Meaning of Inventory Management
Inventory management is a process of tracking the products. This includes all the inventory management until it reached to the final consumer. it includes finished products manufactured by the company and the raw material which may be required for production on finished goods.
Scope of Inventory Management
- Manage Inventory: Inventory management helps to manage the stock of the company. it provides proper details of the products what kind of raw material, what are the sizes we require and etc. to the purchasing department.
- Less Storage: When the inventory management provides proper information to management, they buy according to them which helps the company to store fewer products.
- Improve Productivity: Inventory management helps to improve the productivity of the machines and manpower. Employees are aware of stocks and the quantity that require to produce.
- Increase Profits: Inventory management helps to improve the profits of the company. it helps to provide proper information about stocks, that saves the unnecessary expenses on stocks.