Common Unnecessary Costs: Inventory

The conventional purchasing system incurs unnecessary inventory costs. Most companies purchase 3-6 months supply per order. This is inventory which sits on the shelf waiting to be assembled into a billable sale. Depending on the cost of money, this inventory can cost ½% / month to 1% per month and can translate to several hundred to thousands of dollars of cost that is sitting on the shelf. That is a waste of working capital and profit.

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