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    Inventory Management

    Inventory management is the process of organizing, housing, selling, and distributing a business’s inventory.

    What Is Inventory Management?

    For businesses with large product catalogs, managing the warehousing, processing, and movement of inventory can be challenging. Businesses use inventory management processes to keep a pulse on their inventory at all times and streamline the workflows needed to get items to customers as quickly as possible.

    In many cases, inventory management includes organizing and managing the materials that comprise items in a business’s inventory. For resale businesses, this process might involve only managing fully established products from receipt to distribution.

    There are several strategies businesses use for effective inventory management. In a just-in-time management model, the business acquires products exactly when they need them for fulfillment. An economic order quantity model, on the other hand, requires the business to predict how much product they’ll need at a certain time.

    No matter the strategy a business uses, the goal of inventory management is to reduce costly product shortages or overstock.

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