Turtle Limited: Excess Inventory Challenge
In May 2018, Shitanshu Jhunjhunwalla, Director of Turtle Limited, reviewed operational data that indicated rising inventory levels across the company’s retail network. Turtle, a Kolkata- based men’s apparel brand, had expanded its presence through exclusive brand outlets (EBOs), multi-brand outlets (MBOs), and large format outlets (LFOs). While this expansion increased market reach, store-level data showed variation in sales performance across formats and regions, with inventory accumulation observed in several locations. Turtle’s production system was based on annual demand projections, with manufacturing decisions taken well in advance of the selling season. This resulted in long design-to-store lead times and large production volumes per design. A portion of inventory remained unsold at the end of the season and was either carried forward or sold through discounted channels, affecting inventory turnover and the stock-to-cash cycle.
At the same time, the brand had relatively higher awareness in eastern India compared to other regions, and differences in regional demand patterns were evident. The company also operated within a supply chain structure characterized by minimum order quantities, multiple sourcing locations, and limited in-season responsiveness. With a board review approaching, Shitanshu had to evaluate alternative approaches to align production, distribution, and market demand, while considering the implications for channel strategy, inventory management, and future growth.