A stock order spends cash months before the units sell. We set out what is committed, when each payment falls due and what happens to cash if sales come in slower than planned. The forecast is a working file you update, with its limits written on it.
Exhibit 4
Thirteen weeks of cash around one stock order
1
2
3
4
5
6
7
8
9
10
11
12
13
Opening balance
100
Low point, week 9
44
Floor
40
Week 13
78
The deposit leaves in week 4 and the balance in week 9, before the stock sells. The line marks the 40 floor.
Cash index, opening balance = 100. Illustrative plan for a fictional brand. Not client results.
What you get
A map of when suppliers get paid and when stock sells
A 13-week cash view, rebuilt as orders change
A base case and a what-if for the next big order
A short list of missing inputs and decisions due
What changes the price
1
Stock locations, purchase order process and supplier terms
2
Existing commitments and the reliability of inventory inputs
3
Sales assumptions, payout timing and operating commitments
4
How often you review, and how many orders you plan
What this isn’t
–
A guarantee of cash availability, margin or sales
–
Inventory purchasing or supplier negotiation on the client’s behalf
–
An operational inventory system or automated forecasting app
Next engagement
Fractional CFO support