Ep. 063 - How to Generate Cash
This podcast discusses how to generate cash by implementing smart inventory management.
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This episode talks about preserving the Cash Flow in the business by smartly managing the inventory.
Because the inventory level directly impacts the cash flow. Too much inventory means too much cash being locked in the form of products, limiting the business' ability to pay for overhead costs, such as salaries, and capital expenditures, such as buying new machines.
We will talk about two methods of managing inventory to preserve the cash: (1) Product Segmentation and (2) Safety Stock settings.
By understanding whether the product segmentation is strategic or non-strategic, we can apply the right inventory strategy that best serves the business.