Stop over-ordering inventory without risking stockouts

Inventory is one of the biggest sources of silent stress for product and retail businesses. Too much inventory means cash locked on shelves. Too little means missed sales and unhappy customers. Most over-ordering comes from a lack of structure, not a lack of discipline.

1. Separate fast movers from slow movers

Not all items deserve equal attention. Often, 20% of SKUs drive most of your revenue. Pull the last 60–90 days of sales, rank by units sold, and mark the top 10–20% as fast movers. Everything else is steady or slow.

2. Use a simple rolling average to estimate demand

You don't need a forecasting engine. A basic 3-month rolling average for each key item often beats gut feel, especially when you're busy. The aim is to smooth out noisy highs and lows so your ordering decisions aren't driven by one unusually good or bad week.

3. Set a minimum level and reorder trigger

For important items, define a minimum level (the lowest quantity where you still feel safe) and a reorder point (minimum level plus what you expect to sell during supplier lead time). When stock hits the reorder point, you place an order. It becomes a system rather than a guess.

4. Deal with slow movers intentionally

Slow-moving stock is frozen cash. Start by quantifying it: on-hand quantity times cost. That number is your opportunity if you can convert it. Use bundles, targeted promotions, or limited "last chance" features rather than blanket discounts.

5. Review monthly instead of annually

Annual inventory reviews lead to big, painful surprises. Short monthly reviews — re-checking what's fast, what's slow, and whether reorder points still fit reality — keep things under control with much less drama.

You don't need more spreadsheets to manage inventory well; you need a simple, repeatable structure that fits the way your business actually moves. Once that structure is in place, cash flow improves and the background worry about "what's in the back" starts to fade.