What is inventory management?

Inventory management is defined as the process of overseeing and controlling the ordering, storage, and use of products, which directly affects a company's operational efficiency and profitability. This approach ensures that the right amount of stock is available to meet customer demand without overstocking, which can lead to increased costs and waste. Effective inventory management helps businesses track their stock levels, manage reorder points, and minimize holding costs, ultimately leading to better service for customers and optimized operational processes.

By focusing on the ordering, storage, and utilization of products, inventory management plays a crucial role in maintaining a balance between supply and demand, ensuring that resources are used efficiently and effectively.