Stock Pro — Inventory Optimization & Working-Capital Intelligence

Excess stock burns cash. Stockouts burn customers. Stock Pro turns inventory into an engine for profit and liquidity by aligning demand, supply, and capital—SKU by SKU, site by site. We combine advanced analytics with configurable replenishment logic (ROP, EOQ, DDMRP, Kanban) to set the right stock, in the right place, at the right time—with full traceability.

Business Challenges We Solve

Excess Working Capital: Too much tied up in slow/obsolete SKUs; weak cash conversion.
Stockouts on Heroes: Lost sales and margin leakage on top sellers due to poor safety-stock math.
Static Rules & Exceptions: Min/max tables that break with seasonality, promotions, or lead-time volatility.
Fragmented Visibility: Multiple warehouses/stores, no unified view of health, risk, and priorities.
Unreliable Vendors: Variable lead times and fill rates that aren’t modeled into reorder logic.
Hidden Carrying Costs: Warehousing, insurance, shrink/obsolescence not priced into decisions.

What to Expect

Configurable Replenishment Engine: ROP/EOQ, DDMRP buffers, Kanban loops, multi-echelon rules.
Demand & Seasonality Modeling: Baseline, trend, promo, outlier cleaning, ABC/XYZ classification.
Service-Level Targets by Segment: Safety stock tied to variability, lead time, and business criticality.
Vendor & Lead-Time Analytics: Reliability, variability, OTIF, and SLA-based reorder adjustments.
Role-Based Alerts: Stockout risk, excess/obsolete, low rotation, short shelf-life, MOQ/MOV conflicts.
Financial Lens: DIO, GMROI, gross margin dollars, carrying cost %, working-capital released.

Our Impact

15–30% Inventory Reduction without hurting service levels.
+2–6 pts Service Level on A/hero SKUs, fewer lost sales.
18–30% Carrying-Cost Savings (storage, insurance, shrink/aging).
Working Capital Released to fund growth, pricing, or debt reduction.

Stock Pro — Core Modules

Forecast & Classification
- Cleaned demand, seasonality, ABC/XYZ, intermittency handling.
Replenishment & Buffers
- Safety stock, reorder points, EOQ, DDMRP buffers by SKU/site/lead time.
Multi-Location Optimization
- Balancing between DC ↔ stores; inter-branch transfers; push/pull waves.
Vendor Reliability & SLA
- Lead-time variability, OTIF, MOQ/MOV optimization, cost-to-serve.
Risk & Opportunity Alerts
- Stockout risk horizon, excess/obsolete, nearing expiry, promo cover.
Financial Intelligence
- DIO, GMROI, margin at risk, carrying-cost tracker, cash unlocked.

Optional add-ons: Pulse Pro email alerts for daily KPI pushes (no dashboards to open), and FP&A linkage for budget/CCC impacts.

Our Blueprint

Diagnosis (Weeks 1–2)
Data audit (SKU/site, demand, costs, lead times), baseline KPIs (DIO, fill rate, GMROI), and opportunity sizing.
Design (Weeks 3–4)
Segmentation (ABC/XYZ), service targets, replenishment policy per segment (ROP/EOQ/DDMRP/Kanban), vendor SLAs.
Build & Parametrization (Weeks 5–7)
Configure buffers and reorder math by SKU/site; set alert limits; simulate scenarios (promos, vendor delays, seasonality).
Go-Live & Coaching (Weeks 8–10)
Controlled rollout, exception playbooks, Pulse Pro alerts, weekly S&OE reviews; governance to sustain results.

Case Example (Mid-Sized Retailer, Guatemala) to Expect

Context

Context
- Monthly sales: $500,000
- Inventory on hand: $1,200,000
- Current DIO: 72 days
- Stockouts on top SKUs: 5–6% lost sales in peak weeks
- Carrying cost: 20% annual (~1.67% per month)
- Vendors: lead times vary 7–21 days, MOQ requirements, low OTIF
What we changed with Stock Pro
- Segmented SKUs into ABC/XYZ, aligning service levels:
  - A: 98–99%
  - B: 95–97%
  - C: 90–92%
- Applied buffer logic: DDMRP buffers for A/volatile, EOQ for stable B, lean policies for C.
- Modeled vendor reliability → adjusted safety stock dynamically.
- Introduced inter-store transfers to rebalance surpluses.
- Deployed exception-based alerts: stockouts at risk, excess >30 days, vendor delays.
Results after 3 months
1. Inventory Reduction
  - DIO dropped from 72 → 60 days.
  - Inventory reduced by ~$200,000.
  → Financial benefit:
  - Carrying cost savings: $200,000 × 1.67% = $3,340/month
  - Working capital freed: $200,000 × 0.83% = $1,660/month
  - Total cash impact: $5,000/month
2. Sales Increase
  - Service level A SKUs improved +4 pts.
  - Lost sales recovered ≈ 2% uplift on $500,000.
  - +$10,000/month in revenue, at 30% margin = +$3,000 EBITDA/month.
3. Operational Efficiency
  - Buyers saved ~40 hours/month (≈0.25 FTE).
  - Analyst equivalent: $800/month in capacity freed.
Total Monthly Impact
- Cash & carrying cost: $5,000
- EBITDA uplift: $3,000
- Efficiency gain: $800
→ ROI: $8,800/month

Why Clients Choose Stock Pro

- Configurable, not brittle: multiple methods in one engine (ROP/EOQ/DDMRP/Kanban).
- Traceable decisions: every buffer/ROP is documented and auditable.
- Built for volatility: seasonality, promos, unreliable supply are modeled—not “exceptions.”
- Capital-first: policies optimized to service + cash, not just units.