Say you run a coffee shop. You pay 2.000 € for a shipment of coffee and 100 € for shipping. That means it costs you 2.100 € to have it in inventory, right? Not quite.
There are quite a few hidden inventory management
costs that you should consider in order to truly understand the price of maintaining your business's inventory. If you run a small retail, cosmetics, pharmaceutical, or hospitality business, there's a good chance you have a significant amount of inventory on hand.
Let's take a look at 8 of the most common inventory management costs that you may not be taking into account.