What is Inventory Management?
Inventory management is the supervision of non-capitalized assets (inventory) and stock items. A component of supply chain management, inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
What are the main functions of inventory management?
There are a number of components to inventory management, but there are three core strategies:
- Prevent stockouts – perform regular stock counts, implement software
- Minimize overstocking – calculate demand forecasting with an effective formula, highlight gaps and deficiencies by reviewing patterns in data
- Improve processes – automate manual processes, properly train employees and hold them accountable