Research
The "Asset Rich, Cash Poor" Paradox
What the data says about mid-market inventory: 38% excess inventory, 25% carrying costs, and the path to releasing trapped cash.
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Automated Inventory Intelligence
Your Warehouse Is Bleeding Cash.
We Stop the Leak.
Mid-market companies have 38% excess inventory sitting on shelves, costing 25-30% of its value every year in carrying costs alone.
We handle the math: finding your trapped cash and rebalancing your stock levels, so your team can focus on execution. Month by month, with continuous optimization.
No software to installWe do the analysis, you review the resultsOngoing monthly optimization
$707B
trapped in working capital across manufacturing & distribution
J.P. Morgan 2024
38%
of SMB inventory is excess stock above demand
Netstock 2024
30%
inventory cost reduction achieved with dynamic optimization
Industry benchmark 2025
25-30%
annual carrying cost eating your inventory value
The Perfect Storm
Why Mid-Market Companies Are Drowning in Inventory
After years of "Just-in-Case" stockpiling during supply chain chaos, manufacturers and distributors now face a brutal reality: demand has softened, but warehouses are still full. The daily hell? Firefighting stockouts on some items while sitting on months of excess stock on others. In an environment of high interest rates and tariff uncertainty, that imbalance isn't just tying up cash; it's actively destroying value.
Capital Is Expensive
Interest rates between 8-12% mean every dollar locked in inventory has a real cost. A $10M inventory position costs $2.5-3M annually just to carry.
A More Volatile World
Volatile markets, unpredictable suppliers, geopolitical disruptions. Demand patterns shift faster than ever. Yesterday's inventory parameters don't fit today's reality, and the gap costs money.
Lead Time Chaos
68% of SMBs cite lead time variability as their top challenge. Most ERP systems use static averages, but reality fluctuates wildly.
Automated Inventory Intelligence
Statistical Rigor, Not AI Hype
90% of SMBs lack the supply chain data science talent they need, and can't justify hiring it. We become that capability for you. No software to buy. No consultants handing you a 200-page report and walking away. We do the work: running your data through proven statistical and machine learning methods, delivering optimized parameters monthly, and acting as an extension of your team.
ABC/XYZ Segmentation
Not all SKUs are equal. We classify every item by value contribution (ABC) and demand volatility (XYZ) to create a prioritized action plan.
- AX items: High value, predictable. Keep lean, reorder frequently.
- CZ items: Immediate liquidation candidates
Continuous Calibration
Annual parameter reviews can't keep pace with how suppliers and customers actually behave. We recalibrate weekly or monthly based on real conditions, matching buffers to current reality.
- Higher service levels with less inventory
- Protects customer fill rates while releasing trapped cash
Algorithmic Reorder Points
Replace gut feeling purchasing with modern statistical probability. Regular automated calculations keep your reorder points synchronized with actual demand.
- Service-level-based targets
- Adaptable to seasonal patterns
The Skills Gap
We Help You Focus on Your Core Business
You know inventory optimization matters. But finding someone who can actually do it (clean messy data, apply statistical models, interpret the results) is difficult. Research shows 68% of manufacturers cannot find qualified supply chain analytics talent.
And even if you could hire someone, they'd spend most of their time fighting the same fires as everyone else.
We exist to close that gap. You get the outcome of a dedicated inventory intelligence function, without the hiring, the software purchases, or the learning curve.
We handle the math. Your team focuses on execution.
Why Cash Release Often Improves Service
Industry research consistently finds the same pattern: excess stock of slow-moving items, shortages of fast-movers.
Correcting this imbalance releases trapped cash while improving availability of what customers actually order.
Rebalancing inventory typically improves both cash position and fill rates
Proven Results
This Isn't Theory. It's Math That Works.
Companies using dynamic inventory optimization consistently achieve 25%+ inventory reductions while maintaining or improving service levels.
307%
Documented ROI
A major distributor reduced inventory from $120M to $90M, releasing $30M in cash while improving delivery performance.
Nucleus Research validated
6 mo
Fastest Payback
A pharmaceutical distributor achieved 388% ROI with payback in just 6 months through safety stock optimization alone.
AAH Pharmaceuticals case
€1.5M
Per Location
A manufacturer recovered €1.5M per location by adjusting safety stock levels per SKU based on localized demand patterns.
NTT DATA case study
How We Work Together
An Ongoing Partnership, Not a Project
You focus on running your business. We handle the inventory math, continuously recalibrating your parameters so you always have the right stock levels.
01
Discovery
We talk. You share your situation, challenges, and goals. We determine if there's a fit.
02
Assessment
You send us a data export. We clean it, analyze it, and show you exactly where your cash is trapped. Then we present a proposal.
03
Ongoing Service
Weekly or monthly, you send updated data. We deliver optimized reorder points, safety stock levels, and order quantities. Regular check-ins keep us aligned.
What You Receive
Actionable Intelligence, Delivered Regularly
No 200-page reports gathering dust. You get specific, SKU-level recommendations your team can act on immediately.
Weekly/Monthly Deliverables
- SKU-level recommendations
Optimized reorder points, safety stock levels, and order quantities for every item
- ABC-XYZ classification updates
Items reclassified as demand patterns shift
- Exception alerts
Items flagged that need immediate attention
- Service level tracking
Monitor fill rates and availability performance
Quarterly Business Reviews
- Cash release progress
Track how much working capital has been freed
- Service level analysis
Detailed review of fill rates and stockout trends
- Parameter accuracy review
How well our recommendations matched reality
- Strategic recommendations
Adjustments and focus areas for next quarter
Who We Work With
Companies With Inventory Challenges
If you have physical inventory and suspect there's cash trapped in your warehouse, we should talk.
You Have Inventory
Whether it's 200 SKUs or 50,000, if you're carrying stock that ties up working capital, our methods apply.
You Can Export Data
We work with any system: ERP, WMS, or spreadsheets. If you can export a CSV of your inventory and sales history, we can analyze it.
You Want Results
Not another 200-page report. Actionable recommendations your team can execute immediately to release trapped cash.
Insights
Research & Perspectives
Data-driven analysis on inventory management, working capital optimization, and the challenges facing mid-market companies.
Stop Paying to Store Cash You Could Be Using
Every month you wait, carrying costs eat another 2% of your excess inventory value. Let's find out how much cash is trapped in your warehouse, and how fast you can release it.
Schedule Your Free Assessment