Inventory management and supply chain performance involves managing the flow of raw materials, work-in-progress, and finished goods from suppliers to customers. It includes tracking materials through packaging and distribution with warehouses, coordinating deliveries and order fulfillment to meet product demand levels and lead times, while minimizing costs through efficient replenishment and buffer stock levels based on the type of business and products.

1. INVENTORY MANAGEMENT & SUPPLY CHAIN PERFORMANCE
RAW
MATERIALS
WORK IN
PROCESS
FINISHED
GOODS
SUPPLIER /
VENDOR
BUYER/ VENDOR
RETAIL BUYER /
END CUSTOMER
NATURE OF
PRODUCT DEMAND
TYPE OF BUSINESS
SECTOR / TECHNOLOGY
Packaging
& Distribution
Outsourced
Delivery centers
• Core products
• Ancillary products
• Partner products
• Third party
products
Warehousing costs
Order fulfillment
Lead Time
Order Realization
/ Confirmation
Seasonal, Annual, Contingent
Inventory level
FMCG, JIT, CAPITAL/ INFRA
JIT - Just In Time
FMCG – Fast Moving Consumer Goods8/14/2015 1
Original Purchase
order &
Request for
Quotation
Order
Specification
& Cash on
Returns
Net Sales Realized &
Transaction costs
BUFFER
STOCK
Replenishment
Triplicate
Purchase order
PURCHASING
ACCOUNTING
Duplicate Purchase order
Sales Invoice