13 Best Practice Criteria for a Sustainable and Holistic Inventory Management

13 Best Practice Criteria for a Sustainable and Holistic Inventory Management

Inventory freezes capital, often a lot, of which could be more useful in another investment. Inventory also costs money, and often enough more than the company had bargained for. For the statistically average company, a stock reduction of 20% would increase liquidity by 48% or reduce long-term liabilities by 27%. These figures show the entrepreneurial scope of liberty, the reduction of existing inventory levels may provide.

Depending on the evaluation of the various positions’ costs concerning the warehousing, the arithmetic operating costs can vary between 19% and 30% of the annual inventory costs. In very rare occasions, the arithmetical costs were less than 15%.

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