As the economy opens demand for products slowly starts to increase, businesses should revisit their #stock management #strategies.
Min stock levels are to be realigned to post #Covid-19 demand. Revenue recovery #projections are critical to step up/down optimal stock levels within the business. Understand average stock turn rates for key stock items.
Running down stock levels will assist with #cash retention for the business, allow for working capital gearing and for the business to realign to its new market. Keep in mind reduced purchases = less input #vat so plan for higher vat cash outflows.
#Obsolete stock provision policies need to be revisited, more importantly strategies to mitigate actual stock losses on limited shelf life items – perhaps use these to run sales, even if it means marking them below cost to increase consumer foot traffic.
Supplier volume #rebates try renegotiating these not just foregoing them. Understand the impact of Covid on your supply chain. Critical stock replenishments, lag times, alternate providers.
Identify #opportunities whereby you may have stock of high demand items with limited supply – allowing for price review, #margin improvement.
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