Managing Inventory Risks in SMEs: Strategic Approaches to Stocking, Supplier Choice and Digital Solutions

Abstract

In a globalized and unpredictable economic environment, effective and strategic inventory management plays a key role in the life of every business. This is especially true for small and medium-sized enterprises (SMEs), which are forced to respond quickly and flexibly to changing market demands with limited resources. This study examines the strategic importance of inventory management using the example of a Hungarian SME, qsd2 Kft., with a particular focus on geotextiles as a key product category. The research focuses on two key questions: the impact of the introduction of the consignment inventory model on the financial stability and customer service of , and the role of the geographical diversification of the supplier network (domestic, EU, and Chinese partners) in terms of cost efficiency and risk management. The study, which combines qualitative and quantitative methods—based on an analysis of company documents, semi-structured interviews, and procurement data—shows that consignment stocking has significantly improved the company's liquidity and reduced customer dissatisfaction due to stock shortages. In addition, the conscious geographical diversification of suppliers contributed to increased security of supply and reduced cost volatility. At the same time, the practical application of the model has also brought administrative, legal, and communication challenges to the surface. One of the most important lessons of the research is that inventory management can become a real competitive advantage for SMEs if it is supported not only at the operational level but also with a strategic and technological approach. Digital decision support systems, advanced demand forecasting techniques, and the integration of sustainability considerations can open up new perspectives in inventory optimization. Future research could expand our knowledge of this topic through cross-sector comparisons and a deeper examination of the role of IoT-based inventory monitoring and AI-supported forecasting solutions.