Seasonal fruit, dates, nuts and food trading can show attractive gross margins while still creating cash pressure. Inventory arrives in large lots, selling periods can be short, customers may receive credit and price can move before the stock is fully cleared. Working capital therefore needs the same attention as sales.
Management should connect buying decisions with expected stock days, customer credit, payment timing, storage cost and downside-price scenarios. A purchase that looks profitable on invoice margin may become weak after financing, shrinkage, slow movement and discounting are included.
Make cash visible by business unit
Daily bank movement is useful, but group-level cash alone can hide which unit is consuming liquidity. Unit-level stock, receivables, payables, gross margin and cash conversion should be reviewed together. This makes it easier to identify when one business is funding another unintentionally.
Working-capital discipline is not about buying less. It is about buying with a defined exit path. The objective is to keep the group liquid enough to capture good opportunities without becoming dependent on continuously rising sales.