Operations 3/19/2025 Need: Better cash flow and inventory management. Outcome: An inventory management program increased net operating profit. Understanding the situation A $30 million Florida-based automotive parts manufacturer was struggling to maintain a healthy cash flow so reached out to CLA for outsourced CFO services. In addition to a 13-week cash flow analysis, the consulting CFO suggested an ABC inventory analysis to address the manufacturer’s growing stock. Boost cash flow through better inventory management. Exploring the challenge An ABC inventory analysis categorizes inventory based on value and usage. A items have the highest value and fastest usage, B items have moderate value and usage, and C items have the lowest value and slowest usage. Comparing inventory levels to revenue values CLA’s analysis recommended: Maintaining a moderate amount of inventory to avoid overstocking and improve cash flow Having the purchasing department track components and institute cycle counts for improved inventory management Assigning one employee to oversee the A items, providing constant monitoring and accurate tracking Reorganizing the shop floor to move the A items to the front for faster processing and shipping Selling excess C items in a fire sale to reduce carrying costs By right-sizing its inventory, the manufacturer increased its net operating profit. Achieving results By right-sizing its inventory, the manufacturer increased its net operating profit. The owner also felt more confident about his business operations and was able to take a vacation without worrying about cash flow issues. Contact us Boost cash flow through better inventory management. Complete the form below to connect with CLA. MORE FROM THE CLA FAMILY © 2026 CliftonLarsonAllen. All rights reserved. "CliftonLarsonAllen" and "CLA" refer to CliftonLarsonAllen LLP. Securities and investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor, member FINRA/SIPC. CliftonLarsonAllen is a Minnesota LLP, with more than 120 locations across the United States. The Minnesota certificate number is 00963. The California license number is 7083. The Maryland permit number is 39235. The New York permit number is 64508. The North Carolina certificate number is 26858. If you have questions regarding individual license information, please contact Elizabeth Spencer . CLA (CliftonLarsonAllen LLP), an independent legal entity, is a network member of CLA Global , an international organization of independent accounting and advisory firms. Each CLA Global network firm is a member of CLA Global Limited, a UK private company limited by guarantee. CLA Global Limited does not practice accountancy or provide any services to clients. CLA (CliftonLarsonAllen LLP) is not an agent of any other member of CLA Global Limited, cannot obligate any other member firm, and is liable only for its own acts or omissions and not those of any other member firm. Similarly, CLA Global Limited cannot act as an agent of any member firm and cannot obligate any member firm. The names “CLA Global” and/or “CliftonLarsonAllen,” and the associated logo, are used under license.