Inventory management is the process of effectively overseeing the constant flow of units into and out of a company’s warehouse or storage facility. This involves tracking items from the moment they are received to when they are shipped out. It also requires close coordination between departments like sales, procurement, production, and logistics in order to ensure that all inventory remains organized and accounted for. In order to maximize efficiency and minimize losses, businesses should look to adopt a comprehensive inventory management system that includes multiple steps:
- Receiving: When products arrive at the warehouse they must be logged in a database and checked for accuracy.
- Storing: Products must be placed in designated spaces in an orderly manner so as to maximize space utilization.
- Tracking: The business must track stock levels closely in order to know when to order new supply.
- Shipping: When goods are ready for sale, they need to be moved out of the warehouse properly.
- Return/Recall: Goods that have been returned or recalled must be processed accordingly to ensure accurate record keeping.