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Inventory management is a component of supply chain management that involves supervising non-capitalized assets, or inventory, and stock items. Specifically, “inventory management gwankhosupervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.” Thus, inventory management hinges on detailed records of products or parts as they enter and leave warehouses and points of sale.
Inventory management is critical to the bottom line because inventory is a major asset that remains an investment until the products sell. Several costs are tied to inventory management because businesses must store, track, and insure inventory. Overall, best practices in inventory management involve sound purchasing plans to guarantee items are available when they are needed without having too few or too many on hand and the necessary tools for tracking existing inventory.Inventory management is a step in the supply chain where inventory and stock quantities are tracked in and out of your warehouse.The goal of inventory management systems is to know where your inventory is at any given time and how much of it you have in order to manage inventory levels correctly.Inventory management can be a tedious process that slows down your business. A software tool with the right features can help.