What could better inventory management be worth?
Estimate the potential annual benefit from reducing stock, lowering carrying costs and recovering lost sales. Enter a few figures to see a one-off cash release and a recurring annual benefit, before project costs.
Frequently asked questions
Qualified guidance on inventory KPIs, formulas and this estimator.
How is safety stock calculated?
Safety stock depends on demand variability, lead-time variability and your target service level. A formula like (max daily sales × max lead time) minus (average daily sales × average lead time) gives a starting point, but it does not guarantee availability. The right buffer depends on your supplier reliability, demand patterns and the cost of holding extra stock versus the cost of a stockout.
What is a good inventory turnover ratio?
Inventory turnover varies widely by industry, product mix and business model. Rather than targeting a generic benchmark, compare your turnover against your own historical performance and the working capital tied up in stock. The aim is enough stock to meet service targets without carrying unnecessary excess.
What does OTIF mean?
OTIF stands for On-Time In-Full. It measures whether a supplier delivers the expected product in full at the expected time. On-time means by the agreed delivery date; in-full means the full quantity ordered. Split deliveries, partial shipments and early or late arrivals can all affect OTIF, and the rules for what counts as on-time should be agreed with each supplier.
How accurate are these estimates?
Results are indicative estimates based on your inputs, not a quote, guarantee or commitment. Actual outcomes depend on your operations, data quality and market conditions. A discovery conversation helps validate the figures against your real estate and data.
What does this estimator include and exclude?
The basic estimate includes a one-off stock cash release, an annual carrying-cost saving and a potential recovered gross profit. It does not deduct additional fulfilment or variable costs unless you add them in the business case refinement. Stock cash release is shown separately and is not added to the recurring annual benefit. Year-one cash impact and payback are not calculated.
What sits behind better inventory management with BC4?
BC4 connects your stock, sales, finance and fulfilment data into one operating model, so replenishment, availability and reporting work together. That joined-up picture is what makes the savings achievable rather than theoretical.