1. Look at the cash conversion cycle and understand the gap between purchasing inventory and converting it into profit.
2. Identify strategic areas that could benefit from greater investment by freeing up capital. 3. Discuss sourcing options with supply chain partners, starting at the factory: Check for price differences from inventory increases, shipping schedule adjustments, payment schedule flexibility and other factors. 4. Research options for where to store your inventory – overseas free trade zones may be more cost-effective than local warehouses. 5. Consider how to categorize items – sometimes products may overlap in categories, resulting in significantly different costs. 6. Check the geographical location of the supplier.It may make a difference to know whether they are near a port or in a rural setting. 7. Identify specific goals – If the priority is improving profits and reducing costs, ocean shipping will be the best option, although it will take longer.
