💰My Stock Value is Too High
Your Optiply dashboard prominently displays the optimised value of your inventory: The Stock Value.
While having stock is necessary to make sales, an unnecessarily high stock value means your vital working capital is tied up in your warehouse. If your stock value feels too high, it is usually a sign that your settings are forcing the algorithm to be overly cautious, or your daily workflow is deviating from the system's advice.
Here are the most common causes and the exact adjustments you can make in Optiply to reduce your stock value.
🛑 1. Key Takeaways: How to Lower Your Stock Value
If you want to lean out your inventory, review these core areas of your purchasing strategy:
Factor 1: Supplier Constraints (MOQs & Lot Sizes)
Suppliers often dictate how you buy. However, if their rules are too strict, you pay the price in deadstock.
Decrease MOQ: A massive 'Minimum Order Quantity' forces Optiply to buy months of unnecessary stock just to meet the vendor's minimum. Negotiate lower MOQs where possible!
Decrease Lot Size: Similarly, a large lot size (e.g., having to buy in pallets of 500) means rounding up your purchase advice dramatically.
Factor 2: Ordering Rhythms & Delivery Times
Order More Often: To order more frequently, you need to reduce your Order Period. Regular, smaller orders result in a significantly lower baseline stock, drastically reducing your overall stock value. (This is especially effective for your largest suppliers).
Check Set Delivery Times: If your Set Lead Time in Optiply is much higher than reality, the system buys excessive buffer stock to survive the "wait." Compare your settings against Optiply's 'Measured Delivery Time' tool to see if you can safely shorten the lead times.
Factor 3: Desired Service Levels
The higher your service levels, the more safety stock the system buys. If your stock value is ballooning, your service levels may be set higher than our recommended defaults.
The Fix: Navigate to your ABC-XYZ settings and ensure your categories align closely with Optiply's default best practices:
Category | Gross Margin | Service Level |
A | 70% | 99% |
B | 25% | 95% |
C | 5% | 90% |
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Factor 4: Trusting the Automation & Agenda
Follow the Order Agenda: It is extremely important that the purchasing planning is strictly followed. If you skip order days, the system has to compensate later, which can throw off your stock value.
Stop Adjusting Advice Upwards: If you constantly manually increase the recommended quantities on the Purchase Page out of "gut feeling," you will artificially inflate your stock. Follow the given order advice, and your stock value will automatically decrease to optimised levels.
Factor 5: Receiving Errors (Bookings Too Low)
Mistakes happen in the warehouse! If your team physically receives 100 units but accidentally only "books in" 50 units in your source system, Optiply thinks you are still missing stock. It will continue to give order advice for items you already have, leading to a massive buildup of hidden inventory.
❓ 2. Frequently Asked Questions (FAQs)
Where can I see my current Stock Value?
Your total optimised stock value is displayed prominently on your main Home dashboard in Optiply, giving you a real-time overview of your tied-up capital.
What is the 'Measured Delivery Time'?
This is a helpful metric where Optiply tracks exactly how long your supplier actually takes to deliver goods, based on your historical purchase orders. Comparing this measured time to your manual Set Lead Time is the easiest way to catch bloated delivery settings.
Is it safe to lower my 'C' category service level even more?
Yes! 'C' category items generate the lowest margins and tie up the most space. Many businesses safely lower their 'C' service levels to 85% or even 80% to aggressively reduce their stock value, accepting that occasional stockouts on these slow-movers are worth the financial savings.