If you’re running a D2C brand, retail business, or trading setup, you already know this:
Inventory is one of your biggest costs.
But here’s what most founders miss — it’s also one of your biggest opportunities.

💡 A clean inventory audit can unlock lakhs — sometimes crores — of trapped cash.

If you’re not doing regular, structured inventory reviews, chances are your margins aren’t real, and your working capital is stretched thinner than it looks on paper.

How Stock Mismanagement Quietly Destroys Margins — and How to Fix It

Inventory ≠ Dead Weight — It’s Data

Most businesses treat inventory like a static cost:
→ Buy. Store. Sell. Repeat.

But your inventory tells a deeper story — if you know how to read it.

A focused inventory audit can uncover:

1. Leakages

Stock loss due to theft, spoilage, pilferage, miscounts, or undocumented returns.

💥 Even a 2% leakage in a ₹10Cr business = ₹20L lost quietly every year.

2. Slow Turnover

If your stock is sitting for 90+ days without movement, it’s not inventory — it’s dead capital.

And worse — you’re still paying to store it, insure it, and possibly discount it later.

3. Over-Ordering

When procurement isn’t aligned with actual sales velocity, you end up sitting on excess stock.

That’s money that could’ve gone into marketing, product dev, or hiring — now frozen on a shelf.

Real Case: ₹2.1Cr Locked in Inventory — What We Did

One of our retail clients had consistent YoY sales growth — but their margins were falling, cash flow was tight, and vendor payments were getting delayed.

We ran a 3-week inventory audit.

Here’s what we found:

• ₹1.3Cr in slow-moving stock (120+ days old)
  
• ₹55L in over-ordered seasonal SKUs
  
• ₹28L loss due to return leakages and undocumented write-offs
  

Total idle cash: ₹2.1Cr

We helped them:
✅ Liquidate dead stock with a controlled clearance
✅ Align purchase planning with real-time sales data
✅ Implement weekly cycle counts + loss tracking

Within 60 days:
→ Vendor dues cleared
→ Margins recovered
→ Inventory value dropped without hurting sales

Use This 3-Step Audit Model:

Physical vs System Reconciliation

• Match physical stock with ERP/Tally numbers
  
• Flag mismatches, expiries, pilferage
  

Ageing + Movement Analysis

• Group SKUs by movement velocity
  
• Mark all 60/90/120+ day inventory for review
  

Procurement & Forecast Alignment

• Cross-check POs against historical sales data
  
• Adjust ordering rhythm to match cash cycle, not just sales targets
  

Stock Mismanagement – A Final Word: Your Stock Isn’t Just Sitting — It’s Speaking

Every extra unit lying in your warehouse is a rupee not being used elsewhere.

Stop treating inventory like a warehouse problem.
Start treating it like a financial asset.

Want to Find Hidden Cash in Your Stock?

We run inventory audits for D2C, retail, and trading brands —
and we’ve seen it unlock anywhere from ₹5L to ₹5Cr in working capital.

DM us “STOCK AUDIT” and we’ll send you our proprietary inventory audit template — free.

Let your stock start working for your cash flow.

Let’s stop the bleed before it becomes a block. Get in touch with Pitchers Global today!