How Much Does Inventory Cost: What Makes Up the Price?

Inventory Cost: What Determines the Price?

Business owners in Uzbekistan often ask: "Why does inventory cost so much? Can it be cheaper?"
To answer, let's break down how inventory pricing is formed and what it depends on.

1. Warehouse size and complexity

• Area and SKU count. The bigger the space and assortment, the more people and time are needed.
• 500 m², 2,000 SKUs — one day for a 4-person team.
• 5,000 m², 20,000 SKUs — several shifts and extended team.
• Multi-level storage (racks, mezzanines, cold rooms) requires more time and equipment.

2. Preparation and organization

• Labeling cells and goods. Without it, time is spent on organizing.
• Address-based storage reduces counting time by 30–40%.
• Equipment and materials: scanners, TSDs, labels, seals, consumables.

📌 Example: In Samarkand, one day was spent labeling cells before inventory, increasing budget by 15%.

3. Number of personnel

• Larger team — faster work, higher cost.
• Smaller team stretches project, larger delivers fast result but more expensive.
• Sometimes paying for speed is cheaper than halting warehouse 2–3 days.

4. Timing

• Day shift — cheaper, interferes with operations.
• Night or weekends — more expensive (1.5–2x), but no downtime.

📌 Example: Tashkent distributor did inventory at night; cost increased 20%, but avoided shipment stops and losses.

5. Service format

• One-time: full count, reports, adjustments.
• Cyclical: regular counts (monthly/quarterly), cheaper per count.
• Audit + inventory: more expensive, but business gets optimization plan.

6. Additional factors

• Seasonality: holidays and peak times cost more.
• Confidentiality (NDA, increased control).
• Urgency: 24-hour express is more expensive.

Inventory cost in Uzbekistan (guidelines)

• Small warehouse (up to 1,000 SKUs): 7–10 mln UZS.
• Medium (5,000–10,000 SKUs): 20–40 mln UZS.
• Large center (20,000+ SKUs): custom calculation.

💡 Preparation and address-based storage can reduce budget by 15–25%.

How to reduce cost without losing quality

• Prepare warehouse in advance.
• Use address-based storage.
• Conduct inventory in a "quiet window" or at night.
• Order a yearly service package instead of one-time counts.

FAQ Can we do inventory with our own staff?
Yes, but risk of errors is higher. External teams are faster and more objective.

Why are prices different?
Low price = minimal preparation and control.

One-time or regular service?
One-time solves "here and now". Regular gives systematic control, cheaper in the long run.

Conclusion Cost depends on warehouse size, preparation, timing, and service format. It's an investment that pays off by reducing losses and preserving margin.

Inventory.uz offers flexible formats: from 24-hour express to regular outsourcing — with transparent budget and predictable results.