What is inventory management?

Definition

Inventory management is the process of planning and controlling the flow of goods or merchandise in a company. It is the way in which an organization and its departments determine what items are needed and what items are required to be sold in order to generate profit. Most companies have some form of inventory management as part of their daily operations. It is a big part of managing a business, especially in retail and wholesale companies. Inventory management can also include evaluating items that are not sold so they don't get wasted or stolen. This means that there are many different methods that can be used to manage inventory from accounting methods to physical methods. In this article, we will discuss how inventory management can help your company maintain control over its supply chain, and what these different methods entail.