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This master’s thesis considers wholesale company’s inventory value reduction and its effects to the operative working capital. The aim is to reduce inventory value by Enterprise Resource Planning System SAP in a controlled manner and without reducing the service level. This thesis contains a theory chapter of inventory management, operative working capital and benefits of ERP sys-tems in inventory management. These theory chapters are applied to practice, and the result is a lower inventory value in the case company. This releases more operative working capital to other more profitable subjects. With more accurate sales forecasts and by using SAP in the supply chain management average stock value can be reduced by 700 k€ which, in turn, reduces Cash Conversion Cycle by 7 days.