Eleven Quick Tips for Reducing Costs by Reducing Inventory Balances

By Wayne H. Smith Storing inventory creates expenses for insurance, staff, space, utilities, and financing. The best way to reduce the cost is to reduce your inventory balances. Here are some key steps to consider before taking action on driving down working capital: Establish an organizational structure. The CEO or COO should lead a team to manage the process. Reducing working capital is a strategic business issue and should not be left to finance to manage; Define "operating working…