All the functions of any business are connected or interlined with one another and the major operational aspects of the business are supply chain, transportation and logistics, and inventory management.
Inventory is the tradable stock and its management is one of the most important functions of the business because through effective inventory management, the business demands and supplies are met. The inventory management is known as the backbone of the delivery operation. The inventory management is important for the controllers of finance and managers of marketing.
Inventory is dynamic, and its management needs a significant evaluation of the internal and external factors including the governance through review and planning. A number of organizations have departments made for planning of inventory who monitor, review, control, and procure the inventory in correspondence with finance department so that business needs are met.
Following points show some references with organizational inventory management such as:
- Inventory can be in incomplete or complete state
- Organizations that are engaged in sales or production hold inventory in one or other form
- All resources of inventory have some value in economy and this is why it is seen as an asset for the organization
- The inventories are managing to facilitate the sales and consumptions or for the value addition in organization
Material related inventory is used in various levels and departments in an organization. An organization dealing in manufacturing processes hold raw material inventory and consumable that is needed for the manufacturing purpose. Semi-finished goods are also inventory that is used in departments for further processing.
Inventories are held in the organizations in various forms and its management is a vital part for the companies whether manufacturing, trading, and retailing businesses so that customers get the products on time and no hurdles will be there from production to delivery of the inventory.