Cash release through inventory reduction
Release tied-up capital while ensuring delivery capacity and service levels.
Reduce inventory and free up cash without jeopardizing operations
Inventory issues are rarely just a warehousing problem. More often than not, they stem from planning systems, batch sizes, a lack of transparency, and process disruptions. A one-time reduction in inventory therefore often falls short. Our goal: to create fact-based transparency, establish a realistic reduction plan, and embed the management process in such a way that a V-shaped rebound does not occur. We support our clients every step of the way, from analysis to implementation, and help them free up cash quickly. Our approach: Fast. Comprehensive. Practical. Sustainable. Our consulting services combine quantitative transparency with operational implementation. We don’t just work with key metrics; we work with the underlying drivers. Planning parameters, ordering logic, bills of materials, material master data, roles, and control loops. We create a clean data foundation to serve as the basis for decision-making. This involves the structured processing of relevant inventory types, as well as the creation of a standardized view of plants, storage locations, and items. The results are validated in collaboration with the responsible parties to ensure that analysis directly translates into actionable insights and to foster acceptance across all levels of the organization. To convert inventory into cash potential, we link demand and upstream materials via bill of materials and derive stock coverage at the item level. This reveals where excess inventory exists, the extent of the reduction potential, and which items should be prioritized for immediate results. To manage the implementation, a reduction curve is simulated, and the achieved results are compared with the target curve during weekly Scrum meetings. To further reduce inventory and ensure sustainable safety margins, we need forecasts that are as accurate as possible. That is why, where appropriate, we implement a robust AI-based demand forecasting (or sensing) system and use it as a starting point for pull-based management and the further reduction of safety stock. This reduces inventory and shortens lead times without compromising service levels. We are developing an inventory management dashboard that tracks progress in reducing inventory and enables an agile approach to implementation. During weekly sprints, we monitor adjustments at the item level and make decisions. To prevent a V-shaped downturn, we are establishing clear leadership in our day-to-day operations in parallel with our inventory reduction efforts. We are defining responsibilities and ensuring that management and operational teams are aligned in their approach. Would you like to explore this topic further? Contact us to find out how we can work with you to free up tied-up capital and manage your portfolio sustainably — from ensuring transparency and defining a reduction strategy to implementing these measures within your organization.Integrated consulting approach
An Overview of Our Solutions
Transparency Regarding Inventory and Drivers
Identify Cash Potential from Excess Inventory
Identify specific needs and reduce safety stock
Integrating Inventory Management into Daily Operations
Ensure Implementation through Clear Roles and Control Loops
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Our Experts for Cash Flow Generation
