The challenge
The company held high inventory levels, but the stock mix did not match sales needs. Some products tied up cash and warehouse space while other categories faced shortages. Simply reducing purchasing could therefore make sales more difficult.
Our actions
We proposed a review based on inventory turnover, stock age and actual demand. We separated products requiring regular replenishment from excess and slow-moving stock.
The change plan covered:
- aligning purchase quantities and frequency with sales,
- setting stock levels for individual product categories,
- preparing sales initiatives for excess inventory,
- introducing KPIs for turnover, availability and stock age,
- regular joint reviews by purchasing, sales and logistics.
The impact we measure
The goal is to release capital tied up in excess stock while maintaining availability of the products customers need. We assess inventory levels, sales and product availability together.
A full warehouse does not always mean good availability. What matters is having the right products in the right quantities.