Track inventory from purchase to sale of. Inventory management helps companies identify what stock to order and at what time 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.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components and finished products, as well as the storage and processing of such items. Inventory management is the tracking of inventory from manufacturers to warehouses and from these facilities to the point of sale. Inventory management is the system that a company uses to order, store, organize and move inventory along its supply chain.
It ensures that companies have the right amount of product in the right place at the right time. 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. A key function of inventory management is to maintain a detailed record of each new or returned product when it enters or leaves a warehouse or point of sale.
The SEC requires public companies to disclose the LIFO reserve, which can make inventories with a LIFO cost comparable to FIFO costs. While physical inventories are usually only done once a year, they can be incredibly annoying to the business and tedious. Instead of taking advantage of inventory management systems, you can cycle count to perform complete physical inventories.