Has your inventory become overwhelming? Are you struggling with dead C-items and want to optimize your stock once and for all? Don’t worry. Here’s a practical guide with five steps to help you take control of your consumption and optimize your inventory.

1. Clean up: Remove unused items

A large part of your inventory is often occupied by items that are never used. Typically, only 70-80% of stock is actively used, while the rest just takes up space and resources.

Focus on identifying items that haven’t been used in the past year. The chances of them being needed again are minimal. Plan a comprehensive clean-up and remove anything that is no longer relevant. This will free up space and make inventory management easier going forward.

2. Consolidate stock: Adjust assortment based on need

Once the clean-up is done, the next step is to organize the remaining items. It can be helpful to categorize them based on usage frequency:

• Category 1: Items used rarely.
• Category 2: Items used monthly.
• Category 3: Items used weekly or daily.

This method helps focus on need-based management instead of storing items “just in case.”

3. Create a system and transparency

Clutter and poor inventory management can quickly take over if daily busyness leads to neglecting structure. Systematic placement of items is a key part of optimization.

• Organize by frequency and size: Ensure frequently used items are easily accessible.
• Use labels and color codes: Mark fixed locations for each product group. This makes it easy for everyone to find, pick, and return items.
• Avoid reliance on location-knowledgeable employees: A good system means anyone can navigate the inventory without prior knowledge.

4. Strategically position your stock

To reduce wasted time, the layout of your inventory should align with the workflow. Items should be placed near the areas where they are actually used, minimizing unnecessary trips back and forth.

In some cases, decentralized stock may be a solution. Place smaller quantities of relevant items directly in production areas or other places where they are needed. This improves both productivity and efficiency.

5. Automate and standardize processes

Automation can help maintain the good habits established through cleaning and organizing. This applies to both internal and external processes:

• Internal processes:

  • Standardize procurement procedures to create consistent workflows.
  • Reduce impulse buying by using data to precisely predict needs.

• External processes:

  • Collaborate with a smaller number of suppliers who can cover a wide range of products. Effective partnerships can streamline both purchasing and inventory management.

Make inventory optimization an ongoing process

Effective inventory management requires effort, especially in the beginning, but it pays off in the long run. Continuously evaluate and repeat this process to ensure your inventory is always aligned with your business’s current needs.

By implementing these steps, you can ensure that your inventory becomes a resource that supports your business, rather than a burden that weighs it down.