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Inventory Accuracy Cash Flow: Is Your Stock the Problem?
A full warehouse doesn't guarantee a healthy bank balance A distributor I know was convinced they had a cash problem. Payables piling up, line of credit getting thin, the usual pressure. What they actually had was $340,000 in finished goods sitting in three different rack locations that their WMS thought was either sold or not yet received. Real product, real value, invisible to finance. This happens more than people want to admit. The balance sheet says you're inventory-rich
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Where Do Hidden Inventory Costs Come From?
The price on the shelf is built layer by layer — from raw materials and labour to logistics, margins, and taxes. Most people who work in warehouses know roughly what a product costs. They see the PO, they know the unit price, they've got a general sense of margin. But that number on the PO is not the price of the product. It's the starting point. By the time a unit is received, putaway, counted, picked, replenished, maybe miscounted and recounted, and finally shipped — it has
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food distribution
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