Inventory Cost Meaning in Logistics

Inventory cost refers to the expenses associated with managing and holding inventory, including labour costs, warehousing, and paperwork.

Effective inventory management is critical to reducing inventory costs and optimising warehouse operations. Inventory cost management involves tracking expenses associated with holding inventory and reducing unnecessary expenses. This includes optimising inventory levels to reduce holding costs, improving supply chain visibility to avoid stockouts, and implementing efficient inventory management systems to reduce paperwork and labour costs. Effective inventory cost management can help companies improve profitability and stay competitive.