Vendor Managed Inventory

Inventory management is an important part of the supply chain that includes controlling and overseeing purchases from suppliers, maintaining and storing stock, controlling the amount of product for sale, and fulfilling orders. This definition may vary from one company to another depending on the products they sell.

Pre-assembled products : assembling products is a type of inventory kitting since you are selling separate inventory when you undertake product assembly on behalf of the customers. Manufacturing and wholesale operations make use of kitting to track inventory parts and reorders. Similarly, product assembly gives the customers more options and a better service.

An inventory management concept that originated in Japan, JIT is an inventory technique used to reduce wastage. IBM's Continuous Flow Manufacturing (CFM), a lean inventory management technique, was influenced by this concept. Drop shipping has made this kind of inventory management very popular. In drop shipping, the product is sold before buying it and then the product is purchased from a third party and shipped directly to the customer.