Inventory Costs

Inventory Costs

  • You lack the tools and information to optimize your purchasing.
  • You cannot forecast far into the future.
  • Your forecasts are not accurate.
  • Unknown forecasts based on history or sales projections.
  • Unknown seasonal inventory.
  • Your vendors’ performance have decreased over the past year.
  • You do not send bids to your vendors.
  • Of multi site operations (if muti site) you do not operate hub & spoke.
  • Do not have centralized purchasing.
  • Do not have visibility into all locations.
  • No items on orders.
  • On PO’s you find yourself frequently transferring inventory between locations.
  • Unknown impact it has on cost.
  • Uncertain how to determine which location to have items shipped to.
  • You cannot take advantage of vendors drop shipping items direct to your customers.
  • There is increase in shipping costs
  • You have to expedite items due to poor forecasting or promotions.
  • Uncertain how it will reflect cost.

About the Author: AJ Amjad Khanmohamed

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