Reducing inventoryQuestion When can having inventory be a bad thing?
Answer When you have too much. Excess inventory can hurt your company in several ways.
- It ties up cash, which could be used more productively in paying down debt or pursuing alternative opportunities. - It increases expenses by taking up expensive physical space. - It can increase your insurance and taxes. - It exposes you to risks associated with shrinkage, obsolescence, and damage related to excess handling, and other losses.
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Editor, Streetwise Small Business Book of Lists
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