What is Inventory management?
Inventory management is the process of tracking how much stock a business holds, where it is, what it is worth and when to reorder it. It covers receiving, storage, transfers, counts and valuation, and is usually handled within an ERP or dedicated warehouse system.
Why it matters for your business
Good inventory control avoids both stockouts that lose sales and excess stock that ties up cash, and accurate data supports better forecasting and purchasing.
A wholesaler sets reorder points in its ERP so that when an item falls below two weeks of expected demand, a purchase order suggestion is created for the buyer.