What are the Benefits of Safety Stock in Business?

[Suba]

Inventory is one of the important business assets that must be managed properly, especially to prevent stock shortages or inventory or even excess stock that requires good storage and maintenance costs. As an illustration, safety stock is extra inventory that must be stored to anticipate shortages, especially when demand is high.

 

[Augusta]

Safety stock acts as a buffer against unexpected surges in demand or delays in supply, ensuring that businesses can fulfill orders even when faced with unforeseen circumstances.