The word “Inventory” stands for the merchandise a business wants to sell to customers and make a profit. Managing inventory is a key step of the supply chain; it involves tracking inventory from the manufacturer to warehouses and then on to a retail center.
Why is inventory important?
Inventory management aims to have the exact products needed in the required quantity at the right place and at the right time. Inventory planning and management systems include:
1. Overseeing of purchase: Goods that are ready to be sold are bought and transferred to the warehouse (or directly to a retail center)
2. Stock maintenance: The goods in the inventory are stored in expectation of demand.
3. Order fulfillment: The extent of product for sale is controlled for optimum Management and dispatched to customers to fulfill orders
Inventory is a business’s most vital resource, and it has to be maintained at optimal levels. Low levels of inventory, when needed, can cause customer dissatisfaction. On the other hand, a very large inventory has disadvantages like the cost of storage and insurance and the risk of damage. Finding the right inventory balance can make all the difference to a business’s bottom line.
Is inventory management the same as warehouse management?
No, they are interconnected but different aspects of the supply chain process. Inventory management is about the actual products or materials that are held within a Warehouse in Los Angeles. Warehouse management is more about how individual items are moved around the warehouse, from the time they come into the stock until they are ready for shipping out. The technology, equipment, and people involved in the process are critical to successful warehouse management.
If you are a growing business that needs help to manage inventory and warehousing, it is advisable to call in a supply chain consulting firm.
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