Inventory Reduction

1 day

Minimising working capital and increasing service levels

course code 3. 12

What is the course for


Reducing the overall stock level


Defining inventory management policies for individual SKUs


Creating and stabilising the management process

Stocks of raw materials, semi-finished and finished products represent important entries in the company’s balance sheet. While on the one hand they allow for the smooth and continuous running of production processes, on the other they represent a major capital asset, which if used differently, could have notable returns for the company. For example, it could be invested in innovation or in developing new business. Furthermore, materials stored in a warehouse are subject to the risk of obsolescence and deterioration, as is often seen in many companies seeking operational continuity, while forgetting to manage their total costs. With the increase in demand variability, inventory reduction and stock control have become key factors for the success of manufacturing companies.

In the Toyota Production System and in all production systems managed from a Lean perspective minimising stocks and following a “Just in time” strategy, ideally with zero stock, is considered essential. For this reason, hundreds of leading companies have successfully developed and tested certain very efficient techniques and processes for inventory analysis and defined management policies for inventory management, allowing them to reduce working capital and ensure levels of service and operational continuity, while at the same time achieving remarkable economic-operational benefits and improved use of production factors and warehouse space.

During the Lenovys Inventory Reduction training course, participants will acquire the key principles for applying these techniques, in order to begin developing the skills needed to master stock management in the company.


  • Reducing the overall stock level
  • Defining inventory management policies for individual SKUs
  • Creating and stabilising the management process
  • Reducing working capital and the risk of obsolescence and deterioration
  • Increasing the level of service

Addressed to

  • General managers
  • Operations/supply chain/purchasing supervisors
  • Logistics/warehouse/production planning supervisors


Introduction to stock management

  • Logistic-productive models and benchmarks
  • Stock position
  • Advantages and disadvantages of stock
  • Costs associated with inventory
  • Service level
  • Stock valuation indicators
  • Stock in the corporate budget

Analysing current stock status

  • ABCX Matrix
  • ABC consumption analysis
  • Stock day cover

Analysis of the initial situation

  • Deployment of retail inventory
  • Mapping and planning the physical process

Restoring base conditions and improving systems

  • Stock management systems
  • Materials management models
  • Fixed quantity reorder point and emergency stocks
  • Fixed time reorder point

Stabilising processes by eliminating anomalies

  • Anomaly detection system
  • Analysing root causes and defining countermeasures
  • Defining and prioritising improvement actions

You will experience

  • How to analyse and reduce stock
  • How to optimise individual SKU management policies
  • How to create and stabilise the inventory control process

Download the in-company training catalogue