Why Cash Flow Issues Aren’t Just About Overbuying (And How to Fix Them) — Management One Inventory Planning

4 Ways to Free Up Cash (Without Cutting Corners)

Here’s what retailers can do—starting now—to turn inventory back into a cash-generating asset:

Buy Smarter, Not Just Less

Use data, not intuition. Refine your assortment by aligning purchases with historical performance, customer demand, and real-time sales insights. One retailer improved cash flow by 19% in a single quarter by doing just that—proof that smart inventory planning works.

Tip: Use rolling reforecasts every month to adjust your buying strategy in real time.

Liquidate With Purpose

Don’t let slow movers drain momentum. Implement proactive exit strategies like flash sales, bundles, or markdown cadences. The goal isn’t to discount everything—it’s to move inventory deliberately and consistently.

Tip: Use a rule-based trigger (e.g. 8 weeks of poor sell-through) to flag items for markdown or reallocation. Check out this inventory checklist to build your action plan.

Improve Inventory-to-Demand Alignment

Bridge the gap between merchandising and customer behavior. Weekly sell-through reviews, tighter coordination with marketing, and store-to-store transfers are just a few of the ways to keep inventory fluid and responsive.

Tip: Align your promotions with what’s in stock. You’ll avoid out-of-stock issues which hurt both your revenue and reputation.