– Lower inventories. High inventory costs are the most significant hidden logistics expenses. With production in Asia or other overseas locations, companies typically carry relatively high levels of inventory near the target market to guard against supply chain disruptions such as storms at sea, strikes at ports, and other issues. This approach also increases risks that the inventory will lose value if prices fall or the product loses popularity in the market place. In a challenging economy, lower inventories help companies reduce costs and adjust more efficiently to changes in customer demand.