The investment in inventories is often significant and bears several cost components. Among those are obsolescence, environmental conditions, deterioration, interest expense, real estate costs, theft risks, and others. Understanding how to maximize inventories and manage risks associated with them is key in optimizing financial performance.
We evaluate controls over inventory (both physical and procedural). We can identify areas where improvements can and should be made to minimize loss and risk. Key Performance Indicators (KPIs) are often a standard by which metrics can be derived; however, we go much deeper in identifying potential risks and then develop appropriate solutions.