Inventory management is a procedure of keeping a check and balance on company’s inventory. It is referred to keeping an eye on the inventory moving from manufacturers to company’s warehouse and from warehouse to relevant distributors or retailers. Moreover, it is a system designed to locate the company’s products’ current position and depart them to their potential position.
Inventory management is an essential element of Supply Chain Management because what can possibly be supplied if there is no inventory? To create an efficient supply chain management, it is a pre-requisite to have a firm hold on the inventory! Businesses purchase and sell inventory on a daily basis, and daily transactions with respect to inventory are certainly a hard thing to keep a track with; which is why, inventory management systems primarily overlook raw products, products: still in process and finished inventory by supervising the inventory control, storage sites, number of orders, quantity of products, variety of products, assortment and cost of the product set to sale.
Are there any benefits of inventory management systems? Oh yes, there are!
There are a number of reasons why you should bring an efficient system for managing inventory. Not only will it enhance your financial books but will also provide efficiency to your company’s operations. Working with hundreds of different manufacturers and distributors is not a piece of cake which is why inventory management systems support supply chain management to keep a track of the right quantity of products brought from each manufacture. Furthermore, large inventory carries a number of uncertain situations like for food retailers, taking care of frozen foods can be a big deal and therefore, require right precautions to keep the products in a purchasable condition. For more of such reasons, inventory management has become more than just a requirement or a business operation for any size of inventory-intensive businesses.