How Inventory Management Works
The goal of inventory management is to understand stock levels and stock’s location in warehouses. Inventory management software tracks the flow of products from supplier through the production process to the customer. In the warehouse, inventory management tracks stock receipt, picking, packing and shipping.
Benefits of Inventory Management
The main benefits of inventory management are that it ensures you’re able to fulfill incoming or open orders and raises profits.
- Saves Money
- Improves Cash Flow
- Satisfies Customers
Inventory Management vs Logistics
Logistics is the practice of controlling processes in a warehouse and in the replenishment and delivery systems. Inventory management maintains stock levels and manages stock location. Inventory management is a crucial part of how companies manipulate their logistics. The relationship between inventory management and logistics is interdependent. Logistics need inventory management to perform their activities. Good logistics systems improve warehouse and operational activities.