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Meshack Awange, MKISM. On LinkedIn #Inventorymana

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Meshack Awange, MKISM. On LinkedIn #Inventorymana

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Meshack Awange, MKISM.

Meshack Awange, MKISM.’s Post

Meshack Awange, MKISM.


Supply Chain Specialist | Warehousing and Inventory Mastermind | Procurement Professional | Logistics Ent…
37m

What is the role of inventory management in supply chain?

Inventory management plays a crucial role in supply chain as it involves overseeing the flow of goods
and materials within a company's operations. It encompasses all activities related to acquiring,
storing, controlling, and utilizing inventory in order to meet customer demands while optimizing costs
and operational efficiency. Here are some key roles of inventory management in supply chain
management:

1. Demand Fulfillment: Inventory management ensures that adequate quantities of products are
available to meet customer demand. By maintaining optimal inventory levels, businesses can avoid
stockouts, backorders, and customer dissatisfaction, thereby enhancing customer service levels.

2. Cost Optimization: Efficient inventory management helps optimize costs associated with inventory.
By balancing inventory levels, businesses can minimize carrying costs, such as warehousing, storage,
and insurance expenses, as well as reduce the risk of inventory obsolescence and spoilage.

3. Supply and Demand Coordination: Effective inventory management enables coordination between
supply and demand. By accurately forecasting customer demand and aligning it with production and
procurement schedules, businesses can prevent excess inventory or shortages and achieve better
synchronization in the supply chain.

4. Production Planning and Efficiency: Inventory management supports production planning by


ensuring the availability of raw materials and components for manufacturing processes. By
maintaining optimal stock levels and implementing just-in-time (JIT) or lean inventory practices,
businesses can improve production efficiency, reduce lead times, and minimize waste.

5. Supplier Relationship Management: Inventory management involves managing relationships with


suppliers. By collaborating closely with suppliers, businesses can establish efficient replenishment
processes, negotiate favorable terms, and implement vendor-managed inventory (VMI) systems,
leading to better supplier performance and reduced supply chain disruptions.

6. Performance Monitoring and Analysis: Inventory management provides valuable data for monitoring
and analyzing supply chain performance. By tracking key inventory metrics, such as turnover rate,
holding costs, and stock accuracy, businesses can identify areas for improvement, optimize inventory
policies, and make informed decisions to enhance overall supply chain efficiency.

Overall, effective inventory management within the broader context of supply chain management
enables businesses to strike a balance between satisfying customer demand, minimizing costs, and
optimizing operational performance throughout the supply chain.

#inventorymanagement #supplychain #warehousemanagement

5 · 1 Comment

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Elias Muriithi 11m


Welcome Here. Feel free to interact. Bachelor of Purchasing and Supplies Management at Taita Taveta Uni…

On point!

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