For any goods-based businesses, the value of inventory cannot be overstated, which is why inventory management benefits your operational efficiency and longevity.
You’ll find everything you need from inventory control basics to best practices and formulas to advanced automation processes.
As a part of your supply chain, inventory management includes aspects such as controlling and overseeing purchases — from suppliers as well as customers — maintaining the storage of stock, controlling the amount of product for sale, and order fulfillment.
As you’ll see below, there are other terms such as “decoupling inventory” and “pipeline inventory” used to describe types of stock-based on its theoretical purpose and use.
Nonetheless, physical inventory almost always falls into one of the four categories above.
Let’s add to that a label for everything and the means to track it all.
And, how about some alerts when there’s too much of one item and a shortage of another?Wholesale, on the other hand, refers to business-to-business (B2B) selling.Knowing the differences and best practices of retail and wholesale is critical to success.The average inventory days outstanding varies from industry to industry, but generally a lower DIO is preferred.Determining whether your DIO is high or low depends on the average for your industry, your business model, the types of products you sell, etc.Third-party logistics refers to the use of an external provider to handle part or all of your warehousing, fulfillment, shipping, or any other inventory-related operation.Fourth-party logistics (4PL) takes this a step further by managing resources, technology, infrastructure, and full-scale supply chain solutions for businesses.Most businesses maintain stock across multiple channels as well as in multiple locations.The diversity of retail inventory management adds to its complexity and drives home its importance to your brand.This mix pretty much sums up what inventory management software can do for your business.Whether you’re running a brick and mortar store, an e Commerce site, a supermarket, or a logistics company, an inventory management system is a must-have.