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Inventory Analysis and Policy Development

Many companies have identified the need to reduce stock holdings, but do not know how to develop, implement and maintain a suitable inventory policy to minimise stock whilst maintaining service commitments.

Using historical and forecast data, the warehouse consultants and inventory management consulting team at Gideon Hillman Consulting are able to design an optimised inventory policy specifically for the profile of your business. That policy is then further supported by the provision of dynamic models, allowing you to maintain and refresh the calculations without the need for extended or unnecessary consultant time.

Effective Inventory Management

The typical inventory management areas considered by our inventory optimisation consultants are:

Cycle Stock
The minimum quantity of stock needed to cover the average expected demand during the replenishment lead time. This stock calculation is then further supported by:
Replenishment Lead Time Safety Stock
A statistical calculation that assesses, based on historical data, the probability of variation in the replenishment quantity or the replenishment lead time. This calculation is then optimised against your target service requirements per SKU to deliver an optimal safety stock.
Demand Variation Safety Stock
Again, this is a statistical calculation, based on historical data, but this calculation considers possible variation of customer demand. As with the Replenishment Lead Time Safety Stock, the calculation is optimised against target service requirements to provide the optimal safety stock.

Further Impact

We also further enhance the impact of our proposed inventory policies with:

ABC analysis of SKUs
  • To determine fast moving/high value product vs. slow moving/low value product.
  • Purpose 1: Vary target stocks by level of value to the business (thus reducing working capital deployed)
  • Purpose 2: Identify obsolete stock that could be delisted  
Economic Order Quantities (EOQ)
  • A model that balances purchase costs and holding costs against demand.  
  • Purpose: To identify the optimal purchase quantity when considering the total costs (purchase, handling, storage, working capital) and not just the direct purchase cost.

To discuss our Inventory Management services

Call us on +44(0) 1926 430 883




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Gideon Hillman Consulting is a trading name of The Supply Chain Consulting Group Ltd is registered in England and Wales.
Company Registration No: 09751027. Registered office at Highdown House, 11 Highdown Road, Leamington Spa, CV31 1XT. UK
A supply chain and logistics specialist with knowledge of data analytics, logistics outsourcing and warehouse management

The Chartered Institute of Logistics and Transport fsdf SHD Logistics Awards Finalist New Facility 2016 Winner of the UKWA Technical Innovation Award 2016 The Logistics Awards Finalist Operation (large) 2018 QMS ISO 9001 Registered The Logistics Awards Finalist New Facility 2018 Supply Chain Excellence Awards 2018 Finalist Institute of Consulting