One of the core concepts of effective inventory management is the trade-off between the levers of cash, cost and service: balancing the working capital tied up in stocks, the cost of ordering and holding stocks, and the achievement of planned customer service levels.

Inventory optimisation - where to start? - To apply these levers, a good starting point is an analysis of existing inventory levels. An assessment of stock levels in value or volume is useful for understanding capital employed but gives little indication of whether inventory levels are optimised or where improvement opportunities can lie across multiple stock holdings within the network.

About REL

REL, a division of The Hackett Group, Inc. is a world-leading consulting firm dedicated to delivering sustainable cash flow improvement from working capital and across business operations. REL's tailored solutions balance client trade-offs between working capital, operating costs, service performance and risk. REL's expertise has helped clients free up billions of dollars in cash, creating the financial freedom to fund acquisitions, product development, debt reduction and share buy-back programs. In-depth process expertise, analytical rigor and collaborative client relationships enable REL to deliver an exceptional return on investment in a short timeframe. REL has delivered work in over 60 countries for Fortune 500 and global Fortune 500 companies.

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