What Is Inventory Management?
Inventory management is a coordinated full circle processes from supply chain management to material planning, through inventory control and including logistics all which would be carried in the warehouses.
Inventory management usually begins and ends with supply chain management due to the opportunities to improve efficiencies in order to reduce additional costs. However, the other stages of the inventory management cycle are also important in attaining overall work efficiency.
As inventory is one of the top expenses for all organizations, there is urgent requirement to apply the correct procedure in each step of the processes.
Different organizations would have different type of inventory management and thus the mosyt efficient inventory management is an inventory models which incorporates different technical applications into it.
Buffer stock, minimum ordering quantity, price of goods, inventory turnover, customer inventory stock and suppliers managed inventory, play a critical role in what is inventory management. Different industries would have different needs on what is inventory management, but most of the concepts are the same.
Even though the key principles of inventory management remain the same throughout all industries, the areas which require emphasis would vary from sector to sector. Knowledge on how to apply the right inventory warehouse management tools is part of executing the method and science of what is inventory management.
Effective inventory management depends on the full knowledge on what is inventory management. By applying all aspects of the inventory management cycle, businesses can reduce investment in excess inventory level, warehouse rental, logistics costs while maintaining or improving customer service levels and in-stock level for critical inventory.