Case Study: Improving Cash Flow by Liquidating Excess Inventory ??

Hey there, business owners! ??

I'm starting a series of Case Studies where I share real-life examples of how my clients achieved remarkable results. These stories focus on the goals they had, the strategies we used, and the transformations that followed. Today's spotlight is on an Engineering & Manufacturing company that overcame a cash flow challenge by liquidating excess inventory.

The Challenge

My client, 20 years in business, had a huge inventory problem. Cash flow was tight, funds were tied up in excess stock, and it was affecting their operations—no space for new production, delays in deliveries, and improper storage practices leading to wasted materials.

The Goal

We set a clear target: Reduce inventory from ?3.5 crore to ?1.5 crore. That meant freeing up ?2 crore in excess inventory!

The Strategy

Here’s the process we followed:

Step 1: List & Categorize We categorized items as Usable, Sellable, or Scrap, and prioritized them by value.

Step 2:

• For Usable Items Shared lists with teams across production, sales, and design, ensuring stock items were utilized, even with small modifications.
• For Sellable Items Reached out to competitors and contractors, offering competitive pricing. We even bartered items to maximize value!
• For Scrap Items Cleared out space by scrapping obsolete items, freeing up much-needed room for operations.

The Results

In just 3 months, we freed up ?1.5 crore, significantly improving the company’s cash flow. This quick turnaround not only resolved their immediate cash issues but also instilled the importance of inventory control for long-term success.

Want to Boost Your Cash Flow?

If you're facing similar challenges, drop a comment with the word Cashflow, and let’s get started on improving your business!

Stay tuned for more case studies, and in the next newsletter, I’ll share preventive measures for keeping inventory in check!