Inventory Optimization Services

How much inventories do you need? Minimize your inventory and secure a high level of service using SAP® tools already available to you... Today!

As simple as it sounds, inventory optimization is one of the biggest challenges facing companies today. Optimized supply chain is a key differentiator. Inventory you carry is an indication of your operational efficiency. It is no surprise that supply chain optimization is the top most priority of most organizations today.

Our inventory optimization services begin with making best use of SAP® tools that most likely you already have. We then take it a notch further by making use of LEAN PLANNER®, a patent-pending LEAN planning solution offered as a bolt-on on SAP®. We offer a comprehensive suite of solutions to analyze, plan, control, and monitor inventories across all levels of supply chain on SAP®.


  1. Reduce procurement spend, accelerate inventory turns, reduce warehouse handling costs, increase production efficiency, and raise fulfillment performance by 15% to 50% within months

  2. Define company-wide supply chain policy for different products and services and implement them on SAP®

  3. Secure master data integrity for procurement, planning, inventory, warehouse, production, and fulfillment activities on SAP®

  4. Provide better visibility and real time alerts of actual inventory situation
  5. Realize measurable process improvements within months

  6. Transfer knowledge and skills to enable customers implement continuous inventory controlling on their own

  7. Significantly improve cash conversion cycle (cash flow)

Five Simple Steps:

  1. Analyze your cash conversion cycle:Start with an eye on your shareholder value. We assess three distinct areas of opportunity:

  2. Dive into key operational metrics at the business unit level: Dead Stock, Inventory Levels, Inventory Turns, and Slow Moving Materials are a few metrics that we evaluate at the business unit level to assess inventory conversion inefficiencies. Additional metrics are used to assess opportunities with receivables collection and payables deferral processes. We slice and dice the list using dynamic ABC classification to assist you focus on high-valued, maximum-opportunity products, plants, distribution centers, customers, and vendors.

  3. Assess the current state of your key operational processes and develop achievable optimization targets: There are several interdependent processes that influence inventories on SAP®. Demand planning and forecasting, materials requirement planning, stocking strategies, manufacturing strategies, and warehousing are a few that directly influence inventories. We analyze the improvement opportunities within each of these processes, set up realistic targets, and develop an action plan to achieve them in three to six months.

  4. Develop a comprehensive supply chain policy to sustain target inventory levels: We use ABC analysis to classify materials based on usage and requirements. If necessary, we use secondary classification based on the pattern of usage and requirements. This classification is then used to develop a comprehensive supply chain policy.

  5. Implement an inventory control metrics: Develop a comprehensive set of control metrics that are used to monitor and control the performance of the end-to-end supply chain. These are typically developed at the material level and aggregated for a buyer, planner, plant, or any other supply chain node level.

Next Steps:

Call on us for a three-week fixed price engagement to assess optimization opportunities. The result is a list of specific achievable targets, action items, and a project plan.

Sign-up for a complimentary ROI assessment for using our patent-pending LEAN PLANNER®, a LEAN technique-based planning solution. This solution allows you to “pull” any product on any node of your supply chain resulting in game-changing significantly optimized inventories and improved service levels.

From LEAN business strategy to its implementation on SAP®, Lean Axis combines LEAN industry experience with SAP® implementation expertise to create solutions that bring real, tangible business value. We strive to increase business velocity by staying ahead of our client's needs with innovative solutions that deliver a rapid return on investment.

Lean Axis welcomes the opportunity to interact with you to explore how we can assist you to be more successful with your supply chain optimization initiatives on SAP®. Please email or call us at 408-802-1636.