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Concepts: Inventory Unit Cost Inflation (30 min)

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Overview In this course, you will learn how to identify, quantify, and analyze the impact of inflation on your inventory unit costs and use that information to save money in vendor negotiations. Let's face it - both management and finance teams get busy. Unfortunately, this means they can forget to track the impact of inflation on their inventory costs. They miss the gradual uptick in their inventory costs over time. Even though the average cost of a unit of inventory might only increase by a few percent per year (maybe unnoticeable to the naked eye), these small cost increases can compound year over year to seriously erode gross margins. For some clients of mine, they had not looked at inventory cost increases for years before we looked at them together. This analysis is extremely powerful and can yield serious cost savings when applied to vendor negotiations. Like everything in business... everything is negotiable! Time (~30 minutes)

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