Inventory Management
                     INVENTORY 
MANAGEMENT
What Is 
Inventory 
Management?
Inventory management helps companies 
identify which and how much stock to order 
at what time. It tracks inventory from 
purchase to the sale of goods. 
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Why Is Inventory 
Management 
Important?
Inventory management is vital to a 
company’s health because it helps make 
sure there is rarely too much or too little 
stock on hand, limiting the risk of stockouts 
and inaccurate records.
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Saves Money
Understanding stock trends means you see 
how much of and where you have 
something in stock so you’re better able to 
use the stock you have.
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Improves Cash 
Flow
With proper inventory management, you 
spend money on inventory that sells, so 
cash is always moving through the 
business.
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Getting 
Accurate Stock 
Details
If you don’t have accurate stock details, 
there’s no way to know when to refill stock 
or which stock moves well.
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Inventory 
Management 
Process
If you produce on demand, the inventory 
management process starts when a company receives 
a customer order and continues until the order ships. 
Otherwise, the process begins when you forecast your 
demand and then place POs for the required raw 
materials or components.
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How Inventory 
Management 
Works?
The goal of inventory management is to understand 
stock levels and stock’s location in warehouses. 
Inventory management software tracks the flow of 
products from supplier through the production 
process to the customer. 
In the warehouse, inventory management tracks 
stock receipt, picking, packing and shipping.
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Retail Inventory 
Management
Retail inventory is the stocking of products 
that you sell to consumers. Use the system 
to set profitable prices and ensure you have 
the right amount of stock to meet demand.
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Manufacturing 
Inventory 
Management
Manufacturing inventory management is 
the practice of keeping enough stock on 
hand so production lines can fulfill orders. 
The process helps managers see stock 
levels at a glance and tracks raw materials, 
parts, work-in-progress and finished goods.
Source: www.netsuite.com
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