By focusing on inventory management, you can achieve having less capital tied up in your inventory without compromising lead time or the risk of sold-out items. This will result in an improved RoI (Return of Investment) for your product. With the right level of collateral and sourcing strategy, you can achieve an improvement in indirect costs such as return on capital tied up. Therefore, it is important to have an appropriate inventory strategy for your particular supply chain.

In this case, an overview of some of the main elements of inventory management and how they are interconnected is presented.