Improved Cash Position

A high street retailer was constrained by limited cashflows. Suppliers were delaying deliveries until outstanding debts cleared which in turn was significantly impacting company performance and profits.

Action

  1. Implemented review of existing systems, controls and reporting of stock life-cycles to assess impact of stock holding on current cashflows.
  2. Created Category Stock Reporting Model to analyse and challenge rolling stock forecasts to determine SKU forward week's cover and minimum stock levels required in stores.
  3. Implemented KPIs to ensure buyer ownership of stock levels and delivery of stock life-cycles with quarterly reviews to continuously challenge and review targets.
  4. Significantly improved process and control procedures for returns improving stock life-cycle and managing risk throughout the business and at the warehouse.

Outcome

Following the implementation of stock life-cycle strategies, each buying department managed stock and returns to required KPI's with effective cashflow control and improved cash position 5%.