---
title: "OnDemand Supply Chain News: The Math Behind Inventory Reduction"
description: "DW Morgan Company OnDemand Supply Chain News-The Powerful Math Behind Inventory Reduction: A supply chain expert explains the value of reducing inventory (hint: It's a lot more than you think)."
image: https://www.dwmorgan.com/hubfs/WAREHOUSE-EMPTY.png
---

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# On Demand News: 01/30/18

DW Morgan Company OnDemand Supply Chain News-The Powerful Math Behind Inventory Reduction: A supply chain expert explains the value of reducing inventory (hint: It's a lot more than you think).

Morgan

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### The Powerful Math Behind Inventory Reduction

30 January, 2018 // Recently, we were reminded of the game-changing value of inventory reduction as we read an article by ***Forbes* columnist and ARC Advisory Group supply chain analyst Steve Banker**.

It's intuitive that less inventory equals less cost. Still,  it can be hard to get to the actual, hard-cost savings that programs like our own Inventory On Demand™ provide. Banker breaks down the numbers in this piece from 2016 that's just as true and relevant now. 

While you might make adjustments for your specific industry, company or supply chain, you can't argue the magnitude of the optimization opportunity. It's required reading for enterprises seeking superior results and industry leadership.

[Read the story](https://www.forbes.com/sites/stevebanker/2016/03/10/the-costs-of-excess-inventory-can-be-huge/#61e20c6f5a90).

 

 

Tag(s): [Supply Chain News](https://www.dwmorgan.com/on-demand-supply-chain-blog/tag/supply-chain-news)

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