Supply Chain Planning Begins With Inventory Planning

Supply chain planning begins with inventory planning in procurement, which is the practice of efficiently managing a company’s stock of supplies and materials by optimizing their location, availability and cost. The goal of inventory planning is to ensure that enough raw materials, components, finished products and other items are available when they’re needed to meet customer demand while minimizing the total cost of ownership over time. Strategic inventory planning helps to reduce costs and ensure customer satisfaction by keeping warehouses stocked, avoiding shortages or excess inventory, and responding quickly to changes in market conditions or customer needs.