What is the primary focus of supply chain management?

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The primary focus of supply chain management is indeed on forecasting and inventory management. This area is crucial as it ensures that the right amount of product is available at the right time and place, thereby meeting customer demand while minimizing costs.

Forecasting involves predicting future customer demand based on historical data and market trends, allowing businesses to prepare adequately. Inventory management complements this by controlling stock levels, ensuring that there is enough inventory to meet demand without overstocking, which can lead to increased holding costs and potential waste, especially in industries where products have a limited shelf life.

These elements work together to create a seamless flow of goods from suppliers to customers, optimizing operations on multiple levels, including efficiency and responsiveness. This is foundational to effective supply chain management, distinguishing it from other functions like marketing strategies, financial audits, or human resource planning, which, while important, do not focus primarily on the intricacies of managing the flow of goods and services.

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