The smaller your inventory, the easier it is to manage. Whatever way you spin it, keeping goods in stock costs money. Not only does buying products to keep them in stock swallow up funds you could otherwise spend, but warehouse space itself is not cheap, either. On top of that, inventory can become outdated or go out of fashion. At the same time, it is worth remembering that bigger orders can get you bigger discounts.
Before optimising your inventory levels, calculate what is the best balance for you between purchasing advantages and inventory costs. If necessary, sell some stock at a slightly lower price to make room in the warehouse and improve your liquidity. A digital inventory system helps you manage your stock smartly.
No more warehouses
Another option is to end stocking inventory in a warehouse altogether. Without a warehouse, you will have no inventory and therefore no inventory risk. Getting rid of your inventory saves space and money. To get your products to your customers, you can rely on Just-in-Time delivery and dropshipping instead.