The challenge
Across multiple sites, inconsistent inventory practices made it difficult to distinguish justified spare-parts coverage from excess. An indiscriminate cut could have shifted cost from the balance sheet to emergency purchasing or equipment downtime.
The approach
The program standardized processes, strengthened inventory governance, and used data-driven analysis to identify rightsizing opportunities. Decisions considered demand, material flow, service requirements, and the operational context at each site. The goal was to make inventory more useful and more accountable.
The reported result
The work achieved more than a 27% inventory reduction and released approximately $1.1 million in working capital. These figures describe the project outcome; they should not be treated as a forecast for another organization.
What other teams can apply
Set a baseline before changing parameters. Segment parts by criticality and demand. Review obsolete and duplicated stock separately from critical coverage. Track service and emergency purchases as inventory changes, and validate the financial result with Finance.
Next step
For more on the project context, read Glenn’s detailed professional case study. For a site-specific opportunity, begin with an evidence-based MRO assessment.
Read the detailed case study →
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