A growing business likely means increasing demand and higher overhead costs. Inventory can be costly, especially when you account for warehousing, damaged items and replacements, spoilage and quality control.  Here are some of the best ways to free up capital and minimize inventory management costs: Avoid overstocking: Instead, invest in trying out new products and looking for new opportunities to grow your business. Get rid of your deadstock: Return obsolete inventory to the supplier, bundle it together and sell it at a discounted price or donate it to free up space in your warehouse. Reduce supplier lead time. By reducing the amount of time between shipments, you’ll be able to reduce how much stock you have on hand. Choose better inventory management software: This can help centralize control of your inventory and automate processes.