It all comes down to uncertainty about demand projections and supplier reliability. Improved demand projections and supplier reliability means less uncertainty and therefore smaller safety stocks. Reliable suppliers are a must Unreliable suppliers hurt your business because their shipping delays cause stock-outs that cost you sales or force you to tie up excess cash. safety stock levels. Before using a provider, find out what you can about their reputation. It is important to consistently meet delivery deadlines. Proximity to a supplier is an advantage because it reduces shipping times and costs. It also allows you to easily verify their operations first hand. Large suppliers who have more resources available tend to be more reliable. They often use software to track and fulfill their orders, while many smaller suppliers use pen, paper and filing cabinets. However, size is only one of several criteria on which you should base your judgments. Use Drop Shipping whenever possible