Inventory optimisation for a technology services business
PTL Co identified substantial spare-parts inventory reduction potential while protecting critical service availability and customer support.
THE CHALLENGE
Releasing working capital while protecting service
Client
Technical supply and maintenance
Sector
IT services
Scale
£5m spare parts inventory, 132 forward stock locations
Engagement
Inventory optimisation
PTL Co identified substantial inventory reduction potential for a technology services business, reviewing a £5.3m inventory baseline across 132 stock locations and modelling a £1.0m final target while protecting service availability. Different parts carried different demand patterns, service importance and replacement risks, so a simple across-the-board reduction would have been inappropriate. Existing stocking decisions needed to be tested against actual usage, variability and customer commitments. The client required a segmented, evidence-based assessment that could distinguish excess stock from inventory genuinely required to maintain service. Any potential reduction also had to remain conditional on revised policies, controls and ongoing management rather than being presented as an immediate achieved saving.
£5.3m
inventory baseline
£1m
final modelled target
132
forward stock locations
98%
low velocity parts
WHAT WE DID
Delivery framework
PTL Co segmented the spare-parts inventory, analysed demand behaviour and tested existing stock policies against service requirements across multiple locations. The work distinguished low-velocity excess from critical support stock, then modelled reduction scenarios so that working-capital opportunity could be considered alongside customer availability and implementation controls. This helped the client avoid an indiscriminate stock reduction exercise and instead focus on where policy, ownership and revised controls could release value without weakening essential service commitments.
1. SEGMENT INVENTORY
Classify the spare-parts portfolio by usage, velocity, service importance and location to identify different stocking behaviours.
2. ANALYSE DEMAND
Assess usage and variability so genuine service requirements could be separated from slow-moving or excess inventory.
3. REVIEW POLICY
Test current stocking rules against actual demand, replacement risk and customer availability expectations.
4. SET SERVICE NEEDS
Align availability with customer support requirements so proposed reductions did not undermine critical service cover.
5. MODEL SCENARIOS
Quantify reduction opportunities and show the policy conditions needed to release working capital safely.
WHAT WE ACHIEVED
Outcomes delivered
The client gained a quantified spare-parts inventory opportunity and a clearer understanding of the policy changes needed to release working capital safely. The analysis showed where reductions were possible without weakening critical service cover, while making clear that benefits depended on revised controls, ownership and ongoing management. It also gave the business a more defensible basis for challenging stockholding decisions across locations, because reduction opportunities were linked to demand evidence and service importance rather than broad cost-cutting targets.
Substantial reduction potential.
More than £1.5 million of potential inventory reduction was identified by comparing existing stock levels with modelled requirements across the £5.3m spare-parts baseline and 132 reviewed locations.
Lower working capital opportunity.
The model indicated a reduction of around one quarter, giving the client a quantified view of how much capital could potentially be released without treating every part or location in the same way.
Service protection.
Scenarios retained critical availability requirements by separating essential support stock from low-velocity excess, ensuring reductions were linked to demand evidence and customer service importance.
Implementation conditions.
Benefits remained subject to revised policies, clearer ownership and stronger review controls, so the reduction opportunity could be managed over time rather than treated as a one-off stock cut.
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