Inventory management is a method of keeping track of inventory flow. It begins with the purchase of commodities and their storage, and continues with the outflow of raw materials or stock to the industrial units or the market, as appropriate. The process can be done manually or with the help of an automated system.
When the goods arrive on the premises, inventory management guarantees that these items, such as stock, raw materials, components, tools, and so on, are efficiently received, counted, sorted, arranged, stored, and maintained.
Supply Chain Management is incomplete without an effective inventory management system (SCM). It is responsible for monitoring the purchasing of production components from suppliers as well as the fulfilment of customer orders. This method is used by businesses to meet customer needs and increase sales. It also aids businesses in tracking product movement from manufacturing units to warehouses and finally to places of sale.
Importance of Inventory Management Techniques
Inventory management is critical for eCommerce and online retail businesses. Inventory management aids in better planning and ordering of stock products by achieving a balance between demand and supply, which is vitally important for enterprises.
- Accurate inventory control, brands can fulfill orders on time.
- eCommerce and retail businesses can manage their cash flow opportunities with inventory control and planning.
- Small businesses can cut inventory labour expenses by using better inventory planning and management approaches.
- Businesses can acquire insight into hot-selling products by using an inventory management tool.
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