Inventory Optimization / Fixed-Fee Diagnostics

Find the cash and margin trapped in your inventory.

Arcos Group helps manufacturers and distributors release working capital and improve service levels through fixed-fee inventory diagnostics and targeted implementation support — using SKU-level demand and inventory data, not guesswork.

Complimentary 30-minute Inventory Management Maturity Assessment before any commitment.

The Problem

Cash is sitting on your shelves — and most teams can't see where.

Inventory is usually the largest working-capital line on the balance sheet, and the one with the least visibility. Excess stock ties up cash. Understock risk quietly erodes service levels and customer trust. Stocking policies are set by habit, not by data. And by the time it shows up in the numbers, the quarter is already over.

Most operations teams know something is wrong. Almost none can say exactly which SKUs, which locations, or how much cash is on the table — because the analysis requires SKU-level demand history and inventory data most ERPs weren't built to surface cleanly.

  • 3 Common failure modes: excess stock, understock risk, and misaligned stocking policy — usually all three at once
  • 1 Balance sheet line item — inventory — that ties up more cash than almost any other, with the least amount of scrutiny
  • 0 Guesswork. Findings are built from your own SKU-level demand and inventory data, not industry rules of thumb

Quick Calculator

Quickly calculate the impact of excess inventory in your situation.

Enter a few numbers and see what excess inventory could be costing you right now — then get a real, diagnosed number from the estimator below.

See your own number 60 seconds
Stock position vs. target +10%
On target+50%
Cost of capital 15%
0%30%
Cash trapped in excess inventory $0
Annual cost of capital on that cash $0
Inventory turns, current → target 0.0x 0.0x

Illustrative, based on the figures you enter. Your real number is diagnosed, not guessed — see the estimator below.

Scope Estimator

Get a ballpark engagement scope in real time.

Move the sliders to match your business. This maps to the same tiers described below — the exact scope is always confirmed on a fit call.

10,000
50075,000+
3
125+
Recommended tier

Cash Scan

Identify excess inventory, understock risk, and cash release opportunities using SKU-level demand and inventory data.

Indicative fee $15,000
Timeline 2–3 weeks

Fixed fee, based on typical scope for this SKU range.

Start the conversation

Worked Example

What a Cash Scan actually finds.

A simplified, illustrative walkthrough of how a diagnostic breaks down inventory value across a client's SKU base.

Total inventory value analyzed $42.6M 18,400 active SKUs · 4 distribution locations
Healthy stock — 71% Excess / slow-moving — 19% Understock risk — 10%
  • Discontinued / superseded SKUs$2.4M
  • Overstocked vs. 90-day demand signal$3.9M
  • Duplicate stock across locations$1.8M
  • SKUs below reorder point, high demand variability210 SKUs
  • Single-source SKUs with lead-time exposure84 SKUs
  • Locations with recurring stockouts (last 90 days)46 SKUs
  • Immediate release: obsolete / superseded SKUs$2.4M
  • Phased release: overstock drawdown, 2–3 quarters$3.2M–$4.8M

Illustrative example based on a representative client engagement. Figures are directional, not a guarantee of results.

How It Works

From first call to savings realized.

Engagements range from a focused Cash Scan to scenario modeling and implementation support that turns inventory opportunities into buyer-level action plans, dashboards, governance routines, and savings tracking.

  1. 01

    Complimentary fit assessment

    A free 30-minute Inventory Management Maturity Assessment to understand your data, systems, and where cash is likely trapped.

  2. 02

    Data & quality review

    We pull SKU-level demand history and inventory data and run a data quality review before any findings are built.

  3. 03

    Diagnostic — Cash Scan

    Excess inventory, understock risk, and cash release opportunities are identified and packaged into a board-ready inventory health report.

  4. 04

    Scenario modeling — Cash Scan Plus

    SKU segmentation feeds up to 5 stocking policy scenarios, each modeled for its cash impact — so you can see what different strategy changes are actually worth before committing to one.

  5. 05

    Implementation Sprint

    Findings become buyer-level action plans, governance routines, and dashboards — with weekly working sessions and PMO support to realize savings.

Service Tiers

Pick your starting point.

