Case Study: Minimizing Surplus Inventory


Company Snapshot:



  • Number of branches: 45

  • Number of employees: 450

  • Key customer base: Food processing, manufacturing, industrial



Inventory management provides both a challenge and an opportunity for all distributors. Our stock is our lifeline. If we do not maintain adequate supplies of merchandise, we lose sales. On the other hand, inventory costs money. The ongoing struggle is to have just the proper amount on hand, but not too much.


In past years, we've fallen into the distributor habit of not thinking about surplus inventory until the end of the year. During an annual inventory taking, it was obvious that we had accumulated way too much stock on our shelves.


Recently, we've ...

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