Designing a Financial Planning Framework for Managing SLOB and Write-Off Risk in Fast-Moving Consumer Goods (FMCG)

• Author(s): John Oluwaseun Olajide ; Bisayo Oluwatosin Otokiti ; Sharon Nwani ; Adebanji Samuel Ogunmokun ; Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha
• Paper ID: 1709016
• Page: 259-266
• Published Date: 31-10-2020
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 4 October-2020

Abstract

Managing Slow-Moving and Obsolete Inventory (SLOB) and write-off risks poses significant financial challenges for Fast-Moving Consumer Goods (FMCG) companies due to their high-volume, rapid turnover nature. This paper presents a comprehensive financial planning framework designed to address these risks by integrating inventory management practices with financial risk assessment and mitigation strategies. Utilizing a mixed methods research design, the study combines quantitative analysis of inventory and financial data with qualitative insights from industry experts to develop a practical, adaptable framework. Key components include systematic identification and categorization of SLOB items, using financial metrics and KPIs for ongoing risk monitoring, and implementing targeted inventory optimization and write-off prevention techniques. The framework further emphasizes seamless integration into existing financial planning cycles and continuous improvement through real-time monitoring and feedback. Practical implications for FMCG firms highlight improved financial decision-making, reduced capital lockup, and enhanced operational resilience. Finally, the paper outlines future research opportunities including the application of advanced analytics and customization for diverse market contexts. This framework offers a robust tool for FMCG companies aiming to manage inventory risks and safeguard financial performance proactively.

Keywords

Slow-Moving and Obsolete Inventory (SLOB), Write-Off Risk, Financial Planning Framework, Inventory Management, Fast-Moving Consumer Goods (FMCG), Risk Mitigation Strategies

Citations

IRE Journals:
John Oluwaseun Olajide , Bisayo Oluwatosin Otokiti , Sharon Nwani , Adebanji Samuel Ogunmokun , Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha "Designing a Financial Planning Framework for Managing SLOB and Write-Off Risk in Fast-Moving Consumer Goods (FMCG)" Iconic Research And Engineering Journals Volume 4 Issue 4 2020 Page 259-266

IEEE:
John Oluwaseun Olajide , Bisayo Oluwatosin Otokiti , Sharon Nwani , Adebanji Samuel Ogunmokun , Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha "Designing a Financial Planning Framework for Managing SLOB and Write-Off Risk in Fast-Moving Consumer Goods (FMCG)" Iconic Research And Engineering Journals, 4(4)