A large inventory carries the risk of disintegration, stealing, harm, or changes in demand. Inventory must be protected, and if it is not sold in time it may have to be liable of at clearance prices—or simply demolished.

For these reasons, inventory management is important for businesses of any size. Significant when to refill inventory, what amounts to procurement or produce, what price to pay—as well as when to sell and at what price—can easily become complex results. Small businesses will often keep track of stock manually and control the reorder points and quantities using worksheet (Excel) formulas. Inventory management requires inventory visibility — knowing when to order, how much to order and where to store stock. Multichannel order fulfillment processes typically have inventory spread across many places throughout the supply chain. Businesses need an accurate view of inventory to guarantee fulfillment of customer orders, diminish shipment turnaround times, and minimize stockouts, oversells and concessions.

For these reasons, inventory management is important for businesses of any size. Significant when to refill inventory, what amounts to procurement or produce, what price to pay—as well as when to sell and at what price—can easily become complex results. Small businesses will often keep track of stock manually and control the reorder points and quantities using worksheet (Excel) formulas. Inventory management requires inventory visibility — knowing when to order, how much to order and where to store stock. Multichannel order fulfillment processes typically have inventory spread across many places throughout the supply chain. Businesses need an accurate view of inventory to guarantee fulfillment of customer orders, diminish shipment turnaround times, and minimize stockouts, oversells and concessions.

Larger businesses will use particular enterprise resource planning (ERP) software. The largest corporations use highly customized software.

An inventory management system helps in many ways to an organization like, system users can oversee their current stock from anywhere in the world, Users can get notification which item they need to purchase. Item ledger also generate through the system. Stock valuation through the system. Barcode system can be used by the system. Transfer management which is most important for the inventory goods tracking. Automate shipping to reduce errors such as late deliveries or delivering incorrect packages. Realtime goods tracking, exactly where is the inventory across the procurement.