Supplies and inventory are important assets for any business, but understanding the difference between them can be confusing. Supplies refer to items that a company buys or acquires from an external source and uses within a short period of time. Inventory, on the other hand, is a collection of products that a company has in stock for sale. They are purchased and stored for future use. When supplies run out, they must be replaced, whereas inventory is kept in stock and replenished as items are sold. By taking the time to understand the distinction between supplies and inventory, businesses can better manage their resources and make sure they have what they need when they need it.