Question

Identify and describe in detail the main requirements for effective inventory management?

Answer 1

Inventory Management

It is a process of storing, ordering, selling, arranging, handling the company’s goods or service, parts, Products. It was an important component in the supply chain area.Every company will have warehouse to store their products. From warehouse to sale point these products used to travel for sale. Efficient inventory management will help to business success .So Inventory management is important core part in any business.

Let’s see important requirement of Inventory Management below.

Ø It keeps the tracking of inventory

Ø Its helps to have effective Material delivery

Ø It helps to improve amount of cash flow by minimizing the storage cost.

Ø Its helps direct to retailer selling of products

Ø Inventory management helps to prevent the losses

Ø It helps to improve the productivity

Ø It helps improves the warehouse management

Ø It provides good customer service

Ø It helps to prevent the theft

Ø Effective inventory managements helps to improve the market share

Ø Inventory control brings more business savings

However some of the issues like over stock and under stock is common problem in the Inventory management. Improper management of inventory management sometimes may lead to business loss. So it’s important to maintain the inventory management in an effective way to taste the business success.