Operations · Inventory & Data
47% Inventory Reduction for a GCC Distribution Business
Inventory reduced by 47% through data analysis and process redesign.
The challenge
A GCC distribution business was sitting on inventory levels that had grown faster than its sales. Working capital was tied up in stock that was either slow-moving or duplicated across locations. Cash flow was constrained and write-off risk was rising.
Standard inventory reduction programmes had been attempted but never stuck. The leadership team wanted a structured, data-driven approach that would not break service levels in the process.
Our approach
- Performed a full SKU-level data analysis to segment stock by velocity, margin, and strategic importance.
- Rebuilt the replenishment logic and safety-stock policy by segment and location.
- Worked with sales and procurement to phase out and run down obsolete and duplicated lines without service disruption.
- Implemented ongoing inventory governance with a monthly review rhythm.
The outcome
“We had tried inventory programmes before. Jim was the first person who did it without us losing service. The cash impact was significant.”
Sector: Distribution
Location: GCC
Service: Supply Chain Advisory / Operational Redesign
The Situation
A GCC distribution business was carrying excess inventory that was tying up working capital across its operation. The ERP system held stock data that the operational team did not trust — procurement and warehouse decisions were being made on instinct and experience rather than clean data. Stockouts and overstocks existed simultaneously across different SKUs.
The business was spending capital holding inventory it did not need while running short on inventory it did. Both problems had the same root cause: the demand signal was broken.
The Challenge
Reduce inventory materially without creating service level risk. Establish a clean, trusted demand signal that the team would actually use. Fix the underlying process and data problem so the improvement would hold after the engagement ended.
The constraint was clear: no new software. The existing ERP system needed to be made to work — not replaced.
The Approach
Torrevie began with a data analysis of what inventory was physically on hand versus what the ERP system recorded. The gap between the two was significant and explained why the team had stopped trusting the system.
ERP realignment brought the system data in line with physical stock reality. Demand signal work separated genuine customer requirements from historical noise — orders that had been placed speculatively, safety stock that had been set by rule of thumb rather than data, and slow-moving SKUs that were consuming space and capital with no realistic prospect of sale.
SKU rationalisation removed the tail — dead stock and low-velocity lines that were obscuring the picture for active inventory. Procurement and replenishment processes were redesigned around the clean demand signal, with clear rules for reorder points and quantities that the team could apply consistently without external support.
No new software was purchased or implemented. The existing systems were redeployed correctly.
The Results
- Inventory reduced by 47%
- Working capital released across the operation
- Clean demand signal established and embedded into procurement workflow
- ERP data trusted and used by the operational team for the first time
- Improvement sustained after engagement through process redesign, not ongoing dependency on external support
What This Means for GCC Distribution Businesses
Excess inventory in GCC distribution is almost always a data and process problem, not a buying problem. When the demand signal is broken, procurement compensates by holding more stock as a buffer. The buffer grows. Capital is tied up. And the underlying problem — untrustworthy data — remains.
The solution is not a new system. It is fixing the data in the system you already have, redesigning the process around that clean signal, and building the discipline into daily operations so it holds. That is what this engagement delivered — and it did not require a single new software licence.
You can learn more about our supply chain advisory services, see our OTIF transformation case study, or explore agentic automation for GCC operations.
Frequently Asked Questions
How was a 47% inventory reduction achieved without new software?
The reduction was achieved through data analysis, ERP realignment, demand signal work, SKU rationalisation, and process redesign. The existing ERP system was redeployed correctly — the data was cleaned, the processes were fixed, and the team was trained to use the system as intended. New software was not required.
How long did the engagement take?
The engagement covered data analysis, ERP realignment, SKU rationalisation, process redesign, and team training. Timescale varies by the size and complexity of the inventory operation.
Did service levels drop as inventory was reduced?
No. The reduction was achieved by removing stock the business did not need — dead stock, excess safety stock, and slow-moving SKUs — while maintaining appropriate levels for active, fast-moving inventory. Service levels were protected throughout.
Can this approach work for businesses using any ERP system?
Yes. The methodology is ERP-agnostic. We have worked with businesses on SAP, Oracle, Microsoft Dynamics, and local GCC ERP platforms. The approach is the same regardless of the system — clean the data, fix the process, build the discipline.
How does AI fit into inventory management for GCC distributors?
Once the demand signal is clean, AI can be applied to demand forecasting, replenishment automation, and exception alerting — identifying SKUs at risk of stockout or overstock before they become a problem. We deploy AI on top of clean data. Applying AI to broken data produces faster wrong answers.
Is Excess Inventory Tying Up Your Working Capital?
The data to fix it is already in your ERP system. The problem is usually the process around it, not the system itself. DM INVENTORY or book a call to discuss your distribution operation.