What is Inventory Management? The Basics of Inventory Management

good business requires good organization inventory management is a key component of supply chain management and necessary for any business involved in buying or selling products inventory management supervises the flow of goods for manufacturers to warehouses to the point of sale keeping a detailed record of each new or returned product is key it can be a very complex process especially for large organizations but the basics are the same regardless of the business size or type first goods are or

dered through the purchasing department then goods are delivered to a warehouse usually in raw materials and placed in the stock areas then goods are pulled from stock and move to the production facilities to be made into finished products finished goods are returned to the stock areas and finally products are shipped out to the customer through the sales department inventory management uses a variety of data to keep track of the goods as they move throughout the process including lot numbers se

rial numbers cost of goods quantity of goods and the dates when they reach each step of the process inventory management software systems begin a simple spreadsheets that track the quantities of goods in a warehouse but have become more complex software can now go several layers deep and integrate with the accounting and ERP systems and can be highly customized for large organizations to keep the right amount of goods on hand to fulfill customer demand but stay profitable several methodologies a

re used such as stock review just-in-time methodology and ABC analysis methodology what systems do you use for inventory management let us know in the comments below and remember to hit that like button you