Inventory management helps companies identify what stock to order and when and when. Track inventory from buying to selling goods. The practice identifies and responds to trends to ensure that there is always enough stock to fulfill customer orders and to adequately warn if there are shortages. The main benefit of inventory management is resource efficiency.
The purpose of inventory control is to prevent the accumulation of unused dead stock. Doing so can help prevent the company from wasting its resources and space. Effective inventory management and control protects against shipping incorrect or damaged products to customers. This helps improve the customer experience, protect them from problems such as refunds, and achieve more repeat buyers.
But what exactly is inventory management and why is it important to your company? We're going to break down what you need to know and how you can do things better. For very small businesses, a spreadsheet may be sufficient to track inventory, but most companies benefit from having more advanced software because of the importance and complexity of warehouse inventory management. An experienced 3PL company has the tools, equipment and software needed to simplify inventory management and increase warehouse efficiency. With Wrike's product management tools, you can manage all the activities of your product team in one place and get the most out of every project.
Regardless of the size of your company, having a proper inventory management system is very important for any business. Effective inventory management improves the accuracy of your fulfilled orders and reduces the likelihood that you'll ship the wrong product to the wrong customer or ship the wrong order to the wrong supplier. Some companies, such as financial services companies, do not have physical inventory and, therefore, must rely on managing service processes. To achieve these balances, companies have developed several methods for inventory management, including the just-in-time process (JIT) and material requirements planning (MRP).
As a result, your brand receives the benefits of a well-optimized inventory management and control system. Inventory management is especially useful for companies that want to effectively manage seasonal items or the new best-selling products throughout the year without disrupting the rest of their chain. If you're thinking of reviewing your inventory management system, start by finding good inventory management software. And as brands move from having small warehouse space to larger facilities, so does the need to manage inventory efficiently.
If a company frequently changes its inventory accounting method without reasonable justification, its management is likely trying to provide a clearer picture of its business than is real. In addition, Wrike's advanced information tools allow you to track progress in real time, which is important for any successful inventory management strategy. Managers can also try to use their inventory management plan to monitor sales procedures, leading to better service.