Every company strives to improve profitability. Countless hours are spent in meetings devising ways to lower operating costs while increasing sales and gross margins.
4 major inventory challenges that affect corporate profitability:
- Dead stock does not provide a return on investment.
- Money invested in excess inventory is not available for other opportunities to earn profits.
- Stock outs result in lost profits since customers’ requests for products cannot be filled.
- Inefficient warehouse operations require excessive labor and equipment.