On hand | Weekly sales | Weeks left | Lead time | Status |
|---|---|---|---|---|---|
| Wood screws 4x40, 200pk | 31 | 18 | 1.7 | 3 weeks | Will stock out |
| Silicone sealant, clear | 24 | 14 | 1.7 | 2 weeks | Will stock out |
| Masking tape 48mm | 38 | 21 | 1.8 | 2 weeks | Will stock out |
| PTFE tape | 42 | 19 | 2.2 | 2 weeks | Marginal |
| Sandpaper mixed pack | 29 | 12 | 2.4 | 3 weeks | Will stock out |
| Cable clips 6mm | 51 | 20 | 2.6 | 2 weeks | Marginal |
| Wall plugs, brown | 88 | 31 | 2.8 | 2 weeks | Marginal |
| Six further lines | 2.9 to 3.4 | 2 to 3 weeks | Watch |
Four lines will run out before a reorder can arrive. All four are low value, high frequency consumables, which are the lines customers come in for and then buy something else alongside.
Locations
The two stores are not the same shop
| Store A | Store B | |
|---|---|---|
| Power tools | 71% | 48% |
| Hand tools | 64% | 59% |
| Fixings | 68% | 72% |
| Paint | 31% | 54% |
| Garden | 22% | 47% |
| Plumbing | 44% | 51% |
| Electrical | 18% | 39% |
Store A sells power tools and barely sells garden. Store B is the reverse. Both carry the same range in roughly the same proportions, because purchasing is done centrally against a single template.
Actions
In order of cash released
- This week
Emergency order the four critical lines
Wood screws, sealant, masking tape, sandpaper. Pay the premium for a short lead time once. These are basket-opening products.
- This week
Transfer between stores
About USD 14,000 of stock into the shop that actually sells it. No cost beyond the van.
- Two weeks
Set reorder points from sell-through, not minimums
Every one of the eleven has a reorder point below two weeks of cover on a two to three week lead time. That is arithmetic, not bad luck.
- This quarter
Clear the electrical aged stock
USD 9,700 at cost, 51 percent of the category, over a year old. At 40 percent off cost it releases about USD 5,800 of cash and a bay of shelving. Holding it has already cost more than the discount.
- Ongoing
Review anything with no sale in 90 days, monthly
Fifteen minutes. Every item in the USD 61,000 passed through 90 days at some point with nobody looking.
- Four critical lines ordered
- Reorder points recalculated against lead times
- Inter-store transfer completed
- Electrical clearance priced and started
- Garden buying paused until next season is planned
- 90 day no-sale report scheduled monthly