Failing to account for storage costs can lead to several risks, including:
Cash Flow Issues: High storage costs can strain a business's cash flow, making it difficult to cover other operational expenses. Inventory Inefficiencies: Poor management of storage costs can result in overstocking or stockouts, disrupting the supply chain. Reduced Profit Margins: Ignoring storage costs can lead to underpricing products, eroding profit margins. Scalability Challenges: Without a clear understanding of storage costs, scaling the business can become difficult and unpredictable.