What are inventory buffers and what is their importance?
Inventory buffers are additional quantities of raw materials, semi-finished or finished products held in stock to secure the continuity of production and supply. They provide protection against market uncertainties such as sudden fluctuations in demand, logistical delays, changes in production conditions or unpredictable disruptions in the supply chain.
The role of inventory buffers in supply chain management
Properly managed inventory buffers help reduce the risk of downtime, stabilize operational processes and improve the flexibility of a company. In the food industry, they play a key role due to the variability of raw material availability, seasonality of production and the need to maintain high quality and safety standards.
They also help stabilize raw material purchase prices, reducing the impact of sudden market changes. Proper planning of buffer levels enables companies to maintain high operational efficiency while minimizing storage costs.
