In accounting books, Stocks are written on the left side of the balance sheet, under "Current Assets". So your accountant tells you; "Boss, we have 10 million liras worth of goods in the warehouse, we're rich."
Let me tell you the truth: Lie.
If that goods has been sitting on the shelf for 6 months, it's not an asset; it's a "Financial Tumor" that sucks your company's cash, eats rent, carries obsolescence risk and locks up working capital.
Inventory Management is not counting goods or organizing the warehouse. Inventory Management is "managing money in a different form."
Today, I will tell you how we at Dizdar Audit look at stocks not with a "Warehouse Keeper" eye but with a Statistician, Engineer and Financier eye.
1. You're Managing a Mint, Not a Warehouse
The biggest cash leak for a business is unnecessary stock (Overstock). Bosses generally like to stock up with the logic "Let it sit, there's inflation, prices will rise."
However, there's one thing forgotten: Opportunity Cost. If the monthly financing cost (deposit or credit interest) of the 10 million TL you tied up in that stock is 3-4%; it means your stock is melting by 4% every month where it sits on the shelf.
Our Industrial Engineers calculate the "Economic Order Quantity" (EOQ) not on paper but according to your company's cash flow. We save you from being "stock rich, cash poor".
2. "Knowing the Future" with Statistics Science
Most companies look at "What did we sell this month last year?". This is like looking in the rearview mirror while driving. The Statisticians and Data Scientists on our team come into play in inventory management.
With the forecasting algorithms we've developed; we blend seasonality, market trends and economic data. We don't tell you "You sold 100 last year"; we say "You'll sell 120 next month, order 110 accordingly". Result: Stockouts (Revenue loss) end, overstocking (Cash loss) ends.
3. Dead Stock Hunting (Pareto and ABC Analysis)
In the dark corners of every warehouse, there are "Dead Stocks" that haven't been touched for years. These are like cholesterol in the company's veins.
We apply the Pareto Principle (80/20 Rule). We focus on that critical 20% of stock that makes 80% of your revenue. We clean up the remaining "trash" that doesn't convert to cash. Increasing your warehouse goods' turnover rate (Inventory Turnover) means pumping fresh blood into your company.
Final Word: Goods in Warehouse Is Cash on Shelf
Stop looking at your stocks as boxes, cartons or pallets. Look at them as 100 TL banknotes.
Those boxes gathering dust in your warehouse right now are actually your unused cash. As Dizdar Audit, we combine logistics, finance and engineering disciplines; transforming your warehouse from a burden into a cash-generating center.
Remember; the most expensive stock is unsellable stock.