What is inventory management? Basically, inventory management is the process of keeping your parts, products, and assets organized across all of your warehouses. It involves numerous tasks, such as keeping track of the number of items in stock, reordering them from time to time, monitoring their movement from one location to another, and more.
Also encapsulating warehouse management, inventory management is extremely useful at maximizing your warehouse space and speeding up the receiving, picking, packing, and shipping processes. It keeps your inventory quantities balanced so you will have enough on hand to meet demand without going overboard and winding up with an unnecessary overstock.
Here are some ways that you can use inventory management in your business:
- Stay on top of seasonal sales trends via detailed reports.
- Restructure your warehouse.
- Put parts that are often used in conjunction with each other close together.
- Use auto reorder points to keep inventory flowing in and out at the optimal rate.
- Form mutually beneficial relationships with vendors to maintain supply chains.