FEBRUARY 2025

February 2025

Good Morning, Good Evening, and Goodnight,

Welcome back to another market update, in this journal I’m going to talk about what inventory is and how it plays an important role in supply chain. The sole purpose for me to do this is to spark a conversation with you in the future and maybe gain perspective of your thoughts and strategies. 

“Wealth is not about having a lot of money; it’s about having a lot of options.”-Chris Rock

In this journal I’m going to Daiiv into supply chain updates, market insights, and more into innovations. This is the second journal for 2025, and I’m excited to share that all my journals are published on my personal website: Daiviksuresh.com

A direct link to all my journals is here: CLICK ME!

Warning: Market talk ahead. This is not financial advice; most investments carry a risk of losing some or all of the invested capital.

Inventory Management

The backbone of any supply chain. It involves overseeing the flow of goods from manufacturers to warehouses, and ultimately to the end customer. But it’s not just about storing products—it’s about having the right products, in the right quantities, at the right time, and in the right place.

Demand planning

Ensures that inventory levels align with market needs. Accurate demand planning is crucial because it helps businesses avoid two costly scenarios:

1. Overstocking: Excess inventory ties up capital, increases storage costs, and risks obsolescence.
2. Understocking: Insufficient inventory leads to stockouts, missed sales opportunities, and unhappy customers.

Innovating Inventory Mangement

The supply chain landscape is evolving rapidly, and innovation is driving significant changes in how businesses manage inventory. Here are some ways to stay ahead of the curve:

1. Artificial Intelligence (AI) and Machine Learning:
   AI-powered tools can analyze vast amounts of data to predict demand patterns, identify trends, and even suggest optimal reorder points. Machine learning algorithms continuously improve forecasts, making them more accurate over time.
2. Internet of Things (IoT):
   IoT devices, such as smart sensors and RFID tags, provide real-time tracking of inventory across the supply chain. This enhances visibility, reduces the risk of loss or theft, and ensures timely replenishment.
3. Dropshipping and On-Demand Manufacturing:
   These models eliminate the need for businesses to hold large amounts of inventory. Instead, products are manufactured or shipped directly to customers as orders come in. This reduces holding costs and aligns inventory with actual demand.

Some Key Players Using This Technology:

IBM Sterling

Blue Yonder 

Oracle Fusion Cloud

Inventory management is more than just counting stock—it’s a strategic function that impacts every aspect of the supply chain. By integrating demand planning forecasts and adopting innovative practices, businesses can optimize inventory levels, reduce costs, and deliver exceptional customer experiences. If you would like to contact me, please navigate through my website, and find the best way to connect!  

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Sources

IBM Sterling

Blue Yonder 

Oracle Supply Chain Management Cloud

Manhattan Associates

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Written By: Daivik Suresh