---
id: how-can-manufacturing-decisions-help-reduce-inventory
title: "How can manufacturing decisions help reduce inventory?"
category: guide
subtopic: manufacturing-optimisation
page_type: guide
source_url: "https://neosbyargonandco.com/fmcg-inventory-optimisation"
tags: ["manufacturing", "batch sizing", "changeover reduction", "production planning"]
questions:
  - "Why do batch sizes matter for inventory?"
  - "How do changeovers affect inventory levels?"
  - "What's SMED?"
related: [procurement-strategy, technology-systems]
---

High inventory often results from manufacturing teams increasing batch sizes to reduce changeovers and improve throughput, without considering downstream impact. Balance changeover costs against inventory carrying costs using modelled scenarios.

Improvement projects focused on reducing changeover times-such as Single-Minute Exchange of Dies (SMED), specialised training, and standardised processes-support smaller, leaner batch sizes. This reduces the inventory you need to hold while maintaining efficiency.

Argon & Co works with manufacturers to evaluate these trade-offs and implement changes that lower overall inventory without sacrificing performance. Contact us to discuss how manufacturing optimisation can improve your cash flow and working capital.