The Do’s & Don’ts of Safety Stock Management

In this article, I provide a practical guide to building up and managing safety stocks, drawing from my hands-on experience with a high-tech client. I emphasize the importance of aligning statistical models with operational realities, and share insights into navigating the complexities of different safety stock types— statistical, factory-requested, and strategic—through a clear, well-maintained policy. I address practical elements that made the implementation both sustainable and successful, such as cross-functional coordination, effective communication, and managing ...