Inventory Optimization

Inventory Optimization – Unlock Capital. Secure Supply. Streamline Processes

Why Inventory Optimization / Working Capital Optimization is Critical Today

Volatile markets, disrupted supply chains, and rising financing costs are creating new challenges for companies. With such environment, working capital is increasingly becoming a key management lever.

However, many companies carry more inventory than necessary – or in the wrong structure – due to legacy processes, lack of transparency, or fear of supply shortages. The result:

  • Tied-up capital instead of investment freedom
  • High storage and depreciation costs
  • Limited responsiveness to demand fluctuations

Excess inventory is a hidden cost driver – and therefore a lever that must be used.

What TARGUS means by Inventory Optimization

For us, inventory optimization does not mean blanket cuts, but rather a deliberate, data-driven, and process-oriented design of the inventory strategy along the value chain.

Our approach combines:

  • Methodological know-how paired with operational pragmatism
  • Individual risk assessment with systematic segmentation
  • Concepts with concrete implementation paths and controllable inventory logic – not “one-shot” inventory reductions

We consider all inventory types – from raw materials to semi-finished and finished goods – together with key influencing factors such as replenishment times, lot sizes, material costs, and planning logic.

Exemplary Analysis Modules:

  • Consumption patterns (ABC/XYZ analysis)
  • Target service levels and coverage ranges
  • Process and system parameters from procurement, scheduling, and production
What Makes Our Approach Distinctive

At TARGUS, we combine analytics with practical implementation:

  • Data-driven but not technocratic: We apply modern analytical methods and combine them with the realities of your operations.
  • Cross-functional: We don’t optimize isolated areas – we bring all relevant functions together, from procurement to production to sales.
  • Strong implementation: From analysis to execution, we support you end-to-end – with pragmatic, experience-based solutions and best practices from industry.
  • Transparency as a success factor: We create clarity about inventory structures, decision logics, and governance criteria.
Our Approach – Step by Step to the Optimal Inventory Structure
  1. Analysis of inventory structure and segmentation by consumption patterns and risk profile
  2. Definition of target coverage and service levels on an individual item level
  3. Derivation of concrete measures for scheduling, procurement, and production planning
  4. Implementation within existing systems – e.g., SAP, Excel, or planning tools
  5. Introduction of a clear control model with KPIs and governance routines
Why TARGUS?

We think in solutions, not in tools.

Our experienced consultants not only understand the theory but also the operational challenges in production, logistics, and planning. We deliver quick wins with lasting impact – even in complex and dynamic environments.

Identify Your Potential Now

Where in your company is capital tied up – and how much can be unlocked through targeted actions?

Let’s talk. We’ll identify tangible opportunities to free up capital without affecting supply security. TARGUS creates clarity on the right inventory level – and ensures it remains sustainably controllable in practice.

Your Benefits – The Tangible Impact of Optimization
  • Inventory reduction of 15–35% (depending on the initial situation)
  • Increased liquidity without taking on risk
  • Reduced storage costs and write-down risks
  • Enhanced operational consistency through precise process improvements
  • Improved delivery capabilities with lower inventory levels and capital commitment

Services

Do you have any questions about our services?

TARGUS Management Consulting AG
Dechenstraße 7
40878 Ratingen
+49 (0) 21 02 – 94 22 66
info@targusmc.de

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