Inventory how-to

How to plan inventory purchases around cash flow

Plan purchases by the date you need to pay, not just the date you need stock.

Short answer: Plan purchases by the date you need to pay, not just the date you need stock. Rank orders by how much cash they tie up and how soon they will sell through, then stagger order dates so you are not paying several suppliers in the same week.

Start from your cash calendar, not your stock calendar

Inventory planning usually starts with "when will I run out." For cash flow you need a second view: "when do I have to pay for this." List upcoming purchase orders by payment due date, including any deposits. Line that up against money coming in from sales and any other bills due the same week. If two big restocks land on the same date, that is the problem to fix first, not a surprise to discover later.

Order smaller and more often for cash-hungry SKUs

Ordering six months of stock in one go looks efficient on paper but locks up cash and raises the risk of markdowns if demand shifts. For your top sellers, ordering closer to your real sales rate in smaller, more frequent batches keeps cash moving and still avoids stockouts, as long as your supplier's lead time and minimum order quantity allow it. Reserve the large, infrequent orders for items with long lead times or steep case-pack discounts where the math clearly favors buying more at once.

Rank products by cash tied up versus speed of return

Not all inventory deserves the same cash priority. A slow-moving SKU that costs a lot per unit ties up cash for a long time. A cheap fast seller returns cash quickly even if the order is large. When cash is tight, delay or shrink orders for the first group before you touch the second. Reviewing cost per unit alongside sell-through speed, not just reorder point, tells you which orders can safely wait a week or two.

Use supplier terms and partial orders deliberately

If a supplier offers payment terms, use them to shift the payment date closer to when the stock actually starts selling. If a supplier allows split shipments, ordering in two partial batches can spread the cash outlay even if the total order size stays the same. Always check this against the lead time, since splitting an order can also mean the second batch arrives later than planned.

Step by step

  1. List every open and upcoming purchase order with its payment due date
  2. Overlay that list against expected income for the same weeks
  3. Flag any week where total payments due exceed expected cash on hand
  4. For flagged weeks, identify which orders can be delayed, shrunk, or split without causing a stockout
  5. Reorder fast, cheap sellers in smaller batches more often to free up cash
  6. Reorder slow, expensive items less often and only at the quantity you can justify selling through
  7. Recheck the calendar after each approval so the picture stays current

Worked example

A store has two draft purchase orders: Supplier A for $4,000 due on the 10th, and Supplier B for $3,500 due on the 12th. Expected income for that period is $5,000. Paying both on time would leave the store $2,500 short. The owner checks Supplier B's terms, confirms a 15-day payment window instead of due-on-delivery, and pushes that payment to the 25th. This spreads the $7,500 in outgoing cash across two pay periods instead of one.

How SteadyShelf helps

SteadyShelf tells you the order-by date and suggested quantity per SKU based on lead time, safety days, and case packs, which helps you see purchases coming before they become urgent. It does not track your bank balance, income, or payment terms, so matching order dates against actual cash on hand is still a manual step you do outside the app.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

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FAQ

Should I always take the maximum discount for buying in bulk?

Only if the cash saved on unit cost is worth more than the cash tied up until it sells. Compare the discount amount to how many extra weeks or months the stock will sit before it turns into revenue, and skip the discount if that gap is long.

What is the safest way to free up cash fast when a big order is due?

Look first at orders for slow-moving or overstocked SKUs and delay or shrink those rather than touching your fast sellers. Running out of a top seller costs you sales now, while delaying a slow mover usually just means living with current stock a bit longer.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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