Chapter 2

Is a full warehouse wealth, or a slow leak?

Kho đầy hàng là giàu, hay đang nghèo đi?

The chapter's question

How much of my capital sits in items that sell less than once a month?

Big idea

Stock that does not sell is not an asset. It is cash locked up, plus the rent for the space to lock it in.

In this chapter

  1. Part 2.1

    Days of stock, not value of stock

    How many days has each SKU been sitting in stock, and how much capital is trapped in the slowest ones?

  2. Part 2.2

    Cut the tail with numbers

    Which SKUs cost me more work than they bring in, and by what threshold do I cut them?

  3. Part 2.3

    Reorder points counted in lead-time days

    When must I place the next order so I neither run out nor overstock?

  4. Part 2.4

    Count stock in cycles, not once a year

    How far does my recorded stock differ from what is on the shelf, and for which SKUs?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of The Seller Handbook: One Order, One Warehouse, One Customer is free to read right here.

Read in Conan School

Chapters of The Seller Handbook: One Order, One Warehouse, One Customer

  1. 1.So many orders, so why is there no money?
  2. 2.Is a full warehouse wealth, or a slow leak?
  3. 3.Do I own my customers, or just rent them?
  4. 4.How does a profitable seller still run out of cash?
  5. 5.Why does every month feel like starting from zero?