Currently, it is well recognized that better logistics management can increase the competitive potential of an organization by decreasing the cost of logistics activities. Logistics costs include major expenses such as transportation, warehousing, inventory, and administration costs. This paper proposes the principle of increasing the efficiency of inventory management, including the framework for inventory and warehousing cost and ultimately decreasing the total logistics costs. The proposed framework shows that the most important concept leading to inventory reduction is balancing supply and demand volume in the immediate present, To manage the alignment between supply and demand requires accurate forecasting methods, both in time and quantity. Moreover, constraints relevant to the supply process, beginning from purchasing and delivery of raw material to the production process, must be relieved. In this paper, details of this framework, including a case study of implementation, are presented with the expectation of increasing the inventory management potential of an organization.