Inventory & Working Capital Optimization
For industrial companies with cash tied up in raw materials, work-in-progress and finished goods. Align inventory and payment policies with real demand, supply constraints and the customer service promise.
Book a callTypical client challenges
- Excess stock and stock-outs coexist because stocking policies and planning parameters are not differentiated.
- Slow-moving SKUs, uncertain forecasts and long lead times make inventory difficult to control.
- Payment terms or supplier-managed inventory arrangements have not been reviewed alongside operational stock policies.
Engagement scope
What the engagement can cover
Inventory baseline and SKU classification
Analyse raw materials, work-in-progress and finished goods by volume, variability, margin and age. Identify slow-moving stock and opportunities for SKU rationalisation.
Policies and planning parameters
Review safety stocks, replenishment rules, order quantities and lead-time assumptions. Define stocking policies by SKU class and align them with service targets.
Planning and inventory positions
Connect demand planning, production policies and stocking points. Assess where inventory provides service protection and where it reflects avoidable process uncertainty.
Payment terms and managed inventory
Review customer and supplier terms, consignment stock and vendor-managed inventory. Assess cash-flow implications alongside supplier relationships and responsibilities.
How we work
Diagnose → Design → Deliver
Diagnose
Establish stock, service and working capital baselines. Examine demand variability, inventory ageing and the causes of excess or shortages.
Design
Agree differentiated inventory policies, parameter changes and payment-term priorities. Assign owners and assess service risks.
Deliver
Support implementation and parameter governance. Track inventory and cash developments alongside service performance with operations and finance.
Objectives and measurement
A shared baseline. Clear ownership.
Inventory reduction is not an objective in isolation. Review cash and stock measures together with delivery performance so improvements do not simply shift risk to customers or suppliers.
- Inventory value, turns and days of inventory
- Slow-moving and obsolete stock
- Delivery reliability and stock-out frequency
- Payment terms and working capital movements
Who it is for
Typically engaged by
- CFO
- COO
- Planning lead
Example deliverables
- Segmented inventory baseline
- Planning parameter review
- Stocking rules by SKU class
- Cash and service dashboard
- Implementation ownership plan
Personally led
Niko Hietala
Every engagement is led personally by Niko, Menestio’s Founder & Managing Partner. He brings over 20 years in industrial supply chain, sourcing and operations in Europe and China, including his role as Senior Vice President, Supply Chain at Stora Enso Packaging Materials.
About NikoLet’s talk about your supply chain.
niko.hietala@menestio.comRelated services