Capability template for supply chain and inventory

Slow-moving stock and markdown plan

Before a seasonal reset, the merchandiser or store owner gets one plan from the sales and stock exports: each item's sell-through and weeks of cover, the cash tied up in dead and slow stock, and a markdown plan in dated steps with the margin each leaves and a date to stop. The owner decides every price.

The outcome

The end of a season stops being a guess about what to discount and by how much. Every item is placed in one group: dead, slow, on track, too new to judge, or a line you are keeping that holds far more than it sells. Each line shows its sell-through, its weekly sales rate, how many weeks the stock on hand would last, and the cash at cost sitting in it, so the money is visible before anyone talks about percentages.

For every dead or slow item that has to be gone by the reset, the plan lays out the markdown in steps: the date of each step, the new price, the margin it leaves per unit and in per cent, and the margin if every unit sold at that price. No step goes below the margin floor you set, and no step is dated after the stop date, so the last price has time to work before the new range arrives.

Each step after the first comes with a plain check: how many units must have sold since the first markdown by that date. If that many or more have sold, the price holds. If fewer have, the next step is taken. Nobody has to argue about whether the scarves are moving.

The owner approves, changes or holds each item's plan. The AI assistant prepares the figures; it never touches a price in the store.

Who starts the work, and when

The merchandiser, the buyer or the store owner runs it four to ten weeks before the reset, straight after exporting sales and stock for the season. The same person runs it again on each check date with the units sold since the first markdown, to see which steps to take.

The owner, or whoever decides prices, reads the plan, answers its questions and decides each item separately. Approving the plan for one line and holding another is normal.

What they supply

  • A sales export: for each item, units sold over the season so far and over the last four weeks.
  • A stock export: for each item, units on hand, unit cost, full price, the date it first arrived, and whether it is to be cleared by the reset or kept in the range.
  • The settings: the stock count date, the reset date, the first markdown date, who decides, and the store's numbers for markdown steps, the margin floor, how close to the reset markdowns stop, and how much cover a kept line may hold.
  • Notes: items already on markdown, items the owner does not want marked down, and anything else the merchandiser knows.

The export's column headers are checked first. If one does not match, the work stops and asks which column is which.

What comes out

One plan in a fixed order: a summary of the cash tied up in dead, slow and overstocked lines, the data checks, each group of items with its figures, the markdown plans with an approval line on each, and a numbered list of questions for the owner. A group with nothing in it says "None."

The plan makes no forecast of how many extra units a lower price will sell. It shows what each price leaves in margin and when to check, and the owner chooses. Lines that stay in the range get no markdown; they arrive as questions, with the stock and cash above the limit, because what to do with them is a buying decision as much as a pricing one.

A good plan can be checked line by line against the exports, and the owner can decide it in one sitting.

An invented example

Illustrative example with invented data. The store, the products, the sales, the costs, the prices and every date below are invented. The store is an invented winter accessories and homeware shop that sells online and from one shop front, called the Store here. Its merchandiser runs the plan two months before the spring range goes out, and its owner decides every price change. People are referred to by role.

The inputs come first, in full, so the template can be run on them. The plan follows.

The inputs

1. Settings (typed by the merchandiser)

Store: the Store
Stock counted: end of Sunday 3 January 2027
Today: Monday 4 January 2027
Reset: Monday 1 March 2027 (spring range goes out)
Sales period: Monday 5 October 2026 to Sunday 3 January 2027
Decides: the owner
Currency: US dollars
New-item window: 30 days
Markdown steps: 20%, 35%, 50% off the full price
Margin floor: 10%
Cover limit for kept lines: 26 weeks

2. Stock export (as of the end of Sunday 3 January 2027)

sku,product,on_hand,unit_cost,price,first_received,after_reset
HAT-01,Wool beanie,140,6.00,24.00,2026-10-05,clear
SCF-02,Cashmere-blend scarf,96,18.00,59.00,2026-10-05,clear
GLV-03,Touchscreen gloves,60,7.50,19.00,2026-10-05,clear
CND-04,Pine candle,75,9.00,16.00,2026-10-19,clear
MUG-05,Stoneware mug,220,4.00,14.00,2026-03-02,keep
THR-06,Knitted throw,30,32.00,89.00,2026-12-14,clear
ORN-07,Glass ornament set,0,5.50,18.00,2026-10-19,clear
TEA-08,Winter spice tea tin,40,5.00,12.00,2026-06-01,keep

