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