Where is inventory tying up unnecessary cash – and why?
Which inventory positions tie up unnecessary capital, what causes them, and which decisions on portfolio, replenishment, service levels, procurement or ERP parameters can release working capital without putting service at risk?
Inventory is not a goal in itself. What matters is its economic purpose.
The Health Check connects inventory with service, portfolio economics, planning quality and ERP control parameters. It shows whether capital is being used deliberately or simply tied up.
Seven dimensions – from targets to sustainable control.
The diagnostic connects forecasting, segmentation, inventory parameters, service levels, portfolio economics, procurement and governance into one working-capital view.
From item portfolio to working-capital impact.
The key lever is differentiated control: high-value low-turnover items require different rules from fast-moving standard items. Portfolio, service levels and ERP parameters therefore need to be managed together.
See how 36 answers are translated into cash and management levers.
The sample uses fictitious company data and demonstrates the premium report logic: red flags, ABC/LMH, portfolio economics, ERP replenishment strategies, working-capital opportunity and a 30/60/90-day roadmap.
Open full sample reportFictitious data · Muster Components GmbH · Industrial Manufacturing
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Assess the actual practice in your company. Examples below each question support interpretation; “Not relevant” is excluded from scoring.
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Go upstream when inventory is only the symptom
The next diagnostic should address the dominant cause behind the inventory exposure rather than optimizing stock in isolation.
Planning & decisions
If forecast quality, supply variability or missing management trade-offs are the main drivers of inventory.
S&OP / IBP Health Check →End-to-end supply chain
If inventory exposure is linked to supplier risk, operations, logistics, data or governance across several functions.
SCM Maturity Check →