Inventory Management and Supply Chain Management
Inventory management is a component of supply chain management in that a supply chain’s reason for being is the movement of inventory—either delivering raw materials and subcomponents to manufacturers or fulfilling orders by delivering finished goods to consumers. In addition to inventory management, supply chain management also covers activities such as planning, logistics, order management, and procurement.
Managing Suppliers to Optimize Inventory Management
Choosing the right suppliers is the responsibility of the procurement function, but suppliers can also have an impact on inventory management. For example, achieving just-in-time availability depends on having reliable and qualified suppliers who can meet timelines for just-in-time delivery. If they can’t, production ceases.