Meaning ● Inventory Optimization, within the realm of Small and Medium-sized Businesses (SMBs), is a strategic approach focused on precisely aligning inventory levels with anticipated demand, thereby minimizing holding costs and preventing stockouts. This process commonly uses software or automated processes. The practice seeks to balance availability and cost-efficiency in inventory management, crucial for sustaining growth in smaller enterprises. ● A principal objective involves leveraging data analytics and forecasting techniques to refine inventory decisions. By integrating these strategies, SMBs can automate aspects of their inventory control, gaining better visibility of stock movement and order management. ● Effective inventory optimization directly supports increased profitability, since less capital is tied to warehousing costs.
