- December 21, 2022
Understanding Inventory Management
When operating a business, it is crucial to be able to keep track of what is coming in and what is going out on a daily basis. Understanding inventory management allows companies to stay on top of their costs and plan out their expected profit.
The process begins with a company receiving goods. These goods are put on the shelves until the point where they are either processed and changed into something new, or they are sold wholesale.
The items are then shipped out.
The process of inventory management can be done manually or automatically. The manual process is very labor intensive, as it requires multiple people at different stages of the process to record the variables, like how much inventory was received and how much was shipped out. This can also lead to human error if one person at a stage of the process puts down the wrong number, as this will lead to more people being incorrect with their totals.
For additional information on the inventory management process, please review the attached video.