Inventory management is the oversight of uncapitalized assets (or inventory) and items in stock. As a component of supply chain management, inventory management oversees the flow of products from manufacturers to warehouses and from these facilities to the point of sale. Inventory refers to raw materials, products in process, finished products, or merchandise. It is one of the most valuable assets for a company that deals with tangible assets.
Information is only valuable for supply chain management if you can analyze it and use it for inventory optimization, that's where AI comes into play. The main objective of efficient inventory management is to establish the appropriate reorder quantities for each item in the supply chain and to maintain sufficient inventory visibility to know when to place a purchase order. As in many other industries, the most important trend in inventory management systems is the rapid adoption of automation and machine learning. Creating an agile and responsive supply chain and then creating a reference inventory management capacity where it needs to exist is vital to today's supply chains.
Several inventory management techniques can help companies minimize the impact of a supply chain disruption and ensure business continuity. In addition, with a degree from one of the best supply chain management programs, such as UT Haslam MS SCM — Online, you'll have the qualifications you need to land the supply chain management job of your dreams. In addition to forecasting demand, they must also manage purchasing activities across multiple purchasing channels and monitor internal activities to protect unauthorized purchases. Let's discuss the importance of supply chain management and why it's one of the most important keys to a successful business strategy.
Use Activate to predict production needs for 26% of purchases, gain valuable information about suppliers, products and prices, optimize inventory investment and reduce costs. Watch the short video above to understand the stages of supply chain management and why its optimization is key. Supply chain management professionals need a solid foundation in data analysis to keep up with the latest inventory management trends and to be competitive in the labor market. Activate QuickBooks inventory management manages orders from all sales channels, order fulfillment, customer service and returns in one place.
The MS SCM — Online from the prestigious UT Haslam School of Business provides the skills you need to excel in a supply chain management career. The goal of effective supply chain inventory management is to ensure that the right products are in the right place at the right time. For example, if a supply chain manager of a hospital chain fails to ensure an adequate inventory of a critical medical supply, such as syringes or personal protective equipment (PPE), the institution's ability to provide medical services would be adversely affected.