How you can reduce inventory cost by using SCM?

You can reduce inventory costs through Supply Chain Management (SCM) by optimizing inventory levels based on accurate demand forecasting and real-time data analysis, which minimizes excess stock and stockouts. Implementing just-in-time (JIT) inventory systems can further decrease holding costs by aligning inventory delivery closely with production schedules. Additionally, enhancing supplier relationships and collaboration can lead to better terms, reduced lead times, and increased flexibility, ultimately lowering overall inventory costs.