| A supply chain consists of three parts - procurement | | | | storage and transportation of raw materials to |
| of raw materials and semi-finished products, | | | | production units, as well as the distribution of finished |
| converting them into finished products, and | | | | products through a chain of retailers and wholesalers. |
| distributing them for sale. In this context, supply chain | | | | Supply chain inventory management ensures that the |
| inventory management implies that the inventory | | | | finished products are delivered at specific locations |
| should be managed in such a way that the supply | | | | according to the pre-determined schedule. |
| chain can function without any shortages or excess | | | | Keeping in view the dynamic state of markets all |
| burdens of large supplies. | | | | over the world, supply chain inventory management |
| Supply chain inventory management starts with the | | | | has become a crucial factor in deciding the overall |
| chain of suppliers who supply raw materials and | | | | profits of a firm. Poor supply chain inventory |
| semi-finished products. A person who is managing the | | | | management could spell disaster for any company. |
| supply chain is supposed to forecast the demand and | | | | The higher the inventory investment as a percentage |
| supply of various products of the firm; the inventory | | | | of total assets of a company, the higher the damage |
| management is done accordingly. | | | | caused by poor inventory management. To ensure |
| If the forecast indicates a higher demand in the near | | | | that this doesn't happen, there are various software |
| future, greater supplies of raw material and finished | | | | tools available in market to help in supply chain |
| products have to be procured. Also, the process | | | | inventory management. They are cost-effective, |
| must be completed in time and without resulting in | | | | easy to use, and expedite various processes involved |
| cost overruns. | | | | in supply chain inventory management. Thus, they are |
| A crucial part of supply chain inventory management | | | | increasingly becoming popular. One can get |
| involves managing warehouses. It helps in the proper | | | | customized software to suit one's specific needs also. |