What is the role inventory in supply chain management?

Inventory plays a crucial role in supply chain management as it helps to ensure that the right products are available to customers at the right time and at the right place. The main role of inventory in supply chain management include:

1. Buffer against uncertainty: Inventory helps to mitigate the impact of uncertainty in demand, lead time, and supply.

2. Meeting customer demand: Inventory allows a company to maintain stock of products to meet customer demand and avoid stockouts.

3. Smooth production process: Inventory helps to ensure a smooth production process by providing raw materials and components to production facilities.

4. Supporting sales promotion: Inventory allows a company to take advantage of sales promotions and seasonal opportunities by maintaining stock of products.

5. Cost savings: Inventory can also help to reduce costs by taking advantage of bulk purchasing discounts, reducing transportation costs and avoiding stockouts.

6. Supporting strategic objectives: Inventory can support strategic objectives like reducing lead time and increasing responsiveness to customer demands

However, it's important to consider that holding too much inventory can be costly, so the goal is to have the right level of inventory to meet the needs of the business while minimizing costs.

• Controlling and overseeing purchases from suppliers and customers.
• Maintaining the storage of stock.
• Controlling the amount of product for sale and order fulfillment.

controlling and overseeing purchases from suppliers and customers

the  role  of  innventory  in supply chain management  equal  the  role  of  fuel  to  the  engine  .

it  is  a  crucial  arm in  supply chain  .

Inventory is the key element of supply chain management.

its always required that the inventory should be available equivalent based on the sales forecast and also to maintain he safety stocks levels all the time.

Maybe the most crucial job that astock plays in supply chains is that of encouraging the adjusting of interest and supply. To viably deal with the forward and invert streams in the inventory network, firms need to manage upstream provider trades and downstream client requests

Maybe the most basic job that stock plays inventory management system supply chains is that of encouraging the adjusting of interest and supply. To viably deal with the forward and switch streams in the store network, firms need to manage upstream provider trades and downstream client requests

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With a strategic plan in place that optimizes the process of overseeing inventory, companies can achieve benefits for their supply chain that include:

• Accurate Order Fulfillment – Imagine this scenario: A customer places an order, an eCommerce brand receives the order and sends it to the warehouse only to discover that product is out of stock. Or just as bad, the eCommerce brand ships the wrong item. This isn’t an uncommon story if inventory is poorly managed. Taking the time to develop a more robust plan can help brands avoid inaccurately filled orders, high return volumes and a loss of customer base.   
• Better Inventory Planning and Ordering – It’s difficult to gauge which products are needed if there isn’t a clear way to tell what products are already stocked. If online retailers don’t properly manage the inventory they already have, the can easily overstock items – some of which might not be strong sellers. Detailed inventory management mitigates these issues, allowing warehouse managers to refresh inventory only when needed. It’s both space- and cost-effective.   
• Increased Consumer Satisfaction – Customers that shop online are eagerly awaiting their orders, and there’s nothing worse than when their orders arrive not as-described, late or damaged. When that happens, buyers are less likely to purchase from the brand again. On the other hand, good inventory management leads to orders being fulfilled more quickly and shipped out to customers faster. The enhanced processes can help eCommerce and online retail brands build a strong repertoire with consumers – and keep them coming back for more.

Managing customer and vendor relationships is a critical aspect of managing supply chains. In many cases, the collaborative relationship concept has been considered the essence of supply chain management. However, a closer examination of supply chain relationships, particularly those involving product flows, reveals that the heart of these relationships is inventory movement and storage. Much of the activity involved in managing relationships is based on the purchase, transfer, or management of inventory. As such, inventory plays a critical role in supply chains because it is a salient focus of supply chains.