Increase market responsiveness Improved inventory visibility allows you to see market trends more clearly. When it’s obvious that more of your product is moving, you can quickly ramp up production to meet customer demand. Being a first mover on this increased demand provides you with a unique competitive advantage.

On the flipside, if products are moving slower, reducing production can prevent excess inventory and save you wasted costs in the long run. Resolve unpredictable scenarios Although companies often outsource parts of their production, they cannot abdicate responsibility for inventory when it’s out of their hands.

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