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Whether you are a retailer, manufacturer or distributor, inventory management is essential to ensure the right balance between necessary and appropriate stock levels. It allows you to meet your customers’ needs, be prepared for unforeseen events and uncertainties, and avoid overstocking.

However, it has been difficult to have the responsiveness to ensure that supply matches customer demand due to external factors such as the speed and unpredictability of demand fluctuations.

One way of responding to these uncertainties is to increase stocks. The increase in stocking capacity will protect the company from unforeseen events that have had an impact and disruption on the supply chain. Having stock on hand protects the company from unplanned external situations.

And here comes the concept of…

Safety Stock refers to a level of stock that allows to face unexpected situations such as fluctuating demand, uncertainty of supply and delivery time from suppliers, avoiding any eventuality that could lead to stock-out.

Currently, the lack of safety stock increases the risk of stock-outs, which can result in financial and reputational losses. Thus, it is essential to determine the level of safety stocks with the lowest costs and the highest benefits.

Prevent loss of business due to unforeseen events and delays in the supply chain! With Olicargo, you will find a partner who will manage your stock efficiently. We have specialised resources and advanced technologies that, when combined, provide the answer to the challenges you face in today’s fluctuating demand and delayed deliveries.


Sarmento, F. (2018). Gestão de Existências: Modelo de Revisão Contínua em Ambiente Centralizado e Descentralizado. Coimbra: Universidade de Coimbra.