What is Safety Stock?
Safety Stock Inventory quantity maintained to mitigate supply or demand fluctuations, ensuring continuous fulfillment and preventing stockouts in accordance with contractual and operational performance metrics in logistics and warehousing.
Source: Incoterms 2020 (ICC), FIATA, IATA DGR, WCO
How is “Safety Stock” Used in Practice?
The warehouse manager maintains safety stock to ensure uninterrupted order fulfillment during supplier lead time variability.
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Who Needs to Know This Term?
- Freight Forwarders
- Supply Chain Managers
- Customs Brokers
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What is Safety Stock?
Inventory quantity maintained to mitigate supply or demand fluctuations, ensuring continuous fulfillment and preventing stockouts in accordance with contractual and operational performance metrics in logistics and warehousing.
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