Definition: Inventory Management

What is inventory management?

Inventory management is the process of overseeing and controlling a company's inventory of goods. This can include the ordering, storing, tracking, and selling of products.

Inventory management is particularly important for businesses that sell physical products, as stock levels can directly impact sales and profits. To manage inventory effectively, companies may use various tools and techniques, such as inventory tracking software, just-in-time (JIT) inventory management, warehouse management, and regular stocktaking.

The goal of inventory management is to ensure that a company can fulfill customer orders in a timely and cost-effective manner while minimizing the risks of stockouts or overstocking.