3. Sales export (Monday 5 October 2026 to Sunday 3 January 2027)

sku,sold_in_period,sold_last_4_weeks
HAT-01,210,48
SCF-02,34,6
GLV-03,150,40
CND-04,45,0
MUG-05,120,20
THR-06,6,6
ORN-07,64,9
SOCK-09,18,4

4. Notes (typed by the merchandiser)

- Nothing is on markdown at the moment; every price above is full price.
- No promotions are booked before the reset.

The output

SLOW-MOVING STOCK AND MARKDOWN PLAN: the Store, stock counted Sunday 3 January 2027

  • For: the owner. Prepared Monday 4 January 2027 from: sales export (Monday 5 October 2026 to Sunday 3 January 2027, 8 rows), stock export (8 items), settings, notes.
  • Column check: all headers matched.
  • Dates: reset Monday 1 March 2027, 8.1 weeks after the count. First markdown Monday 11 January 2027, 7.0 weeks before the reset, so steps are 2 weeks apart. Stop date Monday 15 February 2027.
  • Settings: new-item window 30 days; markdown steps 20%, 35%, 50% off the full price; deeper start below 40% projected sell-through; margin floor 10%; stop 14 days before the reset; cover limit for kept lines 26 weeks. Defaults used: first markdown date, deeper-start line, stop gap.
  • Summary: cash tied up at cost: dead stock $875.00 (2 items), slow stock $2,568.00 (2 items), kept lines $360.00 above the cover limit (1 item). Markdown plans: 3 items, 311 units, $3,243.00 at cost. On track: 1. Too new to judge: 1. Left out by the data checks: 1. No stock, not listed: 1.

Data checks

  • SOCK-09 is in the sales export (18 sold in the period, 4 in the last 4 weeks) and not in the stock export. Left out of the plan; see question 1.
  • TEA-08 has no row in the sales export. Read as no sales; see question 2.
  • ORN-07 has none on hand. Not listed.

Dead stock

  • CND-04 Pine candle (clear). First received Monday 19 October 2026 (10 weeks). Sold in the period 45; none in the last 4 weeks. On hand 75. Sell-through 37.5%. Cash at cost: 75 × $9.00 = $675.00. Markdown plan below.
  • TEA-08 Winter spice tea tin (keep). First received Monday 1 June 2026 (30 weeks). Sold in the period 0; none in the last 4 weeks; no row in the sales export. On hand 40. Sell-through 0.0%. Cash at cost: 40 × $5.00 = $200.00. Kept after the reset: no markdown planned (question 2).

Slow stock

  • SCF-02 Cashmere-blend scarf (clear). First received Monday 5 October 2026 (12 weeks). Sold in the period 34; last 4 weeks 6 = 1.50/week. On hand 96. Sell-through 26.2%. Weeks of cover 64.0, against 8.1 weeks to the reset. By the reset at this pace: 12 sold, 84 left, sell-through 35.4%. Cash at cost: 96 × $18.00 = $1,728.00. Markdown plan below.
  • HAT-01 Wool beanie (clear). First received Monday 5 October 2026 (12 weeks). Sold in the period 210; last 4 weeks 48 = 12.00/week. On hand 140. Sell-through 60.0%. Weeks of cover 11.7, against 8.1 weeks to the reset. By the reset at this pace: 97 sold, 43 left, sell-through 87.7%. Cash at cost: 140 × $6.00 = $840.00. Markdown plan below.

Kept lines above the cover limit

  • MUG-05 Stoneware mug (keep). Sold in the period 120; last 4 weeks 20 = 5.00/week. On hand 220. Sell-through 35.3%. Weeks of cover 44.0, above 26. Units within the limit: 130 (5.00 × 26 = 130.00, rounded up); above it: 90 × $4.00 = $360.00. Cash at cost in the item: $880.00. No markdown planned (question 3).

On track

  • GLV-03 Touchscreen gloves (clear). Last 4 weeks 40 = 10.00/week. On hand 60. Sell-through 71.4%. Weeks of cover 6.0, against 8.1 weeks to the reset; by the reset at this pace: 60 sold, 0 left.

