Ralph Cox

25 Ways to Lower Inventory Costs

| Ralph Cox

Inventory policies drive two types of costs: operating expenses and working capital requirements. The latest “Logistics Cost and Service Report” by Establish/Herbert W. Davis and Co. indicates that while total logistics costs as a percent of sales are falling, and most individual companies have succeeded in reducing inventory levels; total logistics costs per hundredweight are increasing, as are inventory costs as a percent of total logistics cost.