Tangible inventory reduction that lasts beyond a single project. Chartwell’s Inventory Reduction Program is designed to drive down inventory levels by 10-20% within 5-9 months.
Key features
- 10-20% sustainable reduction in inventory within 5-9 months.
- Advanced reporting functionalities with our sophisticated reporting tools, helping your team make data-driven decisions.
- Practical process improvements that streamline your operations without disrupting your workflow.
- Coaching for your team in sustained use of bespoke digital tools to actively manage and control inventory levels.
Typical use cases
There are three main use cases where this service brings the most value:
- When increased inventory is tying up cash that needs to be freed up.
- Space is limiting an organization’s ability to produce goods and meet customer demand.
- Ongoing cost of holding inventory is too high
Relevant methodology
- Zero Loss Analysis
- Inventory Saw Tooth Model
- Safety Stock Calculations
- Supervisor Training
- Tiered Reviews
- Decision-Making Tools
Industries
We have a strong track record of results across industries:
Opportunity Assessment
Typically, all projects begin with a 1–3 week Opportunity Scan at the relevant client site(s). During which, we quantify the size of the opportunity, set a target and design a plan for what would be needed to deliver that target.
There are a variety of questions we aim to answer as part of the assessment that include:
Current position:
- What are all the FP SKUs and the corresponding BoMs?
- What are all the ways inventory is monitored and measured?
- How do departments throughout the company review inventory?
- How have safety stocks and reorder points been determined? How are orders triggered?
- How long is the lead time for procured parts?
- How long is the lead time for parts manufactured in-house?
Zero Loss
- What are the optimized safety stock levels and reorder points for each SKU? How different is this from current levels?
- Which items do we have excess stock of? How could these be reduced?
- What is the minimum production lead time? What would need to change to get there?
- What are the simplest set of effective processes to ensure that correct purchasing decisions are made? How can we implement these?
We compare the current performance vs. the Zero Loss state to identify and prioritize opportunities for further in-depth analysis. Alongside the client team, we create a vision for how they want the inventory to be managed and then identify any key differences between that and where we are currently. This allows us to understand the bigger picture and identify the root causes for inventory build-up.
The Rapid Results Team
Chartwell consultants come on-site and lead a Rapid Results Team (RRT) to quickly reduce inventory and prevent future inventory build-up.
The RRT is a small, cross-functional client team led by a Chartwell consultant that has responsibility for delivering progress towards an outcome.
- Define optimal safety stock levels and reorder points for raw materials, and manufacturing batch sizes for finished goods
- If relevant, implement solutions to shorten production lead time to reduce WIP
- Analyze the expected finished good lifetime to model how much is excess
- Work with supply chain team to remove excess stock from inventory, for example through selling or repurposing
- Chartwell consultants will support the team to investigate all potential avenues to recover the financial value of the unwanted excess inventory
As inventory has built up in the past, rapid Inventory Reduction results will be quickly undone if the underlying causes are not found and addressed.
Consultants will work closely with client team members to:
- Identify the true root cause of high inventory levels
- Implement permanent fixes to address issues driving excess inventory, which can include:
- Sales and procurement process improvements,
- Planning optimization
- Increasing forecasting accuracy
The team will also design, implement and train the key client team members in the use of a bespoke suite of digital tools that interface with a client’s Materials Requirements Planning (MRP) system to ensure that stock levels are understood and controlled moving forward
Delivering results
The overall timeline to deliver target results depends on the process and industry, but initial results are typically seen within 3-6 months.
By targeting reduction of current excess stock and showing the impact of these on the chosen measure of inventory, the team builds up momentum and motivation to implement the longer-term and more challenging opportunities to ensure inventory does not rise again.
By the end of the Project phase, we expect to be in position where the team are sustainably maintaining inventory levels below target, and to have clear processes in place for managing inventory and driving further improvement.
Typical projects range between 5-9 months, resulting in 10-20% sustained reduction of inventory.

Sustaining results
The extent to which teams will continue to deliver further improvement vs sustaining the results delivered after the conclusion of the Chartwell-led RRT will depend on the nature of the process and the expectations set at the project outset.
In every scenario, Chartwell will leave client teams with a bespoke plan for sustaining their results, typically including:
- Handover of management of key tools, meetings and structures
- Sustainable processes & training for maintaining top KPIs
- Coaching key individuals to continue managing inventory levels using the structures, processes and tools implemented during the project
- Improvement Attitudes training
- Digital solutions for bespoke tools and more robust and advanced KPIs
For clients who want their teams to deliver further improvement after Chartwell support has ended, we have additional powerful offerings:
- SuperUser Training Programs
Additional resources
Below are additional resources to support manufacturing leaders in reducing inventory.