Screenrecording 20261022 182538

Overview

The episode focuses on managing slow-moving and dead stock (“BM” in the subtitles) before it erodes inventory value, ties up working capital, and suppresses sales. The speaker argues that merchandise inventory is unlike a financial investment: its value generally declines over time, and waiting for unsold goods to recover can leave a business with stock that is difficult or impossible to sell.

Inventory Management Playbook

• Diagnose and segment inventory: Classify goods as fast-moving, slow-moving, new, or dead stock. Fast-moving items are the main contributors to turnover; slow-moving items need intervention, while dead stock should be liquidated.
• Act as soon as stock slows: Don’t wait for an item to be formally classified as dead stock. The speaker says this can take at least four months under a commonly used formula, by which time its value may have fallen further.
• Liquidate and reinvest: Use discounts, bundles, BOGO offers, or warehouse-clearance events to convert slow- or dead stock into cash. Reinvest the proceeds in proven fast-moving products rather than buying more clearance or unproven items.
• Protect working capital: When cash is trapped in inventory, consider short-term funding or negotiating supplier payment terms. Maintain supplier trust and honor payment commitments.
• Set and monitor a purchasing budget: Establish a budget for fast-moving items and enforce it consistently. Having a budget without disciplined monitoring is not enough.
• Use an open-to-buy (OTB) calculation: The speaker gives the basic formula as:

Planned purchases = desired sales + planned ending inventory − beginning inventory

Set realistic sales targets based on actual inventory and available cash, rather than purchasing as if an aspirational target were guaranteed.

• Evaluate new products periodically: Review early sales signals daily at first, then across the first and second weeks. If a launch shows no signs of demand, stop replenishing and coordinate the decision with the relevant team. Product innovation also needs marketing: customers must know the product exists.
• Separate genuine exceptions from dead stock: Seasonal products that may sell again can be tracked separately, stored carefully, and excluded from the portion targeted for immediate liquidation. Basic, durable items may also warrant separate treatment if they are not fashion- or technology-sensitive. Do not use these exceptions to justify retaining genuinely obsolete goods.

Metrics and Examples

• In an audience poll, 63% agreed that most items in their stores had “red” stock status; 19% disagreed, and 19% were unsure. In a later poll, the reported share disagreeing was 6%, so the figures appear inconsistent in the subtitles.
• Reported dead-stock estimates included 31% of respondents below 5%, 9% above 5%, 3% above 10%, 9% above 20%, and 25% above 30%. 16% said they did not know how to measure it. The categories may overlap or be mistranscribed.
• Respondents identified buying without using data (44%) and choosing the wrong items (53%) as major causes of slow- or dead stock. Other cited issues were being able to buy but not sell (38%) and overly crowded displays (28%).
• The speaker’s illustrative inventory mix is 100 units: 20 fast-moving, 50 slow-moving, and 30 dead stock. The example shows how a large nominal inventory can produce limited turnover when much of it is slow or unsellable. These figures are illustrative, not a universal benchmark.
• For seasonal stock, the speaker recommends identifying which items are likely to regain demand next season, preserving their quality during storage, and discounting truly outdated designs when they are offered again. Examples included out-of-fashion character designs on PVC doors and seasonal goods left over after holidays.

Source

• Presenter: Mr. Kuswa, as addressed by participants during the Q&A; his full name is unclear in the subtitles.
• Source: Episode 252 of Retail Zoom S, published on the Ibnu Hidayat channel.