Inventory Optimisation
We right size stock across raw, work in progress and finished goods using ABC and XYZ classification and service level driven safety stock
Inventory
Optimisation
Our team right sizes the inventory you hold across raw materials, work in progress and finished goods. We classify items by value and by demand variability through ABC and XYZ analysis, study how demand and supply actually behave, and set safety stock to the service level your customers need rather than to habit. We then design policies that fit each class of item, whether that is a reorder point, an economic order quantity, a min max rule or vendor managed inventory, and we build in a quarterly refresh so the policies stay true as your business moves.
Our implementation model
A practical, phased delivery approach that runs from gap assessment through operational embedding and is built around your regulatory context.
Quantify inventory levels by category (raw / WIP / finished), value, turnover, ABC / XYZ classification.
Analyse demand variability, supply lead time, lead time variability, calculate safety stock requirements per service level target.
Design inventory policies per item class, reorder point, EOQ, min max, ROP OUT, vendor managed inventory.
Integrate inventory policy with Sales & Operations Planning, demand forecasting, supply planning, production scheduling.
Track inventory turns, days of inventory, stockout rate, obsolete inventory, benchmark against industry quartile.
Quarterly inventory review, annual policy refresh, integration with strategic planning and working capital management.
Inventory in full scope
Value of Inventory Optimisation
- You hold less hazardous material on site
- Your warehouse density is better managed
- Obsolete and expired stock is reduced
- Your people spend less time handling stock and face less exposure
- Your policies follow recognised APICS discipline
- Your inventory records stand up to audit
- You meet Sarbanes Oxley inventory control expectations
- You can give customers and regulators the stock traceability they ask for
- Service levels are held or improved
- Inventory turns improve by one and a half to three times
- Obsolete inventory falls
- Operations move in step with sales and operations planning
- You free up twenty to forty percent of working capital
- Carrying costs come down
- You avoid obsolete stock write offs
- You release warehouse space
Codes & standards we work to
Triggers that signal the need
Where Inventory Optimisation applies
Wellheads, separators, gas compression, FPSO topsides, produced water systems.
Distillation columns, reactors, heat exchangers, storage spheres, LPG handling.
Cryogenic exchangers, liquefaction trains, BOG compressors, storage and sendout.
Reactive systems, batch reactors, solvent handling, runaway reaction scenarios.
Boilers, HRSGs, steam headers, hydrogen systems, ammonia SCR units.
Sterile vessels, CIP/SIP, pressure fermenters, solvent recovery, spray dryers.
Tangible deliverables
- An inventory baseline and classification
- A demand and supply variability report
- An inventory policy design
- A plan to integrate it into sales and operations planning
- A performance dashboard
- A quarterly review playbook
Ready to start your project?
Speak with our team to scope an engagement tailored to your facility, regulatory context, and lifecycle stage.