Dead Stock मैनेजमेंट के 4 धांसू तरीके। Dead Stock Management | Business Tips for Retailers

Inventory Management Rules for Fashion Retailers

The video presents four rules to help fashion retailers balance everyday cash flow, seasonal demand, and the risk of unsold stock.

1. Use a 60/30/10 Buying Allocation

• 60% for economical and mid-range products that sell regularly and support daily cash flow.
• 30% for premium, heavy, or festive merchandise, which may sell less often but can offer higher margins.
• 10% for complementary items such as blouses, dupattas, matching pieces, and accessories.

Key takeaway: Don’t put the entire budget into expensive, high-margin merchandise. Steady-selling products help fund routine operations.

2. Plan Festival Stock 45 Days Ahead

Have seasonal merchandise on the shop floor 45 days before a festival. Customers may begin shopping 20–25 days in advance, while ordering, transport, unpacking, and tagging also take time.

Plan around when products need to be ready for sale—not just the festival date. Ordering too late can mean stock arrives after the rush has begun.

3. Apply the 30% Red Line Reorder Rule

Consider reordering a design when approximately 30% of its stock remains, but only if there are at least 15 days left before the festival.

If fewer than 15 days remain, avoid replenishing and risking unsold seasonal inventory. A fast-selling design is not automatically a reason to double the order; check the remaining selling window first.

4. Keep a 15% Cash Reserve

Keep 15% of the purchasing budget available for unexpected trends or product shortages.

For example, with a ₹1 lakh budget, spend ₹85,000 initially and retain ₹15,000 as backup cash. The subtitles appear to misstate the example amounts, but this is the allocation implied by the 15% rule.

The reserve preserves flexibility instead of tying up all available cash in initial purchases.

Key Operating Principles

• Manage buying with accounting and planning rather than relying on luck or excitement over a short-term bestseller.
• Balance cash-flow merchandise, higher-margin seasonal products, and complementary items.
• Use clear timing and inventory thresholds to reduce late arrivals, over-ordering, and stock left over after the selling season.

Quick Reference

Measure Guideline Merchandise allocation 60% / 30% / 10% Seasonal display lead time 45 days before the festival Customer shopping lead time 20–25 days before the festival Reorder trigger Approximately 30% of a design’s stock remains Reorder cutoff At least 15 days before the festival Cash reserve 15% of the buying budget

Presenter: Ajay Ajmera, as identified in the video description Channel: Ajmera Fashion Shorts