What is Continuous Replenishment?

Continuous replenishment is a strategy in which businesses share inventory information with suppliers, allowing those suppliers to automatically replenish inventory when needed.

Automating inventory replenishment helps reduce logistics and warehousing costs and aligns production with demand. This arrangement benefits the suppliers, too, as they can effectively plan for production. Plus, this strategy eliminates the need to generate purchase orders, thereby simplifying order processing.

Related Terms

What is Calculate Direct Cost?What is Capital Expenditure?What is Capital Purchases?What is Catalog?What is Category?