Procter and Gamble (P&G), a US-based multinational, plans to cut the levels of inventory carried in an effort to sustain its margins.

However, the reduction level is yet to be determined.

To achieve this goal at the operational level P&G intends to reduce its inventory locations. For example, at major production bases such as Lima, Ohio, the company plans to shut down seven of its eight warehousing and depot facilities for its laundry business.

At the same time, the speed of stock turnaround has increased from weekly deliveries to twice daily deliveries. P&G estimates that in the case of Lima this could reduce inventory levels by as much as 80 per cent, reports Transport Intelligence.