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.
- Implemented review of existing systems, controls and reporting of stock life-cycles to assess impact of stock holding on current cashflows.
- 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.
- Implemented KPIs to ensure buyer ownership of stock levels and delivery of stock life-cycles with quarterly reviews to continuously challenge and review targets.
- Significantly improved process and control procedures for returns improving stock life-cycle and managing risk throughout the business and at the warehouse.
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%.