What is Inventory Management?
Inventory Management is the process of ordering, storing, using, and selling a company's inventory. Inventory includes the raw materials, components, and finished products that are used or sold by the company. Inventory Management aims to have the right products in the right place at the right time, to meet the customer and regulatory expectations. Inventory Management also involves tracking the inventory from purchase to sale, and ensuring the safety, quality, and performance of the inventory.
Why is Inventory Management important?
Inventory Management is important because it affects the quality of service and customer satisfaction, as well as the efficiency and effectiveness of the company. Inventory is one of the most valuable assets of a company, and it represents a significant investment and expense. Therefore, managing inventory properly can have a positive impact on the company's revenue and profitability. Inventory Management can also help to prevent and reduce the risks and hazards associated with inventory, such as spoilage, theft, damage, obsolescence, and stockouts.
Major benefits of Inventory Management
- Improved customer satisfaction and loyalty, leading to higher sales and retention
- Improved processes and procedures, leading to higher quality and productivity
- Reduced waste and errors, leading to lower costs and improved service
- Enhanced innovation and learning, leading to better products and services
- Strengthened stakeholder relationships, leading to more opportunities and collaboration
