Inventory management and logistics.
Inventory and freight are where working capital and service level meet. We set stocking policy part by part, move inventory to suppliers where an agreement supports it, and run receiving, warehousing, and freight to a standard.
- 32%lower days inventory outstanding through material planning programs
- 900+SKUs under management, 2022 to 2026
- 6countries with supplier LTAs and inventory stocking agreements
From our founder’s operating roles. Not client results.
Where inventory management and logistics lose cash.
Excess stock and late parts often sit in the same warehouse. Both usually trace back to four causes.
One rule for every part
The same safety stock or reorder logic applies to a high-value part with steady demand and a low-value part used twice a year.
Slow and obsolete stock
Parts left from engineering changes, cancelled orders, and minimum buys sit on the shelf and in the valuation.
Inaccurate records
When counts are wrong, planners add buffer, and buffer becomes excess.
Freight on spot quotes
Without agreed rates by lane, freight cost changes with every shipment and landed cost is unknown.
Our inventory management and logistics methods.
Standard methods, set part by part and loaded into your ERP so planners and buyers work from the same rules.
- DIO
- Average inventory divided by cost of goods sold, times the days in the period, tracked monthly
- Segmentation
- ABC by annual usage value and XYZ by demand variability, with a stocking policy for each class
- Parameters
- Safety stock, reorder point, min/max, and order quantity set by part and reviewed on a schedule
- Replenishment
- MRP for planned parts, kanban or two-bin for high-volume, low-cost items, and supplier-held stock under stocking agreements
- Slow and obsolete
- Aging thresholds set with Finance, with a disposition for each part: use, return, rework, sell, or scrap
- Accuracy
- Cycle counting by ABC class, with root cause on every variance
- Warehouse
- Slotting by pick frequency and size, receiving to put-away flow, and 6S
- Landed cost
- Unit price, freight, duty, and handling compared by source
- Freight
- Domestic and international rates by lane under agreement, with Incoterms set on every purchase order
How it works.
Baseline
Measure DIO, inventory by ABC/XYZ class, aging, and record accuracy, and review freight spend by lane.
You receive: Inventory and freight baseline
Set policy
Set stocking parameters by segment and decide which parts move to supplier stocking agreements or kanban.
You receive: Stocking policy by part
Execute
Load the parameters into the ERP, work down slow and obsolete stock, start cycle counting, and negotiate freight agreements.
You receive: Updated ERP parameters, disposition list, and freight rates
Sustain
Review inventory and freight every month as part of S&OP, with targets by segment.
You receive: Monthly inventory and freight review
From operating experience.
- 32% lower days inventory outstanding through material planning programs that freed working capital and improved cash flow.
- Lower on-hand inventory through fixed-frame contracts with key U.S. suppliers.
- Domestic and international freight pricing agreements negotiated with logistics partners.
- North American procurement, logistics, warehousing, and inventory operations led for a global manufacturer.
Our founder delivered these results while running supply chain organizations between 2017 and 2026. They are operator results, not client results. See all results
What you receive.
- Inventory baseline with DIO, aging, and ABC/XYZ segmentation
- Stocking policy and planning parameters by part
- Slow-moving and obsolete stock disposition plan
- Cycle count program by ABC class
- Warehouse slotting and receiving flow review
- Supplier stocking agreement terms
- Freight rate review by lane, with agreement terms
Standards, contracts, and systems our founder has worked within
- ABC/XYZ
- MRP
- Kanban
- Cycle counting
- 6S
- Incoterms
- Infor LN
- Shoptech E2
- Fishbowl
Inventory management and logistics questions.
Will lower inventory hurt on-time delivery?
It should not when levels are set part by part. Critical, high-use parts keep their buffer, and excess comes out of slow and over-ordered parts. For a focused excess program, see inventory and DIO reduction.
How do you decide where parts sit in the warehouse?
By pick frequency, size, and handling. Fast movers go closest to the point of use, slow movers higher or farther back, and each location holds one item so receipts and picks stay accurate. For DIO targets, see inventory and DIO reduction.
What is an inventory stocking agreement?
An agreement where the supplier holds stock of your parts against a forecast and ships on release. Terms cover the stock level, the replenishment trigger, price, and what you owe for that stock if demand changes.
Do you negotiate freight?
Yes, domestic and international freight pricing agreements with logistics partners. We also set Incoterms on purchase orders so it is clear where cost and risk transfer.
Can cycle counting replace our annual physical inventory?
Many manufacturers make that move once count accuracy is proven. Your Finance team and auditors decide. We set up the cycle count program and the accuracy records they need to see.
Start with a 30‑minute conversation.
Describe what you buy and where the problem is. We reply to every message directly.