Too new to judge

  • THR-06 Knitted throw (clear). First received Monday 14 December 2026 (20 days before the count). Sold so far 6; on hand 30. Not judged. Can be judged from Wednesday 13 January 2027.

Markdown plans

Largest cash at cost first. Prices are the full price less the step's percentage, to the cent. A step after the first is taken only if fewer units than its check figure have sold since the first markdown; otherwise the current price holds, the step and those after it move to the next check, 2 weeks later, with the check figure worked out again for the new date, and none is taken after the stop date. No forecast of extra sales is made.

SCF-02 Cashmere-blend scarf. Full price $59.00, unit cost $18.00: margin $41.00 a unit (69.5%). Floor price $20.00 (10% margin). Starts at the second markdown percentage, 35%: projected sell-through 35.4% is below 40%. Pace to clear by the reset: 96 ÷ 7.0 weeks = 13.71 a week, against 1.50 a week now.

  • Step 1, Monday 11 January 2027: 35% off, $38.35. Margin $20.35 a unit (53.1%); if all 96 sold at this price, $1,953.60.
  • Step 2, Monday 25 January 2027: 50% off, $29.50. Take it if fewer than 28 have sold since Monday 11 January 2027. Margin $11.50 a unit (39.0%); if all 96 sold at this price, $1,104.00.
  • No further step: the markdown steps are used up.
  • Stop date Monday 15 February 2027: no markdown after it. Prices hold until the reset on Monday 1 March 2027; what is left then is your choice (question 5).
  • Owner's decision (approve / change / hold): ______________ Date: ________

HAT-01 Wool beanie. Full price $24.00, unit cost $6.00: margin $18.00 a unit (75.0%). Floor price $6.67 (10% margin). Pace to clear by the reset: 140 ÷ 7.0 weeks = 20.00 a week, against 12.00 a week now.

  • Step 1, Monday 11 January 2027: 20% off, $19.20. Margin $13.20 a unit (68.8%); if all 140 sold at this price, $1,848.00.
  • Step 2, Monday 25 January 2027: 35% off, $15.60. Take it if fewer than 40 have sold since Monday 11 January 2027. Margin $9.60 a unit (61.5%); if all 140 sold at this price, $1,344.00.
  • Step 3, Monday 8 February 2027: 50% off, $12.00. Take it if fewer than 80 have sold since Monday 11 January 2027. Margin $6.00 a unit (50.0%); if all 140 sold at this price, $840.00.
  • No further step: the markdown steps are used up.
  • Stop date Monday 15 February 2027: no markdown after it. Prices hold until the reset on Monday 1 March 2027; what is left then is your choice (question 5).
  • Owner's decision (approve / change / hold): ______________ Date: ________

CND-04 Pine candle. Full price $16.00, unit cost $9.00: margin $7.00 a unit (43.8%). Floor price $10.00 (10% margin). Starts at the second markdown percentage, 35%: dead stock. Pace to clear by the reset: 75 ÷ 7.0 weeks = 10.71 a week, against 0.00 a week now.

  • Step 1, Monday 11 January 2027: 35% off, $10.40. Margin $1.40 a unit (13.5%); if all 75 sold at this price, $105.00.
  • Step 2, Monday 25 January 2027: 37.5% off, $10.00, at the floor. Take it if fewer than 22 have sold since Monday 11 January 2027. Margin $1.00 a unit (10.0%); if all 75 sold at this price, $75.00.
  • No step after the floor.
  • Stop date Monday 15 February 2027: no markdown after it. Prices hold until the reset on Monday 1 March 2027; what is left then is your choice (question 5).
  • Owner's decision (approve / change / hold): ______________ Date: ________

Questions for the owner

  1. SOCK-09 sold 18 in the period and 4 in the last 4 weeks, but has no row in the stock export. Which product is it, how many are on hand, and should it be in the stock export?
  2. TEA-08, Winter spice tea tin, stays in the range after the reset. It has no sales in the period and no row in the sales export, with 40 on hand, $200.00 at cost. Is it on sale? What do you want done with it?
  3. MUG-05, Stoneware mug, stays in the range after the reset. It holds 44.0 weeks of cover against a 26-week limit: 90 units, $360.00 at cost, above the limit, and $880.00 in the whole item. What do you want done with the extra stock?
  4. THR-06, Knitted throw, is to clear by the reset but arrived 20 days before the count: 6 sold so far, 30 on hand. It can be judged from Wednesday 13 January 2027. Do you want it judged then?
  5. At the current pace, SCF-02 would have 84 units left at the reset, HAT-01 43 and CND-04 75. After the stop date, Monday 15 February 2027, prices hold until the reset on Monday 1 March 2027. Any units still left then need a decision: hold for next season, return to the supplier where the terms allow it, bundle with a line that sells, sell to a clearance buyer, or donate. Which do you want for each?

