In procurement, an inventory system is a tool used to keep track of goods and materials as they move through a supply chain. It helps businesses manage their stock levels and make sure they’re not overstocking or understocking any item. An inventory system also records how much of each item is in stock, where it is located, when it needs to be replenished, and the cost associated with each item. Having an efficient inventory system allows businesses to avoid wasted resources, reduced overhead costs, and improved customer service. With an inventory system in place, businesses can better ensure that their items are always available to customers when they need them.