Business
Challenge:

Driving Efficiency through Aged Stock Intelligence

A large retailer with a vast and complex supply chain faced a critical challenge in managing aged stock. Their multi-location inventory system, while extensive, lacked the granular data required to proactively identify and clear ageing products before they became a significant financial liability.

TurnB Approach


TurnB designed and implemented a smart, data-driven system to manage aged stock from identification through clearance. 

  • Intelligent Identification: 

Created a smart algorithm to identify aged stock by analysing purchasing periods, sales velocity, and other relevant factors. This included handling the complexity of inventory transfers between locations, not just directly purchased stock. 

To address the complex challenge of determining true stock age, TurnB developed an algorithm based on the FIFO (First-In, First-Out) principle. This logic went beyond simply referencing a product’s purchase date. For transferred items, the system traced inventory history back to the original location, ensuring accurate ageing identification. 

  • Real-Time Visibility: 

Developed a real-time dashboard providing instant visibility into aged stock across all locations. The dashboard included comprehensive stock age analysis segmented by age intervals, departments, and categories. 

  • Targeted Clearance Strategy: 

Implemented a clearance tracker with monthly targets for each department. These targets were defined using historical trends and planned promotions, creating a clear and measurable framework for performance.

Approaches background
Infograph

Implications

The implementation delivered significant and measurable results: 

  • Aged Stock Reduction: 

Enabled a consistently leaner inventory by supporting targeted clearance strategies, resulting in a 17% reduction in average aged stock over six months. 

  • Improved Cash Flow: 

Accelerated conversion of aged inventory into liquid assets improved overall cash flow.

  • Enhanced Customer Satisfaction: 

Fresher and more relevant product availability contributed to improved customer satisfaction. 

By introducing a precise and methodical approach to inventory management, TurnB transformed a complex operational challenge into a strategic advantage, driving tangible value and enhancing operational efficiency.

Enquire Now