Inventory Categories are a way to organize and classify items in your inventory. These categories help businesses keep track of their products, making it easier to know what they have on hand and to conduct meaningful analysis. Think of them like buckets that you can dip into when you need to count or analyze the items in your warehouse. They allow you to group items based on similarities such as type, size, color, or purpose, to best suit the needs of your business operations. With these categories, you can easily identify exactly how much is on-hand at any given time, so you always know when to order and for how much, ultimately leading to better stocking decisions and cost savings.