The Bee Hive

Strategies For Trimming Inventory Carrying Costs

Each year, Asian companies spend an estimated $400 billion on logistiocs services. While most of that money is well spent, some 40 percent of it isn’t adding value becaue it falls under the line item of inventory carrying costs. In logistics terms, inventory carrying cost is the money a manufacturer has tied up in raw materials, work in progress, and finished goods, which includes materials and products in storage, transit, and production.