1 million euro additional cashflow with smarter inventory
A big distributor had a familiar problem. Too much stock and not enough control.
Orders were made mostly on gut feeling. “Better too much than too little.”
That approach filled the warehouse and locked away over a million euro in slow-moving products.
Together with their team, we took a closer look at the data. We gathered sales history, open purchase orders, supplier lead times, minimum order quantities and storage costs. With all that information, we built a model that calculates the right reorder point and order size for every item.
The model keeps track of what’s already ordered, how long deliveries take and what it costs to keep something in stock. The goal is simple: keep enough inventory to serve customers well, but not so much that money sits on the shelf.
Behind the scenes, we handle the hard part
There’s quite a bit of math and logic involved, but the people on the floor don’t need to worry about that. We built an easy Power BI dashboard that tells them what to order, when to order and how much. It’s clear, practical and made for daily use.
We take care of the technical side and make sure the data is solid and reliable. That trust in the numbers helps people switch from ordering on gut feeling to ordering based on facts.
The result
Within a year, the company reduced excess stock by 1 million euro. That money is now available for new projects and investments. The purchasing team feels in control again and management finally has a clear view of where the cash is tied up. Working with data doesn’t have to be complicated. With the right setup, anyone can make smarter decisions and free up cash that’s hiding in plain sight.
