Inventory, inventory, inventory...who deals with inventory?
Anyone in your company who helps you with inventory is a key player in your cash management!
Here are a few thoughts about inventory and cash:
Smaller is usually better. An Optimal amount is best.
If possible, don’t own the inventory, but keep it nearby or on hand.
Look at suppliers as key partners to help you keep investment costs down.
NOTE: The investment is the amount you buy before you use it. Cost is what you pay.
The lowest cost per unit is not always the lowest cost of acquisition.
I could keep going and going!
All of these impact your cash going out of the company.
The worst problem I've ever seen was a retailer that had over a year of inventory.
What’s the worst inventory problem you’ve seen?
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