Faced with excess inventory across 80,000 SKUs, this machinery manufacturer partnered with ABA to optimise stock policies and SAP settings—unlocking CHF 150.9M in working capital in just 12 weeks.

A multinational machinery manufacturer was grappling with ballooning inventory and poor responsiveness across its European and Asian operations. With over 80,000 SKUs—30,000 of them active—their stock policies were outdated and their SAP configuration misaligned. Excess stock, averaging six months across the portfolio, was locking up capital and dragging down performance KPIs.

The Challenge

The business was stuck in a pattern of overstocking driven by poorly tuned replenishment rules and a one-size-fits-all approach to safety stocks and MOQs. Supply chain reactivity was deteriorating, and working capital was tied up in slow-moving stock, with little visibility on how to course-correct.

Key Constraints:

• 80,000 SKUs with a broad variance in behaviour

• SAP settings reinforcing excess stock

• Inventory held “just in case” for demand peaks

Strategic Intervention

Led by Sandy Torrekens, ABA deployed a focused inventory reduction programmeme built on a foundation of SKU-level segmentation and policy alignment. By tailoring replenishment and stockholding rules to actual demand profiles, the business regained control.

• Stock Segmentation:

  • Assemble-to-Order (AtO): For customised products

  • Make-to-Stock (MtS) – Simple Replenishment: For high-volume, predictable items

  • MtS – Demand-Driven: For variable-demand products using statistical policies

• Inventory Optimisation Measures:

  • Corrected SAP settings to remove excess safety stocks

  • Aligned MOQs with realistic demand

  • Refined procurement and planning strategies for SKU-specific needs

• Demand Variability Management:

  • Prevented overstocking through differentiated stock policies

  • Applied statistical logic to determine optimal replenishment and buffer levels

The approach was collaborative, with ABA working closely alongside supply chain and procurement teams to ensure adoption and sustainability.

Tangible Results

Within just 12 weeks, the project delivered:

• 46% Reduction in Stock Levels

• 150.9M CHF Unlocked in Working Capital

• Improved Fulfilment Speed: More responsive to customer demand

• Reduced Procurement and Warehousing Costs: Leaner, more efficient operations

• Optimised SAP Inventory Settings: Long-term sustainability and improved reactivity

Key Takeaways

This case demonstrates how targeted inventory optimisation can unlock major capital and performance gains—without sacrificing service. By taking a hands-on, SKU-sensitive approach, ABA turned complexity into control.

Without intervention, stock levels would have continued to rise, procurement inefficiencies would persist, and working capital would remain trapped in excess inventory.