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IDAS - Weekly Blog Post 10 October 2020

Own Your Inbound Suppliers Shipments

The costs of excess inventory can be huge: These may include freight in, storage costs, insurance expenses, external or internal theft, obsolescence, spoilage, and taxes. Studies have shown that the annual additional cost of holding excess inventory can be 25 percent to 32 percent.The bottom line: The more inventory you have on hand, the greater the amount of the business’ capital is tied up. One way to control excess inventory and try to optimize it is by eliminating early supplier's shipments.

We suggest the following approach for controlling suppliers inbound shipments:.

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