Delayed payment from suppliers: The later you pay, the higher the penalty & the higher the costs of your goods. Supplier cancels contract - need to find a new supplier - new supplier may be expensive.
Stock management: This will cut down the spending on stock but may leave the business vulnerable to not having stocks available to meet demand. There needs to be enough stock to meet demand. Not able to meet sudden demand as limited stock in the warehouse but random increased demand.
Reduce overhead spending: Fixed: move further = cheaper rent but longer to distribute to customers.
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