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Inventory management

We design, deliver and implement inventory policies that maximise service and minimise tied up cash

INTRODUCTION

From inventory strategy to day-to-day control

Inventory management is the science of efficiently balancing inventory cost with product availability. There are a host of reasons why businesses have to hold inventory. Typically, most businesses hold inventory to ensure continued supply where demand and supply rates differ (known as a decoupling point).

Effective inventory management is about turning stock policy into consistent operational decisions. That means having clear processes for reviewing stock, managing replenishment, responding to exceptions and maintaining control as demand, supply and priorities change.

We help businesses establish the practical inventory management disciplines, responsibilities and routines needed to manage stock effectively on an ongoing basis.

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EFFECTIVE INVENTORY MANAGEMENT

What effective inventory management looks like

Effective inventory management depends on clear processes, consistent controls and timely decision-making. We help businesses establish the practical disciplines needed to manage stock effectively, maintain availability and respond to changing demand and supply conditions.

Stock review & exceptions management

Regular stock reviews help businesses identify shortages, excess inventory and emerging issues before they affect service or working capital. Clear exception processes ensure attention is focused where action is needed.

Replenishment & reorder controls

Effective replenishment requires clear rules around when stock should be reordered, how purchasing decisions are made and how changing demand or supply conditions are reflected in day-to-day decisions.

Slow-moving & excess stock

Without regular review, slow-moving and obsolete inventory can accumulate unnoticed. A structured management process helps identify excess stock early and supports appropriate action before it becomes a bigger problem.

Stock availability & shortages

Stockouts are not always caused by insufficient inventory. Poor visibility, inconsistent replenishment and delayed intervention can all affect availability. Effective management helps identify and address these risks earlier.

Inventory policy & responsibilities

Clear inventory policies establish how stock should be managed and who is responsible for key decisions. Defined ownership helps create greater consistency and accountability across the business.

KPIs & management routines

Inventory performance needs ongoing attention. Appropriate KPIs, regular reviews and clear management routines help businesses monitor performance, investigate exceptions and keep inventory under control.

INVENTORY MANAGEMENT SERVICES

Maximise service, minimise cost

There are, of course, other reasons to hold inventory including counteracting seasonal production cycles, servicing non-forecast demand and securing bulk purchase discounts. Regardless of the reason for holding inventory, the basic principle of inventory management is to balance the level of stock held with the level of service required; in essence, inventory costs money and should be minimised wherever possible.

In practice, this requires disciplined day-to-day management: regular stock reviews, clear replenishment controls, active exception management and timely action when inventory moves outside agreed parameters.

FEATURED CASE STUDY

improving inventory control while protecting service

Inventory optimisation in technology services

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.

SERVICES

How we improve inventory management

Many businesses operate to what is known as a Reorder Point (ROP) inventory management technique.

The ROP technique is most suited to operations where the demand for a product is perpetual (although demand levels may be uncertain) and the ROP methodology works to constantly minimise inventory whilst ensuring a targeted level of product availability.

Inventory management is concerned with balancing inventory costs against product availability and service. However, the relationship between inventory cost and service is not binary – some products are more critical than others, and consequently those products may require higher product availability levels.

To ensure that cash invested in inventory is assigned in proportion to a products importance, an ‘ABC analysis’ needs to be undertaken. Our inventory consultants are able to rapidly undertake an ABC classification, and design and implement a portfolio review process. The review and process will ensure that every product in the portfolio is accurately assessed against a range of criteria including margin, sales frequency, strategic fit and volume.

Our inventory consultants can perform a rapid audit of your inventory management policy, and policy adherence.

This audit will provide the baseline against which the inventory consultant can identify the improvement required to meet required practice. The inventory management audit will include a wide range of checks including portfolio management, measurement of forecast accuracy, slow-moving and obsolescence management, stock availability and methods used to calculate inventory targets.

Developing practical inventory policies that define how stock should be managed, including decision rules, responsibilities, controls and escalation processes. Clear policies help ensure inventory decisions are made consistently across the business.

Establishing meaningful inventory KPIs, reporting and regular management routines to monitor stock performance and identify where action is required. This provides greater visibility, accountability and control over ongoing inventory performance.

HERE TO HELP

Expert inventory consultants

Inventory management is very much a science. However, there are still many businesses that use rules of thumb to calculate inventory targets, such as holding a number of weeks average supply, or allowing arbitrary ‘just in case’ stock to be held.

We have significant experience in inventory management, from forecasting demand and aligning the inventory policy through to stock location, handling and storage decisions. We help clients understand the optimal level of inventory for their business, and how that inventory can be stored, retrieved and replenished in the most cost and service efficient manner.

Our focus is on making inventory management practical and sustainable, with clear processes, defined responsibilities and management routines that can be embedded into day-to-day operations.

CONNECTED SERVICES

Improving inventory performance across the supply chain

Inventory performance is influenced by more than stock management alone. Demand, planning, replenishment and supply decisions all affect how much inventory a business holds and how effectively it supports customer service.

Inventory optimisation

Determine appropriate inventory targets, safety stock, reorder points and replenishment parameters.

Demand forecasting

Improve visibility of future demand and provide a stronger basis for inventory and replenishment decisions.

Sales & operations planning

Align demand, supply and inventory decisions through a structured cross-functional planning process.

CLIENT FEEDBACK

Optimising stock across a global network

“PTL Co supported a comprehensive review of our inventory policies across a complex multi-site distribution network operating throughout the UK, Europe and North America. Their structured, data-driven approach identified opportunities to reduce inventory investment while maintaining service levels and product availability. The recommendations were practical, commercially focused and aligned with the operational realities of our business, providing a clear roadmap for inventory improvement.”

Chief Executive Officer, The Quartz Corp

INSIGHT