Charlie Barnhart has written a very thought provoking post here stating that inventory is not an asset.  This is a great topic given today’s market forces and something I’ve written about several times (see here, here and here).  Charlie has actually written a paper on this topic that you can access here.

While accounting is unlikely to change their categorization of inventory as an asset, supply chain management professionals increasingly realize that inventory is more a liability than asset.  The pace of change today is making that a reality for everyone involved in supply chain management.  Charlie has some great insights on the topic based on his years of experience in the contract manufacturing market, where inventory plays a central role.

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Tags: Inventory
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