How can identifying slow moving items help reduce warehouse costs?
There are considerable costs associated with storing inventory. By eliminating overstocks on unpopular goods, you can reduce warehousing expenses. Being able to keep just the right amount of inventory on hand, allows you access to money that would otherwise be tied up in maintaining unnecessary stock. There is a time-value to money. Simply put, this means that money is better spent in the future and rather invested in the present elsewhere, so that it can generate stronger interest than it would taking up warehouse costs.
