Obsolete and slow-moving inventory reduction
Client
Physical product businesses with manufacturing and warehousing operations.
The challenge
Obsolete and slow-moving inventory quietly consumes cash and warehouse capacity. In many businesses, items remain “kept alive” because the finished product is still in the range, even if sales have dropped and consumption is minimal.
What we did
We identified slow-moving and obsolete stock and helped the business reduce it in a controlled way.
How we identified inventory to act on
We used practical signals that owners and teams can understand and maintain:
• Reduced sales numbers
• Low consumption over time
Actions taken
• Sale and sell-down strategies for finished products
• Discontinuation of low-performing product ranges
• Reduction of associated raw materials that were only being held because the finished product remained active
Results
• Approximately 5% of rack space was freed up
• The business was able to introduce new products without increasing warehouse footprint
• Overall inventory reduced, not only in finished goods but also in raw materials that were no longer justified
Why it matters
Inventory reduction is not just a finance exercise. When done properly, it creates physical capacity, reduces complexity, and improves future purchasing discipline.
