Holding Costs: The Hidden Expenses of Inventory – 1st Ed. 29 pages

This publication is part of  The SCM Blueprint Short Papers Series.

Holding costs, often referred to as carrying costs, represent the hidden expenses associated with maintaining inventory. Many businesses focus primarily on procurement and sales without fully appreciating the cost implications of storing unsold goods.

This paper aims to provide a comprehensive understanding of holding costs, highlighting their impact on overall business performance. Readers will gain valuable insights into calculating, managing, and optimizing these costs to improve financial efficiency and operational effectiveness. By exploring the various components and factors influencing holding costs, readers will learn how to identify cost-saving opportunities, implement best practices, and leverage modern tools and technologies to streamline inventory management. Whether you are a business owner, supply chain manager, or financial analyst, this paper will equip you with the knowledge and strategies needed to uncover the hidden expenses of inventory and enhance your company’s profitability.