Safety Stock from Procurement Lexicon

Safety stock, also known as buffer stock or buffer inventory, is a fundamental concept in procurement and supply chain management. It refers to the extra inventory or stock held by a company beyond its expected demand requirements. This surplus inventory acts as a cushion to mitigate the risk of stockouts due to unexpected fluctuations in demand, supply disruptions, or delays. Safety stock serves as a precautionary measure to ensure that products or materials are always available when needed.