More gross profit
- You see shortages coming before your best sellers sell out. That means no missed revenue on the products that earn the most.
- Stock is often financed with borrowed money. At ETQ and TOV that runs through a credit line, so every euro of excess stock costs interest. Together they hold €4.5 million in stock. At 5% interest, every €100,000 of excess stock costs €5,000 a year, before storage and markdowns.
- Less stock also means less storage, at your fulfillment partner and in your own space. You don't reorder what isn't moving, so less ends up marked down.
- Promotions on idle stock get a floor at cost price. You free up cash without selling below cost.

