Inventory Reduction & Warehouse Optimization
Do you carry excess inventory, face stockouts, or have a hard-to-navigate warehouse?
These issues are solvable.
RPM addresses these challenges. We reduce what you carry, improve storage methods, and establish planning parameters that keep the right materials in the right place at the right time.
Who We Serve
We work with manufacturing and distribution organizations experiencing one or more of these challenges:
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The ERP system shows available components, but they cannot be found on the floor.
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Parts run out regularly, forcing expedited shipments and premium freight to keep the line running.
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Overall inventory has grown without a corresponding increase in production volume.
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Materials are stored in aisles, non-designated areas, or wherever space allows.
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Only a handful of people know where specific parts are located when tribal knowledge is required to run the warehouse.
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Phantom inventory: the system says stock exists, but physical counts tell a different story. There are large discrepancies between book inventory and physical counts.
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Obsolete, slow-moving, or excess inventory consumes space and working capital.
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Inconsistent labeling, missing barcodes, and unreliable location control.
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Line stoppages, reworked production schedules, and customer delivery dates are at risk.
Our Approach
The foundation of our work is a Plan for Every Part (PFEP). PFEP is a comprehensive, part-by-part data set that captures lead times, supplier information, packaging dimensions, storage requirements, minimum order quantities, safety stock levels, and points of consumption. When this data exists in scattered systems or not at all, we build it from scratch.
Once the PFEP is in place, the rest of the work follows a clear path: reorder points reflect actual lead times, warehouse locations are assigned and labeled, replenishment rules are documented, and the ERP system reflects physical reality.
The result is a warehouse where any employee can find any part, and a supply plan where materials arrive when they are needed.
Before making recommendations, we conduct a structured discovery phase to gather the raw data most organizations have never pulled together in one place, including part-level details from ERP records, supplier information, warehouse observations, and production schedules. It is the only way to build a credible plan. Without it, inventory targets and warehouse redesigns are guesswork. With it, decisions about what to stock, where to store it, and when to reorder are based on each part’s actual characteristics.
The discovery phase covers:
Warehouse Layout
Current warehouse layout, storage locations, rack capacity, and slotting.
Part-Level Data
Usage rates, lead times, ordering mechanisms, min/max settings, and supplier details.
Packaging
Packaging dimensions for primary and secondary packs: critical for determining how much space each SKU requires.
Demand Planning
Sales actuals, build schedules, and inventory actuals.
Supply Planning
Capacity limitations, minimum order quantities, and supplier lead times.
ERP Master Data
ERP master data and the workflow between the system and the shop floor.
What We Do
Plan for Every Part (PFEP) & Inventory Planning
We build and maintain a PFEP that captures each part’s usage, lead time, order method, minimum order quantity, and point of consumption. This single source of truth supports better planning and more reliable replenishment. We also update min, max, and safety stock levels so materials are ordered at the right time, in the right quantities, reducing excess inventory and shortages.
Warehouse Layout, Slotting, & Visual Management
We redesign warehouse organization based on the PFEP, so every part gets a defined, documented home. We create a material location master and a slotting report that tie physical storage to ERP records. Labeling, scanning, and barcoding are standardized across the facility, so any employee, regardless of their tenure, can locate and retrieve materials without asking anyone for directions.
Demand & Supply Planning Alignment
We align demand and supply planning so material flow matches production needs. By reviewing forecasts, building schedules, inventory levels, and engineering changes, we identify mismatches and adjust reorder points, buffers, and minimums. When ERP lead times are wrong, we work with buyers and suppliers to fix them and prevent stockouts.
Inventory Rationalization & Obsolescence Reduction
We evaluate each part’s consumption rate, demand behavior, and order parameters to identify obsolete, slow-moving, and excess inventory. PFEP documents the status and demand pattern of every SKU, providing the data needed to make defensible decisions about what to keep, what to return, and what to write off. This reduces carrying costs and clears space for materials that actually move.
The Impact on Your Organization
Clients who complete this work see measurable improvements across both financial performance and daily operations.
Fewer disruptions, expedites, and line stoppages: aligning planning parameters to actual demand and lead times keeps critical components available, reduces emergency purchasing and premium freight, and keeps production on track.
Better inventory accuracy and warehouse productivity: correct slotting, clear location control, and standardized labeling reduce discrepancies, improve cycle counts and audit results, and cut picking time, forklift travel, and reliance on tribal knowledge.
More predictable throughput and on-time delivery: stable material flow supports consistent production schedules and improved fill rates for customers.
Stronger planning and decision-making: with a complete and current PFEP, planning becomes more data-driven, improving forecasting, budgeting, and cross-functional alignment.
Ready to Get Started?
Talk to our supply chain team about reducing the inventory your organization carries, eliminating the premium freight that comes with running out, and building a warehouse that anyone on your team can navigate.
