A guide to Inventory Management Systems for businesses
Published on: June 06, 2019
Inventory management is a standard process for almost any business that sells a product—it’s a given that you need to keep track of the items you have in order to know what you can sell. But in today’s competitive e-commerce landscape, how do you go beyond simply knowing your current stock count and utilize inventory management to actually get ahead?
Inventory management refers to the process or set of processes carried out by a business to control and keep track of the products (sometimes including the raw materials and components) that it is selling.
Having a well-managed inventory is essential to maintaining a smooth and efficient operation.
After all, if inventory is not at its optimal level, it can hurt practically every area of the business—too much inventory means more expenses and increased risk of waste, while too little means running out of stock more frequently and in turn, less customer satisfaction.
An inventory management system (IMS) is, as its name would suggest, a software used for managing inventory. Also sometimes known as an inventory control or inventory tracking system, it serves as a technology solution that helps avoid inventory management blunders like the ones mentioned above, which are commonplace in a setup with mostly manual processes.
An IMS comes in different forms, but at its core, it automates the processes involved in inventory management and centralizes such processes in a single platform that can be integrated and synchronized with other systems supporting the business.
This resource is an introductory guide to inventory management systems, exploring different topics such as:
- Types of inventory management systems (and how to decide on which one is best suited for your business)
- Typical features of an inventory management system and the difference between inventory and warehouse management
- Implementing and integrating an inventory management system with other company systems