Supply is the quantity of product that a business can offer to its customers at a particular point in time. In retail, it is the inventory that the merchant holds. In dropshipping, it is the stock that the supplier can guarantee to the merchant. “Supply management” is the process of researching, sourcing, and maintaining the necessary supply.
At the most basic level, the term “supply and demand” refers to the market’s needs and the ability to meet them, for example, there are more buyers for a toy than the available stock. Such a scenario affects not only unit price but also the “supply chain management,” which impacts costs and workflow (e.g., customers receiving orders on time). Supply chain management can be optimized through technology, good supplier relationships, inventory optimization, tracking and reviewing key performance indicators, and considering the total cost of supply over its price.
