Case study one

Excess Stock is a term used in inventory management, and is often called a number of different things; overstock, stock surplus, excessive stock, or excess inventory.

Source - easystock.com

Obsolete inventory is a term that refers to inventory that is at the end of its product life cycle. This inventory has not been sold or used for a long period of time and is not expected to be sold in the future. This type of inventory has to be written down and can cause large losses for a company.

Source - investopedia.com

• Cornelius Global
• 50+ locations (factory + DCs)
• 350m GBP turnover
• 60m GBP inventory

• End of year E&O stock at 9m GBP
• New product introduction process contributing to E&O
• Planning process contributing to E&O

• Understand the global E&O drivers
• Implement a robust process to reduce the current year E&O provision
• Reduce the following year E&O by 50%

• Setup & Led a task force to sell E&O inventory globally
• Introduced Sales & Operation Planning to prevent future E&O
• Updated the New Product Introductory process to accommodate the support the product life cycle (phasing in of new products and the phasing out of old products)

• 2.6m GBP generated in cash
• 1.2m GBP profit released back to the business
• Subsequent E&O reduced by 50%