Smart inventory management is the difference between good profits and cash flow problems. Here’s how to analyze what you’re selling.

Fast Movers:
 Products that sell quickly and regularly. These are your profit drivers. Key strategy: Never run out. Set up automatic low-stock alerts.

Slow Movers:
 Products that eventually sell but take time. Key strategy: Don’t overstock. Order smaller quantities more frequently.

Dead Stock:
 Products that haven’t sold in months. Key strategy: Clear them out with discounts to free up cash for fast movers.

How to Identify Each Type:
 Good POS software (like Aasan Accounts) provides stock movement reports showing sales frequency. Look at:

  • Units sold per week/month
  • Days of inventory on hand
  • Last sale date

Practical Action Plan:

  1. Run monthly stock movement reports
  2. Identify products with zero sales in 90 days
  3. Plan promotions to clear slow and dead stock
  4. Increase stock of fast movers (don’t lose sales!)
  5. Adjust purchasing patterns based on real sales data

Real Impact:
 A Karachi electronics store freed up Rs. 500,000 in cash by clearing dead stock and focusing on fast movers, increasing monthly profits by 40%.