Inventory management is the process of tracking the movement of your products and monitoring available quantities based on consumer demand. This involves further understanding the correlation between product availability and customer needs. It also means leveraging this information to improve decision-making related to order frequency, quantity, and timing.
Your available inventory is a crucial component in building a successful supply chain, and it requires balance. For example, your customers want to find their favorite products when they are ready to buy them. If your items are not available when customers need them, you run the risk of losing sales. However, having overstock could create unnecessary costs.