Inventory cost – the costs spent to store raw materials or finished products, is a significant chunk of the working capital of a business. High inventory cost weighs 20% – 25% heavier on a business's bottom line.
Supply chain managers should proactively manage inventory to boost working capital and optimize cash flow in the business. Inventory is the lifeblood of any e-commerce, F&B, and retail industry. This article will discuss six ways to reduce inventory costs and help optimize working capital.