Inventory Management

What is inventory management? Inventory management is a systematic approach to obtaining, storing, and profiting from non-capital assets (raw materials and finished goods). The right stock, at the right levels, in the right place, at the right time, and at the right cost.- Tradegecko As a part of your supply chain, inventory management includes aspects such as controlling and overseeing purchases — from suppliers as well as customers — maintaining the storage of inventory, controlling the amount of product for sale, and order fulfillment.

Benefits of Inventory Management Reduce costs Optimize fulfillment Provide better customer service Prevent loss from theft, spoilage, and returns

Retail Inventory Management (B2C) Online retail (digital purchases) Offline retail (through sales person) Wholesale Inventory Management B2B selling

Inventory Management Techniques Stock Review Regular review of stock at hand vs projected future needs JIT (Just In Time) Stock arrives as needed ABC Analysis Divide stock in into high-value/low quantity, moderate value/quantity, and low value/high quantity Different divisions are managed seperately

Inventory management types Raw material Ex: Steel Work in progress material Ex: Car Chassis Finished goods Ex: Car Maintenance, repair and operations (MRO) goods Ex: Welding torch used to make car

SKU: Storage Keeping Units Stock availability Products location and types Sell rates, margins, profitability Inventory shrinkage due to theft, spoilage or other loss