Inventory Management

The products or materials in inventory are those that a company plans to resell to customers for a profit. Tracking inventory from producers to warehouses and from these locations to a point of sale is inventory management, a crucial component of the supply chain. Having the right products at the right location at the right time is the aim of inventory management. This necessitates inventory visibility, which entails being aware of when, how much, and where to store stock.

Steps of inventory management 

• Purchasing inventory: Purchased and delivered to the warehouse or the point of sale, ready-to-sell items are purchased.
• Storing inventory: Inventory is kept until it is required. Materials or goods are moved around your fulfillment network until they are prepared for shipping.
• Profiting from inventory: The quantity of goods available for purchase is limited. Orders are filled by pulling finished goods. Customers receive product shipments.

Why Is Inventory Management Important?

Because it helps to ensure that there is rarely too much or too little product on hand, inventory management is essential to a company’s health because it lowers the danger of stockouts and inaccurate records.

To comply with Securities and Exchange Commission (SEC) standards and the Sarbanes-Oxley (SOX) Act, public corporations must keep track of their inventory. To demonstrate compliance, businesses must document their management procedures.