Inventory Reduction and Process Optimization
Manufacturing company with a growing product portfolio, its own supply chain, and multiple production sites
High inventory levels, inaccurate forecasts, and an uncontrolled portfolio expansion were straining warehousing operations. Targeted measures were intended to reduce inventory and increase customer satisfaction.
The challenge
The situation
Inventory levels significantly exceeded the industry standard and benchmarks. Forecast figures deviated considerably from actual sales, resulting in inefficient warehousing. The product portfolio kept growing in an uncontrolled manner instead of being actively managed.
Our approach
What we delivered
Development of a master plan for inventory reduction that brings together the three causes: stock above benchmark, forecasts diverging from actual sales, and an uncontrolled growing portfolio.
Product clustering into bleeders and runners, plus customer orientation through A/B/C clustering
Clear accountability for roles and responsibilities, so that the portfolio is actively managed rather than left to keep growing.
Improved forecasting and global planning across all product lines
Integration of master data and dashboards for fast analysis (single source of truth)
Flexible lean manufacturing, optimization of production sites, and inventory as a shared KPI
The outcome
Results & impact
45% less inventory
Reduction of inventory by 45 percent compared to the baseline level.
Inventory turnover 6.2
Improvement of inventory turnover to a value of 6.2.
+10% customer satisfaction
Improvement of customer satisfaction by 10 percent.
In summary
Inventory fell by 45%, inventory turnover rose to 6.2, and customer satisfaction improved by 10%.
Related expertise
Lean Manufacturing →
Flexible production and optimization of production sites for shorter lead times
Supply Chain Management →
Inventory reduction via a master plan and inventory as a shared KPI
Reporting & Dashboards →
Dashboards based on integrated master data as a single source of truth
Manufacturing & Supply Chain Management →
Improved forecasting and global planning across all product lines
Sources
- https://theentourage.de/case-study/bestandsreduzierung-prozessoptimierung/ (live case study, accessed 2026-06-14)
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