Increased liquidity thanks to stock reduction

Meaningful reduction of stocks

Stocks tie up capital – but stock reductions should be made on the basis of accurate sales forecasts in order to avoid shortfalls.
In many companies, a reduction in inventories is an important first step in order to make the best use of existing storage capacities. For example, by reducing safety stocks of tending slow-movers, a lot of tied capital can be released for other purchases. In addition to increasing cash and cash equivalents, the reduction in inventory also increases the logistical capacity of a warehouse. Therefore, stocks should be kept as low as possible in the best case of this without affecting the company’s ability to deliver.

However, it is difficult, especially for large stocks, to maintain the balance between the reduction of unproductive stocks and the risk of out-of-stock situations, without appropriate software for needs-based stock management. Stock reductions should therefore only be made on the basis of accurate sales forecasts.

Our customers say:

“Before, we were at 13% out-of-stock and are now down to 3%!”

Inventory reduction: Benefit from LogoMate through sales forecast

Mobile ladders in high-bay warehouse

LogoMate calculates a dynamic safety stock on a daily basis, which keeps a constant delivery and does not cause unnecessary costs. The calculations are based on ABC and XYZ analyses, which allow the control of safety stocks by article class.

The software is also able to distinguish one-time and seasonal outliers from each other. The stocks can thus be adjusted to an corrected course of the season. Current trends, promotions, holidays and sales deadlines are also included in the sales forecast. This allows for a reduction in stocks while maintaining a high level of delivery capability.

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