Supply chain optimization refers to the process of improving the efficiency and effectiveness of a supply chain. This involves analyzing and enhancing various components, such as inventory management, transportation, and supplier relationships, to reduce costs and improve service levels. The goal is to ensure that products are delivered to customers in the right quantity, at the right time, and at the lowest possible cost. By utilizing data analysis and technology, businesses can identify bottlenecks and streamline operations. Techniques like demand forecasting and logistics planning help companies make informed decisions, ultimately leading to increased profitability and customer satisfaction.