Your cash is sitting on a shelf.
The challenge
Cash tied up in obsolete stock. Shortages that force firefighting. Forecasts nobody trusts. These aren’t separate problems. They’re symptoms of one thing: a SIOP process that isn’t mature enough to keep planning, purchasing, and demand in sync.
How this affects your team
| Persona | Pain point | Valverus capability fit |
|---|---|---|
| CFO | Cash tied up in inventory, poor working capital turns, obsolete stock | Working capital diagnostics, inventory segmentation |
| COO | Shortages, firefighting, poor supply-demand alignment | Forecast and supply alignment, SIOP maturity review |
| Supply Chain Leader | Weak forecast accuracy, bad planning parameters, low inventory accuracy | Planning parameter review, inventory accuracy improvement |
| PE Managing Partner | Slower cash release, muted EBITDA impact, missed value-creation windows | SIOP maturity review, working capital diagnostics |
Root causes
Miscalculated planning parameters. Disjointed SIOP alignment across functions. Forecasts built on instinct instead of data. Inventory policies that haven’t been segmented by what actually matters: cost, velocity, criticality.
Our approach
Valverus helps leadership teams release cash from inventory, improve working capital, and increase cash flow, while simultaneously protecting service levels, by improving, automating, and optimizing lifecycle management, planning discipline, purchasing behavior, inventory policies, and supply-demand alignment across the end-to-end supply chain.
Success case
Cutting Air Freight 30% and Saving $800K Through Inventory Optimization Across a Regional Distribution Network
Inventory structures across multiple regional and centralized warehouses were inefficiently organized. High and misaligned inventory levels at the wrong locations led to recurring air freight shipments, long lead times, and increased logistics costs. These are the same planning-parameter and segmentation gaps described above.
Valverus analyzed material movement and replenishment flows across all warehouse levels, applied ABC-XYZ inventory segmentation to identify redundancies and imbalances, rebuilt minimum and target stock levels by location, and aligned replenishment strategy between central and regional warehouses using push/pull logic, with KPI monitoring put in place for early intervention going forward.
SIOP Maturity Scorecard
Use this short diagnostic test to show where your planning process might be losing cash, benchmarked against manufacturing peers.
Frequently asked questions
Most manufacturers with immature SIOP processes have 15–25% more inventory than necessary. Release timelines depend on inventory segmentation and lead times, but early cash release from obsolete and slow-moving stock often begins within the first 60–90 days of a working capital diagnostic.
Shortages usually trace back to disjointed SIOP alignment. Planning, purchasing, and supply are optimizing separately instead of against one shared forecast and set of planning parameters.
Planning parameters that were set once and never revisited, combined with forecast accuracy that isn’t measured or fed back into the planning process, are the most common causes.
SIOP maturity is one of the fastest, lowest-risk levers available in a hold period. Cash released from inventory shows up on the balance sheet directly, independent of any margin or growth initiative.
Obsolescence typically stems from weak forecast accuracy, infrequent inventory policy review, and a lack of segmentation. Slow-moving and fast-moving items get managed with the same rules.
Find out which layer is actually costing you value.
A 30-minute diagnostic maps your organization against VTOS and shows exactly where the chain breaks.
Book the diagnostic