Inventory Management

The supervision of non-capitalized assets (inventory) and stock items.

What is Inventory Management?

Inventory management involves overseeing the flow of goods and materials within a company to optimize efficiency and meet customer demands. It includes maintaining the right amount of inventory to prevent stockouts while avoiding excessive storage costs. Effective inventory management involves monitoring stock levels, forecasting demand, and implementing inventory control strategies to minimize holding costs and maximize profitability. A well-managed inventory system improves operational performance, reduces waste, and enhances customer satisfaction by ensuring products are available when needed. By managing inventory effectively, businesses can improve cash flow, reduce lead times in the supply chain, and make informed decisions about purchasing and production. Utilizing inventory management techniques such as just-in-time inventory, economic order quantity, and ABC analysis can help businesses streamline their operations and maintain a competitive edge in today's fast-paced marketplace.