Can you (or your delegate) answer most questions/statements with a strong 'yes'?

1. Do you have targets in place for inventory turnover and days on hand, and do you regularly measure improvements in these metrics? 

2. Do you have separate reporting for Raw Materials, Work-in-Progress, and Finished Goods inventory? 

3. Do you have a Sales and Operations Planning process in place across your value chain? 

4. Do you utilize production floor space efficiently, with 90% or more of the space dedicated to production rather than storing inventory? 

5. Do you minimize the need for external or internal warehousing space by utilizing just-in-time inventory strategies? 

6. Do you utilize inventory ownership strategies such as consignment or vendor-managed inventory? 

7. Do you have a continuous improvement program in place that includes lean practices? 

8. Do you regularly review and address inventory obsolescence to minimize its impact on EBIT? 

9. As a bonus, do you strive to minimize the amount of inventory reported as "Sales in Excess of billing"?

10. Like on DPO & DSO: Do you have metrics in place that link Cash Conversion Cycle performance to management compensation?

If you answered ‘yes’ to most questions, great!

You have your inventory management under control.

If you answered ‘no’ or are unsure about it, you might have a gap - an excellent opportunity to improve your cash flow and working capital.

Feel free to get in contact for an exploratory dialogue with helmig advisory AG to assess the art of the possible.