Inventory itself isn’t the problem; it’s inventory that doesn’t turn that is.

When I first began my P&L leadership journey, I was simply following the standard approach: keep inventory lean. I sold off excess parts, wrote off all obsolete stuff and halted new orders, leaving the balance sheet spotless and my sales team frustrated.

Then, during a visit, the CEO reviewed my immaculate numbers and asked: "How much sales are you sacrificing by not having stock ready?" He reminded me: "You can’t sell from an empty wagon".

From then on, he challenged me to focus on maintaining inventory that turns, not on eliminating inventory altogether. Soon sales begun to climb.

In markets like Southeast Asia, where supply is abundant, goods availability is critical for successful entry or expansion. Don’t assume customers will wait for imports; inventory on the ground is essential to a winning strategy.

Provision for that and execute your growth strategy accordingly.