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$8,388,550.89 of stock has not moved in over two years

Anything that has not moved in over two years is written down in full, so it adds nothing to what the stock is worth — but it is still cash sitting on a shelf, taking up space. The question here is what to do with it, not what to value it at.

What it is on the books at

$8,388,550.89

What it is worth after write-down

$0.00

Sitting longest

BRO-TS-285Q @ ATL, 1,500 days

Negative stock on hand (1)

The warehouse system has shipped more than it ever received, which cannot happen in reality. The line carries a negative value that quietly cancels out good stock in every total it lands in.

Which SKUs

BRO-DQ-9004

Lines affected

1

Value at stake

-$799.00

Stock with no cost against it (1)

With no cost, these lines value at zero and get no write-down, so the inventory total is understated by an amount nobody can size. Every figure that touches these SKUs is wrong until someone supplies a cost.

Which SKUs

BRO-DQ-9001

Lines affected

1

Value at stake

$0.00

HAM is out by $41,200.00

Cumulative unexplained balance from 27 monthly plug journals (BRK-005).

Per the warehouse

$28,615,329.30

Per the ledger (1400000)

$28,656,529.30

Gap

-$41,200.00

As a share of the site

0.14%

JUR is out by $28,450.00

Cin7 to Xero sync gap — 214 transactions never reached the GL (BRK-001).

Per the warehouse

$28,747,185.22

Per the ledger (1400)

$28,718,735.22

Gap

$28,450.00

As a share of the site

0.10%

5,214 lines are within 45 days of a heavier write-down

If this stock does not move, the write-down steps up on its own and inventory is worth less. That is the charge next period inherits unless the stock sells or gets transferred first.

Extra write-down coming

$9,910,230.08

Tips over first

BRO-FB-100K @ JUR, 1 days

Stock affected

$36,774,710.62

Stock with no product class (1)

Product class is how most adjustments pick what they apply to. A line with no class slips past every one of them, so scenarios quietly miss it.

Which SKUs

BRO-DQ-9002

Lines affected

1

Value at stake

$4,402.00

Stock with no known supplier (1)

Anything you do by supplier — analysis, adjustments, performance reporting — leaves this stock out.

Which SKUs

BRO-DQ-9003

Lines affected

1

Value at stake

$25,665.00

Accessories costs 149.6% more than average to run

Accessories spends $13.06 on freight, storage and handling for every $100 of stock it holds. The company average is $5.23. The gap shows up in 8 of 8 cost types, so this is the rate card or the site itself, not one bad line.

Spent moving and storing

$1,567,467.82

Stock held

$12,001,847.92

Cost per $100 of stock

$13.06

Company average per $100

$5.23

Spent above average

$939,568.06

Cost types out of line

8 of 8

Apparel costs 143.6% more than average to run

Apparel spends $12.74 on freight, storage and handling for every $100 of stock it holds. The company average is $5.23. The gap shows up in 8 of 8 cost types, so this is the rate card or the site itself, not one bad line.

Spent moving and storing

$1,434,582.17

Stock held

$11,256,138.65

Cost per $100 of stock

$12.74

Company average per $100

$5.23

Spent above average

$845,695.63

Cost types out of line

8 of 8

Packs & Bags costs 75.1% more than average to run

Packs & Bags spends $9.16 on freight, storage and handling for every $100 of stock it holds. The company average is $5.23. The gap shows up in 8 of 8 cost types, so this is the rate card or the site itself, not one bad line.

Spent moving and storing

$1,587,395.18

Stock held

$17,332,434.02

Cost per $100 of stock

$9.16

Company average per $100

$5.23

Spent above average

$680,615.56

Cost types out of line

8 of 8

FBA-US costs 39.6% more than average to run

FBA-US spends $7.30 on freight, storage and handling for every $100 of stock it holds. The company average is $5.23. The gap shows up in 8 of 8 cost types, so this is the rate card or the site itself, not one bad line.

Spent moving and storing

$2,110,489.22

Stock held

$28,907,254.65

Cost per $100 of stock

$7.30

Company average per $100

$5.23

Spent above average

$598,150.60

Cost types out of line

8 of 8

XIT-CNSG costs 625.7% more than average to run

XIT-CNSG spends $37.96 on freight, storage and handling for every $100 of stock it holds. The company average is $5.23. The gap shows up in 8 of 8 cost types, so this is the rate card or the site itself, not one bad line.

Spent moving and storing

$379,233.33

Stock held

$998,924.16

Cost per $100 of stock

$37.96

Company average per $100

$5.23

Spent above average

$326,972.69

Cost types out of line

8 of 8

Holding 122.1 days of stock — 32.1 days more than the 90-day target

Every extra day of stock is cash sitting on a shelf instead of in the business. Getting back to target would free up the amount below.

Days of stock held

122.1 days

Target

90 days

Times the stock turns over a year

2.99

Cash tied up in the excess

$45,720,504.54

Camp & Shelter costs 59.0% less than average to run

Camp & Shelter runs cheaper than the company average. Worth understanding why — it is the benchmark for the sites that run hot.

Spent moving and storing

$1,539,645.83

Stock held

$71,834,521.44

Cost per $100 of stock

$2.14

Company average per $100

$5.23

Saved against average

$2,218,515.31

Cost types out of line

8 of 8

$22,463,802.81 could be freed up from slow and dead stock

This assumes a clearance recovers 50 cents on the dollar for slow-moving stock and 80 cents for stock that has stopped moving entirely. Those are working assumptions for sizing the prize, not a promise.

Slow-moving (6-12 months)

$26,323,108.36

Not moved in over a year

$11,627,810.79

Cash a clearance could return

$22,463,802.81

Share of all stock held

26.2%

Draft: renegotiate storage and handling at FBA-US

FBA-US is the most expensive site to run. This models a 10% cut to its storage and handling rates, so you can size the saving before you sit down with the provider.

Warehouse

FBA-US

Storage and handling today

$681,754.81

Saving at 10%

$68,175.48

The suggestion: FBA-US Rate Card Renegotiation (Draft) — 2 changes. Accepting saves it switched off. Nothing moves until you switch it on.

Draft: write dead stock down to zero

Takes stock that is already written down in full and removes it from the books entirely. The value of your inventory does not change — it was worth nothing already — so this shows exactly what a disposal would clear off the balance sheet.

What it covers

25 lines — the largest by value. 1,071 smaller lines worth $7,090,676.08 are not in this draft.

Cleared off the books

$1,297,874.81

Dead stock in total

$8,388,550.89

Change in what stock is worth

$0.00

The suggestion: Obsolescence Write-Down (Draft) — 25 changes. Accepting saves it switched off. Nothing moves until you switch it on.