Every engagement starts with a Cash Scan. Move further only when the diagnostic shows it's worth it.

What's included Cash Scan $15,000 2–3 weeks Most popular Cash Scan Plus $25,000 4–6 weeks Diagnostic + Implementation Sprint Custom 3 months+
Inventory management maturity assessment
Data quality review
SKU-level demand forecast
Excess inventory identification
Service risk & understock identification
Cash release opportunity assessment
Board-ready inventory health report
Scenario modeling
Generate new ABC SKU segmentation
Cash release scenario modeling
Service level / stocking policy scenarios
Recommended stocking policy by SKU group
Implementation
Implementation roadmap
Savings realization support (PMO)
Implementation governance framework
Weekly working sessions with buyer/planning team
Inventory health dashboard
Start the conversation Start the conversation

What You Get

Every engagement ends with something you can act on.

Cash Scan
📋

Board-ready inventory health report

A clear, presentable summary of excess inventory, understock risk, and cash release opportunity — built for a leadership or board audience.

Implementation Sprint Adds
🗺️

Buyer-level action plans

Findings translated into specific, assignable actions for your buying and planning team — not just a report that sits on a shelf.

⚙️

Governance & PMO support

An implementation governance framework and PMO-style savings realization support to keep the work on track after the diagnostic ends.

📈

Inventory health dashboard

A living view of inventory health, not a one-time snapshot.

📅

Weekly working sessions

Direct, recurring time with your buyer and planning team to keep momentum and resolve blockers fast.

Why Arcos Group

Corporate transformation is the whole practice, not a side offering.

Arcos Group focuses exclusively on corporate transformation. We support the full lifecycle of a transformation program — from diagnostics and bankable plan development, to interim leadership, execution support, and practical technology solutions.

Inventory optimization engagements are built on the same discipline: SKU-level data, not assumptions; fixed-fee scopes, not open-ended hours; and a bias toward findings your team can actually implement.

01

Diagnostics & bankable plans

Findings are built to withstand board and lender scrutiny, not just internal review.

02

Interim leadership

We can sit inside your team during implementation, not just hand off a deck.

03

Execution support

Governance routines and PMO support so savings are realized, not just identified.

04

Practical technology

Dashboards and tools sized to your team, not a multi-year platform rollout.

FAQ

Questions we hear from CFOs and operations leaders.

SKU-level demand history and inventory data — typically exports from your ERP or WMS covering historical demand, on-hand inventory, lead times, and location. We run a data quality review as part of every engagement, so imperfect data is expected and accounted for, not a blocker to starting.

The Cash Scan runs 2–3 weeks from kickoff to your board-ready inventory health report. Cash Scan Plus builds directly on those findings and adds 4–6 weeks total for SKU segmentation and stocking policy scenario modeling. Implementation Sprint timelines run 3 months or more, scoped around your rollout pace once the diagnostic and modeling are done.

No system integration is required for the Cash Scan or Cash Scan Plus — we work from data extracts, not a live connection. Implementation Sprint engagements may involve building a dashboard, which is scoped and agreed with your IT team up front.

Yes. Data is used solely for your engagement, handled under a mutual NDA, and is never shared, benchmarked externally, or reused for other clients without your written consent.

Cash Scan and Cash Scan Plus are fixed-fee engagements scoped before you sign anything, based on your SKU count and location footprint. Implementation Sprint work is custom-quoted because scope and duration depend on what the diagnostic finds and how much execution support you want — that fee is agreed before the sprint begins, not billed hourly as you go.

You keep the board-ready inventory health report regardless of outcome, and you'll have a clear, data-backed answer either way — which is itself valuable when the alternative is not knowing. In practice, most manufacturers and distributors carry meaningful excess or at-risk inventory; the diagnostic quantifies exactly how much and where.

The Cash Scan is scoped specifically for lean teams: a 2–3 week fixed-fee diagnostic with no dedicated project team required on your side. Start with the complimentary 30-minute maturity assessment and we'll tell you honestly whether a full Cash Scan makes sense yet.

Get Started

Can we help you achieve your transformation objectives?

Let's get in touch. Start with a complimentary 30-minute Inventory Management Maturity Assessment — no commitment required.