Draft for the owner's decision. No price has been changed and nothing has been published or sent. Each price change is made by a person, on its date, after the owner approves it.

Where it fits

  • Supply chain and inventory: sell-through, weeks of cover and the cash held in stock, worked from the store's own exports.
  • Analytics and reporting: one fixed view of the range before each reset, the same every season, whoever runs it.
  • E-commerce and retail: online and physical stores with seasonal ranges, where last season's stock takes the space and cash the next one needs.
  • Consumer brands: brands selling their own products, clearing a season's colors and styles before the next drop.
  • Established businesses: when markdowns have always been set by feel and the margin they give away is never counted.
  • Growth and scaling: when the range has grown past what the owner can review item by item from memory.

It sits beside the inventory reorder plan, which decides what to buy; this plan decides how to clear what has not sold. Raising list prices is the price change review, a separate piece of work. The store facts file records who decides prices.

What has to change for your company

  • Your export's column headers, set once so the check passes without a question.
  • Your numbers: the markdown steps, the margin floor, how many days before the reset markdowns stop, the new-item window and the cover limit for kept lines, perhaps different by category.
  • Your price endings, if prices must end in .99 or .95, with the margins rechecked at the rounded price.
  • Who decides prices, and whether a markdown deeper than a set percentage needs a second person.
  • Your end-of-line choices: whether suppliers take returns, whether you sell to clearance buyers, and where you donate.
  • Your AI product. It runs in ChatGPT, Claude, Copilot or Gemini from the exports and notes you supply. It needs no connection to your store system, changes no prices and never asks for a password.

What has been checked

Fully Powered AI wrote this capability template in its own words, drawing on two published retail methods credited with it. It was editorially reviewed on 10 November 2026. It was tried once on its invented example in Claude on 10 November 2026, and the record of that run is published with the template; it lists the edits made afterward, which clarify wording the run had to interpret and have not been run again. It has not yet been tested in a client environment. It has not yet been tested as a packaged version in ChatGPT, Claude, Copilot or Gemini.

Testing in your environment means running it on a past season your merchandiser remembers well, plus hard cases written in advance, each with its expected behavior: an export with a renamed column, an item that stopped selling a month ago, a step that would fall below the margin floor, a kept line with half a year of stock, an item that arrived last week. The merchandiser checks every price and margin against the exports before the owner decides. Pilot acceptance-test preparation builds that test set, and What we test before we call an AI workflow ready shows the record.

The full capability template

Everything above is the outline. The complete capability template is the working version: the roles, the inputs, the procedure, the exceptions and stop conditions, the output format, the reviewer checklist, the acceptance tests, the instructions for an AI assistant and what to customize for your company. It comes with a download and the link to its folder in Fully Powered’s public repository.

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Talk with us Discuss adapting this

  • Inventory reorder plan

    The store owner or buyer gets one plan from the latest sales and stock exports: each item's sales rate, the day it could run out, its reorder point and safety stock, what to order, what is not moving, and a draft purchase order per supplier. Nothing is ordered until a person approves.

  • Price change review

    Before prices change, the owner or finance lead gets one review: the margin on each product or service from the sales and cost exports, how costs have moved, what each proposed price does to sales and gross profit across a stated range of customer responses, and dated competitor prices. It recommends no price.

  • Store facts file

    The person who runs an online store builds the one file every other store capability reads first: what the store sells, the facts each product page should state, the statements it stands behind, buyers' questions, policies, roles and access. Nothing on the store is changed.

  • Pilot acceptance-test preparation

    Go into every AI pilot with the test already written: the cases that matter, what good looks like for each and the rule your owner will use to decide.