Inventory optimisation for a multi-site trade distribution business
PTL Co developed a more disciplined inventory model and policy to reduce working capital while protecting product availability across a multi-site network.
THE CHALLENGE
Reducing stock without weakening availability
Client
Multi-site trade distributor
Sector
Timber and building products
Scale
60 sites, £25.2m live stock
Engagement
Inventory optimisation
PTL Co helped a multi-site trade distribution business review £25.2m of live stock, identify an optimised target of £16.6m and quantify £8.6m of potential inventory reduction. The business needed to understand whether its current inventory policies were tying up excessive working capital across multiple sites and branches.
Existing stock targets were not dynamically linked to demand, product classification or service requirements, creating inconsistent decisions across the network. Different item behaviours, purchasing patterns and local stocking practices added further complexity. The client required a practical framework that could distinguish genuinely important stock from slower-moving or excess inventory without weakening customer availability. Any revised policy also needed to support branch-level use, provide clear purchasing controls and create an auditable basis for future inventory reviews and performance management.
£25.2m
live stock reviewed
£16.6m
optimised target
£8.6m
reduction
60
sites
WHAT WE DID
Delivery framework
PTL Co analysed stockholding, sales history, receipts, site-level demand behaviour and branch operating requirements to build a more disciplined inventory model. The work separated excess stock from inventory needed to protect availability, then converted the analysis into reorder parameters, scenario tests and governance controls that could be applied across a varied multi-site distribution network. This provided a practical bridge between central inventory policy and local branch realities, helping the business understand where stock could be challenged without undermining customer service.
1. REVIEW DATA
Analyse sales, receipts and stockholding to establish the actual inventory position and understand how stock moved through the branch network.
2. CLASSIFY PRODUCTS
Segment items by demand, value, service importance and behaviour so stocking decisions reflected different SKU roles rather than one blanket rule.
3. SET PARAMETERS
Calculate reorder points by SKU and site, linking suggested stock levels to demand patterns, replenishment needs and local availability requirements.
4. TEST SCENARIOS
Model inventory impacts and service trade-offs so reduction opportunities could be considered alongside the risk of weakening customer availability.
5. DEFINE CONTROLS
Set purchasing, review and governance rules to help the business maintain the optimised position after the initial analysis.
WHAT WE ACHIEVED
Outcomes delivered
The work gave the business a quantified view of reduction potential and a more controlled way to manage stock across branches. Instead of treating inventory reduction as a blunt working-capital exercise, the model showed where stock could be reduced, retained or managed differently according to demand behaviour, service importance and local operating needs. It also created a stronger basis for future purchasing decisions, giving the business clearer rules for maintaining availability while avoiding a gradual return to excess stock.
Reduction opportunity quantified.
Analysis established the potential inventory reduction available across the live range and separated realistic working-capital opportunity from stock required to protect availability.
Clearer reorder policies.
Stock decisions were linked to demand, branch requirements and service needs, reducing reliance on local judgement alone and creating a more consistent basis for replenishment.
Improved working capital control.
The framework supported more disciplined investment decisions by showing where stock could be reduced, retained or actively managed according to item behaviour and commercial importance.
Stronger governance.
Defined controls supported consistent future inventory management, including clearer review routines, purchasing rules and accountability for maintaining the optimised position.
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