What is the best method for keeping inventory costs low for a contractor?

Planning material delivery as close to use as possible is considered the best method for keeping inventory costs low for a contractor because it minimizes the amount of inventory that must be stored on-site, reducing associated holding costs. This approach helps ensure that materials are fresh, relevant, and suited to the current phase of a project, which can lead to better cost management and reduced waste. Additionally, it allows for more efficient use of space and resources since materials arrive just when needed, rather than sitting idle.

By implementing this strategy, contractors can avoid the financial burden of overstocking materials that may become obsolete or damaged while in storage. Furthermore, close coordination with suppliers can lead to improved cash flow management and reduced risk of material shortages during critical phases of construction.