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Inventory Management Techniques Minimize Costs for Supplement Maker
A Tampa-based supplement company shares how it transformed its inventory management to reduce excess stock and avoid stockouts.
Apr. 13, 2026 at 5:09am
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Precise inventory management techniques help this supplement maker optimize its capital and avoid costly stockouts.Today in TampaA supplement manufacturer in Tampa, Florida that ships about 50,000 units per month has found success in minimizing inventory costs and stockouts by building a 'days of cover' dashboard tied to Amazon sell-through velocity. This allows the company to make more informed decisions around reorder points, production scheduling, and prioritizing products. The biggest savings came from getting accurate raw material lead times, which enabled the company to cut its average inventory holding by 22% without any stockouts on its top 20 SKUs.
Why it matters
Effective inventory management is critical for supplement makers and other manufacturers to avoid the dual pitfalls of excess inventory tying up capital and stockouts costing sales. This company's approach provides a model for how data-driven techniques can help optimize inventory levels.
The details
The supplement maker has eight brands and ships about 50,000 units per month from its Tampa warehouse. Previously, the company struggled with inventory mistakes that could tie up $30,000 in raw materials for months at a time. The breakthrough was building a 'days of cover' dashboard tied to Amazon sell-through velocity, which provides visibility into how many days of inventory the company has for each SKU based on current sales pace. This allows the company to make more informed decisions around reorder points, production scheduling, and prioritizing products. The biggest savings came from getting accurate raw material lead times, enabling the company to cut its average inventory holding by 22% without any stockouts on its top 20 SKUs.
- The supplement maker ships about 50,000 units per month from its Tampa warehouse.
- The company cut its average inventory holding by 22% last year.
The players
Tampa-based supplement company
A manufacturer of supplements across eight brands that ships about 50,000 units per month from its Tampa, Florida warehouse.
The takeaway
This supplement maker's data-driven approach to inventory management, centered around a 'days of cover' dashboard and accurate raw material lead times, provides a model for how manufacturers can optimize inventory levels, reduce costs, and avoid stockouts.
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