Businesses can no longer remain complacent and expect that eroding profitability be simply reversed with increases in sales prices, sales volumes, or both. Cost containment is now a central focal point, with the company financial microscope being focused on the costs that are required to generate sales in an endeavor to operate financially leaner, more efficient and consequently more profitably. For product companies that require inventory holdings, one important cost measure

With competition fiercer than ever before, businesses can no longer remain complacent and expect that eroding profitability be simply reversed with a strategy of increases in sales prices, sales volumes, or both. Implementation of cost reduction strategies can allow the business to operate financially leaner, more efficient and consequently more profitably. With sustainable cost savings effectively falling directly to the bottom line, the long term financial benefits to the b

What strategies have you implemented to increase profits by reducing inventory levels? Contrary to a common misconception, the cost of carrying inventory significantly exceeds bank interest costs on the investment in inventory. Other holding or ‘hidden’ costs of inventory often not considered include: storage, equipment, labour, obsolescence, slippage, damage and insurance. The actual full cost of holding inventory, including these costs, can be many times the interest cost.