Why is inventory management important in the supply chain?
Inventory may be the most important asset of any business, especially for an eCommerce, and the process where all elements of the supply chain converge. Insufficient inventory can lead to dissatisfied customers, as not all demand can be met. Conversely, more stock than necessary can cause storage costs to skyrocket, not to mention the risks of stockouts and theft.
Balance is key. It is important to always have an optimal amount of stock, one that is neither too high nor too low. Companies must seek the right balance to optimize demand management.
We are currently experiencing very difficult times in the supply chain and many e-commerce vendors have been affected by stock-outs and low liquidity to meet the costs of purchasing inventory. Faced with this situation, good inventory management and demand forecasting are essential in order to obtain the necessary liquidity to deal with purchases in advance. To solve this problem there is RITMO Invoice Financing, a financial tool that allows eCommerce sellers to finance their suppliers' invoices in easy instalments, while RITMO takes care of paying the suppliers directly.