This paper aims to review the basic principles of inventory control and reduction in material handling costs by discussing traditional techniques and parameters which influence them. It aims to define the relationship between production and distribution and the use of technology to serve this relationship better. It also aims elucidate various flaws in the typical techniques and provides solutions to the same. It introduces RFID technology as a realistic technical tool which can help serve the supply chain more efficiently, with better balancing of resources and by acting as a continuous source of information. It also outlines the importance of customer feedback on the sales and reputation of the company and its goods. With better visibility in a supply chain, several positive changes can be brought which can redefine the operations and investments involved.